(Newswire.net – July 17, 2013) Los Angeles, CA – Small business loans are a natural indicator for the health of our economy. When those numbers increase, conventional wisdom would indicate this is a trend the USA economy is on an upswing.
Upon closer scrutiny, however, the total dollar amount of loans decreased over $19 billion dollars from June 2012 to June 2013, according to the Wall Street Journal. “Each data point is a notable indicator,” stated Pamela Bowen, Founder and CEO of Fast SBA Funding. “The numbers don’t lie; the interpretation of those numbers is most important, of course. A 10 percent increase in lending shows more businesses are confident to take on debt. However, as lenders continue to clear bad debt from their books, they are low-balling small business owners on their funding needs,” she reported.
Inc Magazine confirms the mixed signals. In a short interview with David Hemmingway, Chief Investment Office of Zions Bancorporation, he reported the banks’ reluctance is due to trepidation on the consumer side and could very well affect entrepreneurs’ abilities to get their companies off the ground. Small business loans are affected because many entrepreneurs use consumer loans, based on their own personal credit ratings, to finance the early stages of their businesses.
For established or growing companies, not many entrepreneurs use consumer loans to fund their operations. The SBA, with its mountains of paperwork and regulatory hurdles, cause many small business owners to avoid small business loans purely because of the time and headache of applying. This avoidance is understandable, despite the fact that the SBA program has several levels of loan guarantees from their microcredit lines of $10,000 to $5 million for revolving lines of credit, real estate, and capital loans (CapLines, 504, and 7(a) loan programs).
Many small business owners submit an application with their current banker in hopes the SBA guarantee will solidify the deal. Unfortunately, for many, after months of waiting, a rejection or reduction in the loan amount is the most common outcome. Fast SBA Funding eliminates the long lead time and simplifies the entire loan package creation process, which are the two main stumbling blocks for entrepreneurs. Bown concluded, “Once the client’s funding package is complete, our database screens hundreds of lenders and aligns the small business owner’s profile to a series of lenders of small business loans.” This puts the choice, and power, with the business owner instead of the bank. “It reverses the power play for a business owner. Previously, business owners are at a disadvantage because they are asking for money from one source. With Fast SBA Lending, the lenders compete to give you money. Getting a small business loan has never been easier or faster.”
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Contact: Pamela Bowen
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Telephone: 800-331-9907