For a long time, SBA loans have been one of the best options available to small businesses for fueling their growth and expanding their companies’ level of success.
In fact, the Small Business Administration approved more than 60,000 loans in 2017, and those loans totaled $30 billion in financial assistance to small businesses. Recent changes in the area of SBA loans to small businesses holds promise that these figures will increase even further.
Increasing role of large banks
As the SBA program marks its 65th anniversary, some fairly significant changes are occurring with regard to the banks which are involved in extending loans to small businesses. In years past, large banks opted primarily to work with huge corporations, simply because they could make more profit from larger loans to these business entities.
That left the market open to smaller banks, which filled the gap on providing financing for an SBA loan. Now however, those larger banks are entering the fray to a much greater degree than ever before, and are also becoming involved in extending loans to small businesses through the program. Because there are so many small businesses in need of loans, the total volume of loan activity for these small businesses can be equal to or greater than the profits which might come from working with large corporations.
The shift toward microloans
Another change which is occurring in the area of SBA loans, is a shift toward greater applications for microloans. While the flagship loans for the SBA remain the 7(a) loan and the 504 loan, a great many more new companies and startups are seeking financing through microloans. The maximum amount available through microloans is only $50,000, but this is still sufficient capital for a number of small business to get started, and to attempt to make it through the early years of business.
Looking for an SBA loan?
At Capital Connex, we have worked with many small businesses desiring SBA loans, and we’d be happy to work with your business as well. Contact us with any questions you have, or to start work on your application for an SBA loan.