More Small Businesses Getting Loans
Along with the other challenges of a rocky economy, many small businesses have found it difficult to get loans the past few years. At the end of 2011 though things started to look up for small businesses seeking loan money.
The number of small business loans spiked 18% this past January. Although lending is still lower than it was 4 years ago, the index has been steadily increased the past 18 months.
We hope this means small businesses will be spending more and helping the economy recover. It may also mean the small businesses will be hiring more employees this year.
However, it could unfortunately be a sign that more startups need the money to merely survive. In addition some of the startups taking out loans may be putting themselves into debt they will not be able to get out of.
At the end of 2011 more small businesses took out loans than had in years. The question is, is it a good thing or a bad thing?