SCORE Ask an Expert Blog

Poll: Do Loans Equal Increased Jobs?

February 2, 2010

If You Had Loans Available Would You Be Hiring?

I received a copy of a news release from the SBA Georgia District Office stating that their loan volume in 2009 increased by 83% over 2008. I don’t have 2006 0r 2007 figures, but my sense is that even with this substantial increase, 2009 levels are still below previous lending years.

There have been numerous articles and interviews the past year lamenting the lack of funding available to the small business community. In my workshops, entrepreneur classes and business roundtables that I facilitate, the most common complaint that I hear is that banks are not making loans to small business. I concur with this assessment, but wonder, if you had loans readily available to you, would you be hiring new team members or how would you use the proceeds to grow your business?

Steve Bloom, SCORE Atlanta
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Filed under: Finance,Growing,Human Resources,Starting

Tags: employment, hiring, hr, jobs, lending, loans

4 Comments Leave a Comment

1. Greg Magnus | February 3, 2010 at 8:09 AM

Steve,
Great question. Downturns in the economy are traditionally excellent times for capturing market share. The competition’s defenses are down, un-informed business owners pull back on sales/marketing and cut back on staff.

It is a lot like going to a ball game where the stands are half full. And, the usher says, pick any seat. My guess is that the well-informed small business owner would choose to hire more staff if the funds were available; chomping at the pit.
2. Steve Bloom | February 3, 2010 at 10:38 AM

Greg, Your comments are “right on” small business needs to assess is the current economic conditions, CRISIS or OPPORTUNITY! I’m always a proponent of the latter, opportunity as you stated, is when the competition is struggling. I have clients that have great opportunity but need working capital to fill orders and the banks aren’t playing the game
Steve
3. Donna Taylor | February 4, 2010 at 4:31 PM

Small businesses are the backbone to rebuilding our economy. If our banks took the time to realize this and lend money to more small businesses thus, putting a dent into the high unemployment rate that our nation is facing. Due to our down slide in our economy, credit has been affected and our banks need to notice this and to separate a person personal credit from their business credit.

SBA stresses the importance of a business plan but when the banks aren’t lending then the planning is halted and survival begins. We have tried on numerous occassions to get funding to increase of staff with no success, so yes we would hire more six staff members and new equipment.

Thanks Mr. Bloom for such a good question.

Donna
4. Steve Bloom | February 4, 2010 at 5:29 PM

Donna, I appreciate your insights and understand your frustration. I’m not confident there is a quick or easy solution to opening the faucet for small business loans, but if we continue to to discuss the problem maybe lenders will get the message. One possible solution is to request a meeting with the Director of your SBA District office to discuss your current situation and request assistance in identifying a participating SBA lender. With 90% guarantees of loans by SBA and no fees to borrowers more doors should be opening.

Stay in touch and keep me informed as to the results of any contacts with the SBA.

Steve Bloom

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