Obama is trying to make changes in lending policies and is urging Congress to make changes in regulations so as to enable entrepreneurs find required finances to grow. Credit access still remains the biggest issue confronting entrepreneurs and small business owners.
Lenders in US are reporting rise in loans. Recently, Citibank reported 30 percent jump in small business lending. J.P. Morgan Chase too is saying that small business lending has increased by 52 percent in 2011. Also, Biz2credit lending index reported that lending to small businesses topped 62 percent in December. And that credit unions, micro-lenders and alternative lenders are giving loans and this has resulted in 62 percent approval as of December 2012 compared to 49 percent in January 2011.
From reports of most banks and private lenders, loan growth has returned in the fourth quarter. Among the applicants, there are healthy borrowers who want to expand as opposed to borrowers who are approaching banks just to stay in business. Also, bankers are willing to lend now.
The US economic recovery is hinged on credit access from financial institutions to businesses. Other significant events and factors like deficit and tax policy too make it easier for businesses to grow. So, Fed should concentrate on these factors too. Currently, lending environment is improving and that is an indication of improvement in business.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com