Don't bank on the SBA for your loans right now
Can’t get a loan? No worries. At least the Small Business Administration is there to help … isn’t it?
Probably not. In recent months, more and more companies’ lending requests are being shot down by the SBA.
For Oct., overall SBA loan volumes were down 50% from Oct. 2007.
And this trend is expected to continue for a while. Critics feel the giant Congress bailout package will take even longer to trickle down to small businesses and provide relief.
The reasons for the decline are plenty: lower demand, increased lending standards and declining credit status of applicants. Lenders are also scaling back loans because of losses in their SBA portfolio and fear of a decrease in collateral value.
And most recently, lenders and banks have been unable to sell SBA-backed loans to other businesses on the secondary market.
So if you were counting on the SBA for funding, now may be the time to explore less-traditional loan options, including, private lenders, credit unions, microlenders and factoring.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
Further Reading
The 2022 End-of-Year Sales Tax Rates and Rules report by tax technology solutions provider Vertex Inc. has both good news and bad news for ...
A costly and unnecessary climate change reporting rule for the banking sector, favored by European elites, won’t go into effect state...
The U.S. Small Business Administration (SBA) may be the best option for securing a loan these days. Prohibitive interest rates and tighter ...
Fully integrated, automated payments! A dream goal for many CFOs and controllers. Imagine how much more mission-critical work finance staff...
To keep your ACH payments flowing smoothly, Nacha advises businesses to update financial institution routing number validation tables at le...
Plenty of financial gurus lauded the Federal Reserve for hiking interest rates and its stated goal of ratcheting down inflation. After mult...
