We don’t have to tell you that the economy has been hard on small businesses over the past few years or that obtaining financing through traditional means has been difficult, if not impossible. The Small Business Administration (S.B.A.) closed programs which guaranteed smaller loans and expanded it’s reach to guarantee larger loans. The small business was pushed aside and left to struggle on it’s own.
Now, the S.B.A. is encouraging banks to make smaller loans by waiving fees it charges to the banks and reducing the amount of paperwork required. Sounds good! Let the small business owners line up and get the money rolling! Unfortunately, this is not happening. The fees that the S.B.A. is waiving to entice banks to make smaller loans to small business has little effect on the banks. Typically, the banks pass these fees onto the borrower and roll them into the loan itself. As for the paperwork reduction, it hasn’t happened. The banks are still requiring the borrower to submit hefty documentation.
The S.B.A. has good intentions and clearly sees the need to provide small loans to help the small local business owner. The efforts tried to date, though, have not been good enough. As the S.B.A. continues to advocate and devise a workable solution, small business owners can turn to National Business Capital to obtain the financing they need. With minimal paperwork and fast turnaround, small business can stay in business with funding by National Business Capital! Call today to learn about our many programs!