Upswing in small business lending on the horizon

2/14/2011

Small business lending practices are set to relax even further in the future, according to a recent report from the U.S. Small Business Administration's Office of Advocacy.

Financial institutions may tighten up a little bit in the short term, but the SBA fully expects that entrepreneurs will have greater access to loans in the near future.

"Businesses and lenders continued to exercise caution in borrowing and lending through 2009 to 2010," Winslow Sargeant, the SBA's chief counsel for advocacy, said in a statement. "As the economy improves, this study, through its state-by-state display of lender performance, can help  both small business borrowers and lending institutions see where small firms are beginning to find the capital they need."

Loans under $100,000 are beginning to stabilize, dropping only 1 percent in the 2009-2010 period compared to the 5.5 percent from 2008 to 2009.

With entrepreneurs gaining greater access to commercial loans, they are now able to focus on expansion rather than survival. Small business owners may want to consider expanding abroad, as President Barack Obama intends to support small company exporting through new programs.