Banks are now offering more loans, but are small-business owners taking them?

Coming across business financing has been challenging in the past for firm owners, but now lending opportunities are becoming easier to come by, according to Business on Main. However, as banks are more willing to hand out funds to small-business owners, fewer companies are ready to take on loans that they will have to pay in the future. The news source gathered insight from lending experts who talked about the current state of small-business financing opportunities.

Banks have spare capital
The economy has caused banks to be picky with their funds in the past years, but now they are more willing to give out loans. As time have changed, they are now seeking out potential firms that may need funding, but many enterprises aren't interested. One expert weighed in on what is currently going on.

"The banks have plenty of money to lend," William C. Dunkelberg, chief economist of the National Federation of Independent Business, told the magazine. "In fact, the excess reserves at the Fed are at an astounding all-time high. With a capital reserves requirement of 10 percent, banks look to invest the other 90 percent. The problem is, no one is coming and asking for loans."

Small businesses can spur job creation
It has long been said that small companies are the lifeblood of the economy and if they are able to create jobs, the business environment can improve. According to research from the Accion U.S. Network, 43 percent of respondents are ready to grow their firm by seeking out a microloan in the past year.

"Small business owners are key players in community change and collectively, they have the power to spark significant economic growth," said Gina Harman, CEO of the Accion U.S. Network.

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