Business Loans Still Sluggish

min read
slow-loan.jpgThe House Committee on Small Business today held a hearing on the state of credit for the small business community. Chairwoman Nydia M. Velázquez, a congressional Democrat from New York, stated that despite stimulus funds and loosened rules for U.S. Small Business Administration-backed loans, credit for Main Street business is still moving slow.

"From the start-up in Silicon Valley to the mom and pop restaurant on Main Street, small businesses everywhere are struggling to find the capital they need to keep their doors open," Velázquez states. "While the Recovery Act took important steps to help fix the credit markets, entrepreneurs still can't find the loans they will need to get the economy moving forward again."

Her office states that, despite more liberal guidelines for lending, small business loans backed under the SBA's most popular program, called 7(a), are lagging $5 billion below last year's levels. She states that the agency has been slow to implement new congressional mandates and that there will be likely be additional oversight by lawmakers.

"Eight years of inept management and underfunding have come home to roost at the SBA, preventing the agency from stepping up when we need it the most," Velázquez said.
 

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur