Smart Borrower Blog

Archive for the ‘Small Business Loans’ Category

Small Business Lending Increasing

According to new data from ThompsonReuters/PayNet, small business lending is on the rise. During the month of September lending was up 16% from last year at the same time. Additionally, these new figures put lending at the highest level seen in the last two years. The big question is whether or not these loans will help give the economy a boost. PayNet’s president and founder William Phelean, believes it will. “This doesn’t point to anything but a robust recovery,” said Phelan in an interview. “These small businesses are people who see the demand in the economy every day, and they... more »

Half of Small Businesses Are Denied Loans

A recent survey by the Federal Reserve found that almost half of all small business loan requests are denied by banks these days, a very troubling statistic considering the following information: “Small firms employ nearly half of all Americans, account for about 60 percent of gross job creation, and historically have created more jobs than larger firms at the start of economic recoveries,” according to a report from the Federal Reserve Bank of New York released Monday as quoted on CNN Money.com. “Yet recent contractions in business borrowing may be limiting the capacity of small businesses to play this critical... more »

When Will True Small Business Lending Recover?

Since Congress passed the Small Business Jobs Act just a few weeks ago, the government has backed another $5 billion in loans to small business owners. These hard working folks had all been on a long waiting list, the Recovery Queue so-called since the time money ran out from the last small business stimulus infusion. And I’m glad they are getting their funding – they need it and the economy needs them to get it. But I’m wondering when the private sector is going to open the capital spigot and start lending on its own again. Since the Recovery Act... more »

New Small Business Bill Would Give Owners Sweet Tax Breaks

Yesterday the Senate passed a bill call the Small Business Jobs Act and the House was expected to approve this Obama-sanctioned law today. The law is designed to drum up some hiring activity among small business leaders, amidst recent reports from the Joint Economic Committee recently that found small business hiring is in a holding pattern right now. “We’re all a bit gun-shy because we don’t want to hire and then lay off,” said David Jones, a small businessowner in Dallas, as quoted in the Wall Street Journal. “But if I can get private equity…and get some money in the... more »

Banks Ease Lending Standards for Small Businesses

According to a Federal Reserve survey, banks have started to ease lending standards for small businesses. Since 2006 lending practices have made it very difficult for small businesses across the country to get loans. Many economists believe that this has been detrimental to our economy’s financial recovery. While large businesses have already been finding easier criteria to receive business loans for the first time in over three years, banks are finally easing standards for small businesses as well. A small business is defined as one that has sales of $50 million or less, according to the federal reserve. “After three... more »

Get Ready For Guaranteed Lending Again

Remember the early 1990s? The economy was fairly lackluster as the S&L crisis had just wiped out over a thousand banks. Plus the Resolution Trust Corporation was sinking the commercial real estate market by dumping thousands of properties on the market at low prices, and war was heating up in the Persian Gulf. To lower the risk of lending to small businesses and yet provide the market’s need for long term real estate financing, bankers started discovering the U.S. Small Business Administration’s loan guaranty programs in droves. The SBA survived the Reagan Administration’s efforts to kill the agency, and the... more »

Bank of America Giving $10 Million to Boost Small Business Loans

Last week Bank of America made an announcement that potentially could help boost loans to small businesses throughout the country. Bank of America will be giving $10 million in grants that could have a large impact on small business lending. Community Development Financial Institutions and other non-profit micro-lenders who will receive the grant are expected to turn the $10 million in grant money into $100 million in loans to small businesses. Bank of America, is taking a bold step and is the first large financial bank to ever give money, not lend money to these type of organizations. “We started... more »

Federal Reserve Chairman Calls for More Small Business Lending

Ben Bernanke, the Federal Reserve Chairman is calling for small businesses to get the help they need financially so that they can create new jobs. He is urging regulators and banks to find ways to lend to small businesses, saying that the economy needs this boost to help restore employment. He feels that to date not enough has been done to help financially secure small business owners who could play a major role in turning around the economy and unemployment. In a speech to the Fed’s forum for restoring credit to small business’s Bernanke said, “Making credit accessible to sound... more »

Chase Gives Small Businesses a Reason to Start Hiring

JP Morgan Chase, the country’s second largest bank by assets, announced yesterday that it wants to encourage more hiring among small businesses. “We know how important it is to help small businesses because they are core to the U.S. economy,” JPMorgan Chief Executive Jamie Dimon said as quoted in a Reuters article. The bank has a new program that will reward customers opening new business lines of credit up to $250,000 with a 0.5 percent reduction in loan interest rates for each new employee they hire (maximum of 3 new employees.) The deal extends to customers with existing credit lines... more »

Small Business Forum Controversy

A Small Business Forum to take place at the end of this month at the Department of Commerce has the American Small Business League (ASBL) and small business owners throughout the county up in arms. The small business forum, announced just last week, was scheduled last minute with a very small opening for registrations, making it difficult and nearly impossible for some many small businesses to attend. It is also not known as of yet if attending small business owner will have a chance to speak and voice their opinion. This has left many frustrated and wondering if they should... more »