Small Business Credit Markets Improving?
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It's been tough for small businesses to get funding, especially from traditional sources. But, there may be good news around the corner. Entrepreneur.com writes that small business lending is positioned to increase. With increased credit, small businesses will be able to make the investments necessary to growth their businesses and create more jobs.
Carol Tice of Entrepreneur.com writes,
If you are looking for a new money source, banks are looking better than they have in a long while. Community banks got access to $30 billion in new federal funding for small-business loans this summer, and the money is starting to trickle out to entrepreneurs. If you're a small business interested in exporting, $2 billion in new funding targeted at helping small businesses sell abroad was approved earlier this year.
In addition, banks started easing their credit requirements for loan approval earlier this year. Some banks announced small-loan programs aimed at small business. For instance, Citi committed $200 million to small-business lending through its Communities At Work fund and by November, $60 million had been loaned by Citi's microcredit partners. JP Morgan Chase says it did a whopping $10 billion in small-business lending in 2010, up 40 percent from their lending to the sector the previous year.
In all, the lending wheels are starting to turn again, even if they're turning slowly. It's still a far cry from the small-business lending volume of 2007, but better than it was in '08 and '09.