Small business lending in California gets boost from federal government

4/12/2011

Small businesses in California will find it easier to gain access to commercial loans thanks to new funding from the federal government that is being made available to banks and lenders, the Los Angeles Times reports.

In March alone, local lenders received nearly $60 million during the first round of funding. State programs could receive as much as $168 million for small business lending by the end of the year, courtesy of the Small Business Jobs Act which was passed in September.

A number of small business owners are optimistic that the loans will enable them to take on more work, offer competitive prices and purchase new equipment.

"We can be aggressive with the price because we have cash flow, we have the money to do things with," said Joe Pinto, president of Los Angeles Pump & Valve Products. "We are not sitting there waiting to be paid."

As many as 80 percent of small business owners anticipate lending to be an issue in 2011, according to an Office Depot survey, so the new funds should alleviate some of entrepreneurs' concerns.