For the fourth fiscal quarter of 2011, the Federal Reserve is reporting that the demand for small business loans was significantly higher than in previous quarters. In fact, demand more than tripled over the third quarter – jumping from 8.3 percent to 26.4 percent. The numbers are encouraging, and may suggest that small businesses are willing to invest in themselves again, rather than just fight to stay afloat.
Since the economy reached a near-collapse in 2008, businesses have been cutting back on every expense possible. They’ve pulled in the reigns on spending, and many employees were laid off, bolstering unemployment lines across the country. However, the surge in small business loan applications suggests that businesses may be gaining confidence, which could mean more jobs in the future.
Despite the increase in small business loan applications, banks are still somewhat reluctant to lend money to businesses and individuals who have less-than-perfect credit ratings. Although loans are more widely available than they were during the recession, lenders are not doling out near as much money as they did prior to the economic downturn. Restrictions remain high among lenders, with only the most credit-worthy applicants receiving loans.
However, that doesn’t necessarily mean that that trend will continue.
After all, the Boston Globe reported that credit card issuers have already loosened their standards for granting credit cards to consumers with moderate credit ratings, and the restrictions are expected to loosen even more in 2012. If the economy continues to make progress, banks could follow suit, making it easier for many more business owners and entrepreneurs to get funding for new projects.
For more information, go to Small Business Loan at http://www.unsecuredbizloan.com/small-business-loan