Large banks are still showing unwillingness to provide small-business owners growth capital, prompting firms to look toward smaller banks and other nontraditional sources for growth opportunities, stated CNBC.
The news source provided the example of Dave Wheeler, owner of Manzanita Outfitters in Prescott, Arizona, who struggled with funding his business and was willing to pursue any possible way to keep his company running.
"It was brutal, just brutal," Wheeler said. "I've suspended paychecks from time to time. You do whatever you can to keep the doors open."
Wheeler is just one of many small-business owners who have began seeking out potential loans from community banks. These institutions help companies stay afloat and sometimes even fund growth prospects that larger banks didn't want any part of.
Growth on the horizon despite economic uncertainty
With small banks on their side and a fresh outlook for 2013, small-business owners are optimistic, according to a recent survey conducted by Chase. Sixty percent of small firms polled expected an increase in sales, while 55 percent anticipated higher profits. The economy is not in an ideal state, and small-business optimism is a good sign. When small firms are growing, the economy is usually doing well.
"It is a good sign that we are seeing businesses remain confident about their own performance and local economy, despite facing broader economic challenges," said Doug Petno, CEO of Chase Commercial Banking. "Business leaders feel better about things they can touch and control."
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