One-third of small business owners still have trouble getting commercial loans

5/8/2011

Funding is still a top challenge for many American small business owners, with one-third reporting they have trouble getting approved for commercial loans, according to a the new Wells Fargo/Gallup Small Business Index.

Other findings from the report indicate that small business confidence has plateaued. While entrepreneurs aren't overly negative about the future of the economy and their businesses, the score now sits at zero, indicating neutrality.

"Weaker U.S. consumer spending in the first quarter, along with a spike in energy prices, is likely behind much of the slide in small business optimism since January," said Dr. Scott Anderson, Wells Fargo senior economist. "On the bright side, for the second quarter, optimism remains above the negative territory we experienced throughout 2009 and 2010."

If obtaining funding is a challenge, the San Francisco Chronicle recently suggested entrepreneurs keep their day jobs while starting a new company. This gives lenders more confidence that the entrepreneur will be able to pay back the loans rather than defaul on them.