Last week Karen Mills, SBA Official, announced that the SBA hit an all-time record in small business lending this fiscal year, with over $30 billion in lending, supported to over 60,000 small businesses. This signals a record year in the nearly 60-year history of the SBA itself.
While this news should signal the rise of small businesses looking for capital, the media might have you believe otherwise. There is a long standing debate going on as to whether or not there is real business demand for loans. Some claim that businesses DON’T actually want money to grow in this slow economy. On the other side, business owners cite a lack of supply – that banks do not want to lend money to small businesses.
We at BoeFly have seen strong growth in the amount of borrowers seeking loans on our marketplace. Additionally, we have seen 62% increase in lenders signing up to access this demand. Combining these statistics with the fact that the President is presenting Congress with the American Jobs Act, hoping to bring dollars back in the pockets of small business owners, we should be hopeful for a drive in economic growth.
Let’s also consider the recent survey data from the International Franchise Association (IFA) – that the number one challenge facing franchisees is access to capital. This survey clearly expresses the view that businesses want capital to start-up, expand and remodel. Combining this survey, with the SBA record numbers and BoeFly’s own growth stats, confirms our view that there is no demand problem today; nor is there a supply problem. The problem instead is that borrowers needing capital aren’t finding those lenders looking to lend.
And while the debate continues, we’ll focus on what we do at BoeFly – matching borrowers seeking capital with lenders seeking to make new loans.
For more info on how to get a loan for your company or start-up check out our top 5 tips on getting a business loan.