Small business funding looking up
By BuildMyBiz on December 1st, 2014
December 1, 2014 in Finance and Accounting
During the height of the Great Recession, small business lending hit severe lows, hindering the chances that entrepreneurs had to maintain or grow healthy operations for more than a few years. Since most entrepreneurs cite small business funding and access to credit as the most important aspects of running their companies, these significant contractions in loan availability severely tested their resolve.
Now, the skies are clearing with commercial lending and U.S. Small Business Administration loan programs starting to reach pre-recession levels. It appears as though these improvements will continue on through the end of the year and into 2015, which could have dramatically positive impacts on a wealth of other economic segments including the jobs situation and gross domestic product.
SBA’s New Record
The U.S. Small Business Administration (SBA) has been one of the most consistent and important supporters of the small business sector for decades, and continues to be a champion of entrepreneurs in even the darkest economic times. The administration announced earlier this month that it broke yet another funding record, this time for its flagship 7(a) program in its latest fiscal year that closed at the end of September.
“As our economy continues to grow and recover, small businesses are the essential fuel to that continued growth,” SBA administrator Maria Contreras-Sweet affirmed. “Thanks to the hard work and outreach by our lending partners, SBA staff and our resource partners, as well as the small business owners themselves, we have been able to put more capital into the hands of our nation’s entrepreneurs. We know that America’s small businesses pack the biggest punch, creating two out of every three net new private sector jobs in the U.S.”
The record for the program now stands at $19.19 billion in financing through more than 52,000 unique application approvals.
Implications For Entrepreneurs
Again, financing and access to credit tend to be two of the more critical aspects of running a business, especially when operations are still in the startup phases. Lending terms – regarding both the programs offered by the SBA and general commercial loans – have become a bit looser in recent years, making it a good time to apply if in need of financing to expand operations.
With economic conditions improving across the board, now may be a better time to expand your business than at any time since the recession.
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