The national economy is getting back into the swing of things and a number of recent surveys have shown small business owners are increasingly optimistic about their own business prospects. Yet while many are confident, entrepreneurs face a number of hurdles in trying to secure financing – particularly when turning to a bank for getting a small business loan.
The concerns of small business owners were recently brought to Capitol Hill when lending and access to capital was discussed at a Treasury Department seminar, The Washington Post reported.
The subject was broached by a panel of business owners, federal monetary officials and bankers. Those from the financial services sector contended banks haven’t ignored small businesses. Some cited National Federation of Independent Business data that indicated difficulty in finding a loan has decreased, but others were less confident about big-bank lending to smaller organizations.
“I’ll be honest, this is not an area where, when you go out and talk to the world, you hear the same thing,” said Gene Sperling, director of the White House’s National Economic Council, according to the Post. “Small businesses feel they are absolutely being denied the credit and capital they need, and large banks tell you they are looking for every small business they can find.”
Additionally, a representative from the U.S. Small Business Administration offered up statistics that show outstanding small business loans have fallen 17 percent from 2008, translating to a drop of around $123 billion in small business loan money.
It’s not only big banks that have seemingly become less of a small business lender, but also credit unions, which entrepreneurs have turned to in absence of action from larger financial institutions.
Bloomberg Businessweek reported on the seemingly trending drop in credit union approvals for small business financing.
Small business owners left without many avenues of access to working capital can consult with National Funding, an alternative lender that specializes in offering credit for small business owners and equipment leasing.