Think SBA lending first
As the Grand Valley economy begins to come out of the recession of the proceeding years, one of the things that businesses will need is the capital to grow. And while obtaining financing is indeed one of the most difficult obstacles a business will have to overcome, the SBA continues to create ways for businesses to access the much needed capital it needs for the future.
“The current administration funneled a lot of dollars into the SBA and its programs to help in the current recovery,” says Pat Berry with Small Business and Finance Corporation in Grand Junction, “And SBA programs allow business owners to borrow at longer terms and lower down payments while allowing the banks a government guarantee on a part of their portfolio, which keeps the government regulators happy.”
The availability of SBA financing has helped many businesses weather the storm of the recession while those businesses await the economic confidence needed to grow once again. But as that confidence continues to grow, the low cost of SBA financing can certainly encourage more positive growth. “No business will borrow money if it doesn’t think it can repay it, regardless of how cheap the funds are,” says Mike O’Donnell of Colorado Lending Source, “But with growing confidence and the current low cost to borrow, well positioned small businesses should seriously explore financing opportunities for 2012.”
One opportunity is the SBA 504 loan that allows companies to purchase, improve or construct real estate or acquire large equipment for their businesses. Additionally, other SBA programs address needs for lines of credit, business acquisitions and many other business opportunities.