According to the SBA’s Office of the Advocacy, "Total business lending continued to increase by June 2012; the rate of decline slowed for small business loans of all size categories."
Great news indeed. The increase in small business lending was brought about by three major campaigns. First, the SBA continued its aggressive push of its most popular small business loan programs – its 7(a) program and its 504 community loan program. Second, banks of all sizes started to relax some of their most stringent lending requirements but continued to focus on the upper scale of the small business category. And lastly, new entrants in the capital markets began finding new ways to provide needed business capital to those smaller firms that were otherwise deemed un-fundable.
However, while small business lending has picked up, it is nowhere near the levels that it needs to be to actually spur economic development and growth in our nation.
Banks and other traditional small business lenders continue to cite increase demand for business loan but still claim that the majority of these potential borrowers remain un-creditworthy. The main issues with these potential borrowers is their poor or bad credit histories as well as their over abundance of personal and business debt. Further, those new lending entrants and their ground-breaking revenue based lending programs, while picking up some slack, face many of the same challenges that their bigger, more traditional counterparts face in regards to the strengths and weaknesses of small businesses – like bad credit, high debt and even higher debt ratios.
But, if un-creditworthiness is the issue holding back small businesses and their ability to expand and hire additional employees, then why aren’t we focusing on this issue?
Business Money Today is tackling this problem head on by creating a free, searchable database of vetted companies that have programs to help small business owners improve their credit histories and / or consolidate their debt into more affordable and manageable liabilities – all with the goal of making these entrepreneurs – those existing small businesses or those wishing to start new companies – more attractive to lenders – making the un-lendable more creditworthy in the eyes of all small business lenders.
Why? Know that small businesses create the bulk of new jobs in this country, create the biggest and brightest new innovations and their continued success brings increased prosperity to the communities in which they operate. If we can help small businesses grow, then we can help their communities grow. And, as their communities grow, so does our nation. It might take a village to raise a child but it takes solid small businesses to raise that village.
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Business Money Today provides information and resources regarding all types of business financing options, providing better information to business owners allowing them to make better choices in their financing decisions; better choices that could mean the difference between financial freedom and business failure.
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