The financial crisis of 2008 resulted in small businesses having a great deal of difficulty in getting the loans they needed to operate. Lenders were simply not ready to give out loans like they once were. It has taken several years but it now appears that loans are on the right track for small business owners!
Small Businesses Finally Getting Loans Again in 2014
Lenders are beginning to open their pocketbooks again and this is benefiting small business owners. For the second month in a row, there were just 4% of small business owners said that their credit needs were not being met by lenders which is the lowest since the crash of 2008 and the following crisis. Awesome news. The banks are no longer being as picky as they were before about who they lend money. The lending market is still quite challenging, to be honest, but banks and other lenders do appear to be willing to offer more for small businesses to get the funds they need to operate and become successful!
Small businesses are also getting the loans they need with low-interest rates and last month (December 2013) the loans made by larger banks to small businesses rose by 17.6% up from 17.4%. These numbers come from an index provided by Biz2Credit, which helps small businesses find lenders to help them with their financial needs. This is the highest rate since Biz2Credit started to track this data in 2011 when big banks only approved about 12.8% of loans for small businesses which cut into growth a great deal and stalled the economy. The economic climate for small businesses is slowly gaining steam and recovering from the meltdown which is excellent news for the economy as a whole! Small businesses are the lifeblood of the economy and they help to stimulate jobs in local communities. Banks are beginning to ease credit standards that were tightened after the financial crisis.
Many small business owners that were turned down for large loans such as $100,00-$300,00 in the past few years are now getting these loans again from the major banks and lenders. This is allowing small businesses to grow and hire new employees as a result of getting the capital they need to operate effectively.
As a small business owner, it’s now better than ever to try for that new loan that you have been hoping to get but were having difficulty obtaining just a few years ago. Most banks are now willing to talk with you! There’s still a need to be careful with your loans as you have to ensure that you actually need the loan but the banks are now willing to make it easier for you to grow your business which should make 2014 a good year for many small businesses!
In other words, the time is now to take the leap and GO FOR IT!