Small business loans are our business here at Point Blank, so the recent news that small business loan dollars have reached their second largest total ever, second only to 2011, hasn’t been a huge surprise to us. After all, we help small companies secure financing for a myriad of needs all day every day. But, this announcement from the Small Business Administration could be a signal of some much needed forward momentum for the economy.
The huge numbers, totaling $30.25 Billion in all, are due in part to the Certified Development Company loan program which supported $15.09 billion in small business credit and other initiatives like the Small Loan Advantage and Community Advantage programs which resulted in $105.6 at the end of this fiscal year.
Only $250 million off from the all-time high in 2011, the near record indicates that the small business community is feeling renewed confidence in the state of the economy, which is news that is long overdue after the challenging couple of years that are behind us. So what does this mean for economy in general? For one, increased small business lending means more small businesses and startups, which leads to more jobs and a healthier economy down the line.
As noted by our friends over at Bizengine, small businesses mean big things for everyone:
Small businesses don’t just bring jobs either, they breed innovation. According to the SBA, small businesses are responsible for roughly 13 times more patents per employee than large firms. So, more successful small businesses could mean greater technological advancements and better products.
It’s clear that if these trends in small business lending continue, we can expect to see a small business world that is much kinder to “would-be” entrepreneurs than we’re used to, since that extra boost required to get started wouldn’t be nearly as hard to obtain.
As for us at Direct Capital, we have continued to make it a point to serve the small business community by providing the financing they need to find success. What does increased small business lending mean to you?