Entrepreneurs are now using microfinancing more than ever as they try to get the capital they need to create a corporation without taking out traditional bank loans, according to BusinessWeek.
Two River Community Bank in Middletown, New Jersey, says it has formed an SBA lending division to help support new small business formation and job growth.
Credit union activists are trying to encourage lawmakers raise the credit union lending cap – a move that could allow credit unions to give out $10 billion in additional loans for business formation and other uses.
A recent wave of fraudulent loan scandals has targeted small business owners who may have been denied credit at other lending institutions as they try to create a corporation.
In a trying economic climate, deciding where to get a loan can be tricky for startup business owners. After all, not all funders are equal.
The Small Business Administration reports that small businesses are predicted to lead economic recovery as SMBs have created 64 percent of net new jobs in the past 15 years. Now, the administration is making an effort to spur business formation – and job generation – with an appeal to increase credit for small businesses.
Some entrepreneurs think the brilliant business idea is all they need to make it big. Unfortunately, there are some logistics that can keep even the greatest concepts from launching into successful businesses – like credit scores.
President Barack Obama asked banks to help finance small and starting companies last year as experts predict these companies will drive economic recovery. Now, it seems a number of major financial institutions are stepping up to help business formation by offering funds to SMBs in 2010.