Although we often hear that small businesses are suffering from a lack of access to credit, at Ridgestone we have seen the Small Business Administration (SBA) work to help small to midsize businesses with access to capital.
The SBA knows that small businesses are the engine of our economy. In recent years, small and midsize businesses have been responsible for nearly all the job growth in the United States. For this reason, the SBA has expanded product lines and made it easier for businesses to participate in SBA programs. In fact, the SBA lent small businesses more than $30 billion in 2011, the most ever. This is because of the Small Business Jobs Act and increased loan guarantee levels and fee waivers for SBA’s popular 7(a) and 504 programs, which accounted for $25 billion of the SBA’s record lending.
At Ridgestone, we have personally witnessed the difference SBA loans can make for small to midsize businesses. We closed over 200 SBA loans in fiscal 2011, making our bank the 10th largest SBA lender in the United States.
We want to remind business owners that there is credit available, but business owners need to know where to look. FDIC data shows that community banks are responsible for much of the recent commercial lending across the U.S. We also suggest that business owners look for banks that work extensively with the SBA. Participating in SBA programs makes credit more available to businesses and less risky to banks. And that benefits the business, the bank, and the entire community.