Small business lending still chief issue, says economist

6/3/2011

While many entrepreneurs are eagerly planning for growth as the economy continues to recover, small business lending continues to be an issue that plagues as many as 30 percent of company owners, says Gallup chief economist Dennis Jacobe.

Jacobe recently testified in front of a congressional committee, urging them to take action and improve small business lending, MarketWatch reports. The Gallup economist was also joined by William Hall, who testified on the behalf of the International Franchise Association.

"We think that small business creates six out 10 jobs in the country," Hall told the House Small Business Committee. "There are a lot of jobs that could be created that won't be because we don't have access to the credit."

Jacobe added that 40 percent of small businesses are hiring fewer employees specifically because financing is so hard to come by.

If entrepreneurs find it difficult to obtain bank loans, then they may want to consider alternate sources of funding, such as small business credit cards or angel investors.