A recent article in the Orange County Register revealed business financing increased throughout the region in the last few months of 2012.The source reported lenders handed out 385 loans to Orange County businesses, thanks to a Small Business Administration (SBA) program that went into effect the last three months of the year.
The loans added up to $220 million, a huge increase over the numbers seen in 2011. This 29 percent increase was one of the highest seen in any area of the country and came as a surprise to many who expected the numbers to come in flat.
In the past several years, company leaders have held off on obtaining funding, in part due to the uncertain economy. As markets have slowly improved and business owners have taken advantage of new opportunities, lending has crept up, giving entrepreneurs more chances to invest in new products, expand and increase their operations both domestically and overseas.
As 2013 takes off, more business owners may seek SBA loans to expand their operations or obtain startup funding. These loans can be easier for some new companies to obtain, making them highly desirable for those on the lookout for expansion capital. However, these entrepreneurs must have an understanding of the requirements behind these financing options and ensure they are able to qualify for and repay the loans.
When searching for opportunities to obtain a loan, companies may want to consider not only looking into SBA loans but also working with smaller financial institutions to address their other funding and banking needs. Smaller enterprises often have a need for more customized solutions, which a small or mid-sized bank is sometimes better equipped to handle, as opposed to large banking operations.
Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.