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
Further Reading
Extending credit to customers is riskier than ever. Whether it’s an existing customer looking for more favorable terms or a newer cli...
The collapse of Silicon Valley Bank (SVB) earlier this year could bring major changes to capital requirements for large banks. Federal Rese...
To keep your ACH payments flowing smoothly, Nacha advises businesses to update financial institution routing number validation tables at le...
If your Accounts Receivable (A/R) process still includes manual steps, you’re not the only one. Not by far. Recent A/R benchmarks hig...
B2B credit departments are steadily embracing new technology and automation. But one area where companies are steadfastly sticking to the p...
Public companies expect third-party audits to be thorough and accurate. Many aren’t getting the results they expect. The Public Co...
