Jump to Main Content
USA flagAn Official Website of the United States Government
SBA News and Views

Blogs.SBA News and Views

Register

Business Lending Showing New Signs of Strength

Comment Count:
4

Comments welcome on this page. See Rules of Conduct.

Business Lending Showing New Signs of Strength

By Karen Mills, Former SBA Administrator
Published: March 5, 2012 Updated: March 12, 2012

Over the past three years, the Obama administration has made it a top priority to increase access to capital for small business owners across America.  When I came to SBA in early 2009, small business owners would say to me, “I need a loan to survive.”  Since that time, SBA has worked hard to provide small businesses with access to capital – even during the depth of the recession.  Thanks to the Recovery Act and the Small Business Jobs Act, SBA had a record year in FY2011, supporting more than $30 billion in small business lending across the country

Now we’re getting encouraging news that business lending is showing new signs of strength.  You may have seen that the FDIC recently released data showing that banks had their biggest increase in business lending in four years.   And the Wall Street Journal recently wrote “At Last! Banks Are Making New Loans.” Lately, small business owners are no longer telling me they’re fighting for survival; they’re talking about needing a loan to take advantage of a new opportunity, hire another worker or buy more inventory. There are additional signs that more money is getting into the hands of business owners.  The Department of Treasury began receiving reports from the banks that participated in the Small Business Lending Fund (SBLF).  Already these financial institutions, mostly community banks, have increased their small business lending by $3.5 billion.  And, the 27 states participating in the State Small Business Credit Initiative are also putting the funds to use, supporting lending to small businesses and small manufacturers.

Of course, we all know that even though lending is on the rise, there’s still more to be done.  That’s why SBA is working hard to continue filling gaps in the market place.  For example, we’re working with some of the largest lenders around the country, who last year committed $20 billion for small business lending over the next three years.  We’re also working to streamline our processes and make it easier for small businesses to benefit from our programs.  We recently revamped the CAPLines program to provide a working line of capital to certain businesses, including manufacturers and government contractors.  We also created new programs, such as Small Loan Advantage and Community Advantage, which incentivizes lenders to make small-dollar loans and opens up SBA programs to new lenders, such as CDFIs.  

We’re confident that this is just the beginning of the momentum small businesses need to keep growing and creating jobs.  Everyone at SBA recognizes that this is a critical time for small businesses, and we’re committed to helping them get the financing they need so they can lay the foundation for an economy built to last.

 

About the Author:

Karen Mills

Former SBA Administrator

Karen Gordon Mills is the Former Administrator of the U.S. Small Business Administration. The SBA helps both Main Street and high-growth small businesses get access to capital, counseling, federal contracts, disaster assistance and more.

Comments:

Thanks for this
I look forward to live and work in America. This is the income of my family. This post was edited to remove a link. Please review our Community Best Practices for more information about how best to participate in our online discussions. Please note that Community members may include only one (1) link in their signature line. Thank you.
Here's yet another instance of deceptive reporting from the lame stream media. Reuters claims small business loans are up and there's a lot of optimism for recovery. But that simply can't be if Bloomberg Business is to be considered. Lucrative small business entrepreneurs are being rejected for loans, and they're looking to foreign shores to survive. Source of article: Lack of small business loans driving entrepreneurs to China
Thanks for this article

Leave a Comment

You must be logged in to leave comments. If you already have an SBA.gov account, Log In to leave your comment.

New users, Register for a new account and join the conversation today!