The Small Business Lending Fund wasn't the most successful program to get small business loans into the hands of entrepreneurs – the program ended after distributing less than one-third of the total money allocated to it. As Utah Business magazine suggests, financial institutions are being pressured by the government to be more conservative with their lending habits.
Federal regulators are encouraging banks to increase capital and reduce troubled loans and other real estate owned. Meanwhile, borrowers are not as willing to take additional risks given the wavering economy. This creates a lending nightmare for entrepreneurs looking to open up shop.
"For businesses seeking credit, reduced lending means reduced ability to take advantage of growth opportunities. It also means that applicants must meet higher standards in order to qualify for loans, particularly those applicants seeking to finance non-owner-occupied construction and land acquisition or development," the source suggests.
This doesn't, however, mean that entrepreneurs such as franchisees are out of luck. There are several nontraditional methods they can use to get the funding they need, even when the franchise loan marketplace isn't in their favor.
Regardless of whether you're a small business owner or want to become one, BoeFly.com can help you access the best small business loans. BoeFly.com gives business borrowers secure access to more than 1,500 lenders – without having to go from bank to bank.