SBA looking to make small businesses more competitive

As the primary source of private employment, small businesses carry much of the economy on their shoulders. Through SBA loans and other initiatives, the Small Business Administration (SBA) is looking to increase visibility of smaller entities to help boost the stagnant economy.

According to SBA leader Karen Mills, one of the best strategies is to get small business lending back on track. She pointed out in an interview with The Associated Press that this kind of lending has increased among big banks and credit unions in recent years, but the underlying issue of getting the tools to acquire loans and manage money for SMBs is still not perfected. Online marketplaces like Boefly can get small business loan seekers in touch with a variety of lenders by using a single application, but not all owners pursue this sort of option yet, either because they don't know how it works or just aren't aware it exists.

Stacey Lawson, co-founder of the Center for Entrepreneurship and Technology at UC Berkley, wrote in The Huffington Post that business loans and other sources of capital are primary resources for helping small businesses get through tough economic situations, so improved access to them is imperative. While banks and lenders are doing more, Lawson said more business owners are reporting poor credit situations and worsening interest rates, making continued operations difficult.

"[Businesses need to] work with a counselor on your business plan. Make your [loan application] package credit-ready," said Mills in her AP interview. "Small business owners are very busy, and they may or may not know about resources that are in their vicinity … that they can take advantage of."