how are small business loans structured
how much does a business loan cost
Myth 4: "Our membership and the community wants this service and we’ll be ‘swamped’ with business".
does the government give business loans
They employ roughly half of all Americans and account for more than 60 percent of net new jobs. 1 Their ability to generate new jobs depends in large part on access to credit. In the wake of the recent recession, small businesses’ demand for credit waned as they faced the more immediate challenges of weak sales and heightened business uncertainty. Now, as the business outlook improves, credit demand from small businesses is beginning to strengthen. However, access to credit remains a challenge for some. Lower real estate values and the cumulative effects of lower revenues have damaged small businesses’ credit capacity, and banks’ lending standards—although no longer tightening—loosened only marginally in 2010. In addition, as evidenced by high levels of problem banks, the recession has affected the ability of some banks to lend as they focus on correcting existing problems. In response to these issues, policymakers and regulators continue to actively seek ways to facilitate the flow of credit to small businesses. On January 13, 2011, the FDIC hosted a forum, “Overcoming Obstacles to Small Business Lending,” to identify credit related issues facing small businesses and potential solutions. 2 The forum fostered communication among policymakers, regulators, small business owners, lenders, and other stakeholders. The forum featured leaders in the government and private sector, including Spencer Bachus, Chairman, House Financial Services Committee; FDIC Chairman Sheila C.