Over past months, concerns over restricted credit access for small business have been growing. This has made small business loans a priority for federal and state governments. The growth potential of the companies has been hindered due to lesser availability of funds. Carolina is one state being assisted by federal funds to increase access to small business loans in 2011.
Similar funds are being allocated to other states to help them benefit. It is part of Federal jobs act to assist small businesses with loans. This is a direct allocation of capital which will help to create more jobs in the current year. Unemployment continues to pose a major hindrance to recovery of state as well as the national economy. Small businesses are being relied upon to cover this gap and help men and women find jobs.
Small businesses that haven’t been in a position to access capital are unable to recruit more workers. The reason is there are no ways to invest in growth without access to small business loans and credit.
Some new initiatives of SBA are believed to be helpful in 2011. Small business loans are believed to become more easily available to underserved communities and companies that need smaller amount for their businesses. But, even if opportunities are available there are doubts over whether businesses are going to borrow.
There is the concern that businesses will be reluctant to seek loans due to sluggish economy. But some businesses have stated they would not miss the opportunity to get loans. Analysts also feel that with the expansion of business, hiring of workers will increase along with consumer confidence. Entrepreneurs will borrow more loans and will employ more.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to