Miami valley businesses have taken initiatives to start new companies and expand the existing ones in the span of last two years. This has been done with the help of federal government-loan programs and because of the growing confidence in U.S economy.
An analysis done by Dayton Daily News has shown that SBA loans issued to Miami Valley businesses totaled $97.2 million in 2011. In the year 2010, SBA loans to small businesses totaled $68.8 million and in 2009 total loan amount remained $63.9 million. During last fiscal, Government supported commercial loans jumped 358 that is up from 231 in 2009 and 283 in 2010.
Stimulus funding has also helped to grow demand for government-backed loans. There is expectation that government-insured borrowing shall reach pre-recession levels. Businesses are looking for access to capital as the economy has started to improve and now small business owners are willing to invest. As lending has gone up, there is the belief that the economy has revived.
SBA makes finance available to businesses that are unable to secure conventional commercial loans. The 7(a) loan program is an initiative of the SBA to encourage financial institutions to lend out to small businesses. The 504 loan program is another initiative that is used to finance the purchase of fixed assets like real estates.
The fiscal year 2011 has seen SBA approving 358 loans valued $97.2 million to seven-counties like Butler, Clark, Champaign, Greene, Montgomery, Miami, and Warren. The American Recovery and Reinvestment Act made $730 million available to the SBA so that it could alter its lending and investment programs. The Stimulus provision has allowed Guarantee on 7(a) loans to be raised to 90 percent and also eliminates fees for grants made.
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 firstname.lastname@example.org