SBA: SMBs are optimistic, but funding is still a challenge

5/10/2011

While many small businesses are on the fast track to recovery after the economic recession, small business lending is still an issue for some. The U.S. Small Business Administration's Marie Johns recently said that many entrepreneurs are optimistic about their companies' futures, regardless of access to funding.

Speaking at a training program dinner in San Antonio, Texas, Johns explained that small businesses were hit the hardest by the recession, but they remained resilient in the face of challenge. As a result, they are now responsible for creating two out of every three new jobs.

"Small business will be the answer to our future economic needs. That's where the jobs will come from," local publication My San Antonio quotes Johns as saying at the dinner.

She urges financial institutions to make it easier for small businesses to acquire commercial loans, which has been a challenge through recent years.

Entrepreneurs starting new companies may also find more luck acquiring funding by opening a micro-business. According to the American Express OPEN Forum, these businesses usually have low startup costs, making it easier to get commercial loans.