The small business credit pipeline has gotten better and there is indication that business lending has risen. There are many entrepreneurs who previously could not find access to credit but can now procure loans for their company. Even large banks in US witnessed a rise in loan demand and approved more loan applications in September compared to the previous month. Biz2Credit, an online credit marketplace, found an overall loan volume rise by 5.6% in September compared to August.
Augmentation of business lending has spread across U.S. Florida, for example, has seen 17 banks increase small business loans. All of these 17 banks participated in SBLF program of the SBA and increased lending to small businesses by $250.82 million. All the banks reported $1.4 billion in loans, that is, 21% more compared to the present $1.2 billion baseline.
The fact that big banks have returned back to small business lending is a positive indication for small business growth. Approval rates at big banks reached 14.2% in September compared to 10.9% in August. The big lenders are now able to offer long-term, low-cost, working capital loans to borrowers. So, businesses who could not secure loans from a traditional lender can now look out for banks to grant them funds. In fact, in fiscal year 2012, that ended in September, the SBA gave out $30.25 billion in 53,848 loans to small businesses. The number is going to jump in coming days.
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.