Small Businesses Will Benefit From New Loans

0 Comment(s) | Posted Dec 16, 2009 by Peter Wylie

Peter Wylie

Good news for small business owners who need to raise capital in the New Year.  Bank of America announced today it will increase the amount of its loans to small businesses by $5 billion in 2010.  The additional capital could provide security for many small business owners pinched by the current deep recession.

Being able to borrow more freely also could lead to more job creation and investment in increased inventory or small business marketing.  Small business owners have been particularly hard hit by the difficult borrowing conditions, as available capital went to short-term expenses, at the expense of preparation for the future.

Long-term economic recovery requires small businesses—considered by many to be the “engine” of the US economy—to begin hiring and spending again.  Many of our customers are small businesses, so we understand the impact the difficult lending environment has had on day-to-day operations and long-term planning.

We’re hopeful that the increased lending by Bank of America may lead other large banks to ease restrictions on small business fundraising, to fuel a wider economic comeback.   Small business marketing ideas will be able to be deployed more readily with newly available capital, enabling small businesses to attract more customers and grow their revenue.

Additional investment also will allow small businesses to spend on revitalizing their community outreach to meet the new expectations and behavior of their customers.  Small business clientele increasingly go online to research products and services, so any marketing investment should focus on social media and online efforts to reach customers.

Filed under: Entrepreneurship, Small Business, Start-Ups