There are very few people who pay attention to the economic of this nation who will not admit that small businesses drive this nation economy. Knowing that, many lenders are still sitting tight on the money that they have collected from consumers as well as those funds collected from the taxpayers. Now it could be that the U.S. Chamber of Commerce has influenced them to hold-off on lending to small businesses for their own personal gains but that might be a little too conspiratorial. What ever the reason for making small business loans harder to come by, one lender with the will to stand up for the masses can change this world.
The first thing that lender will need to secure is the understanding of the Small Business Administration (SBA) that the loans they make will be guaranteed by them. If the SBA agrees and guarantee the loans at ninety-five (95) percent, then this lender will only be risking five (5) percent of their own money. This five percent could be used as the down payment requirement from the borrower which would then mean that the lender will be risking nothing at all.
The second thing that lender would have to prepare for is the repercussions that they may face from those whose idea is to keep America unemployed. They would have to be willing to lose some friends and acquaintances while this is going on. They must be willing to allow transparency and hold all those employed by them to a higher accountability. They must be willing to screen those employees like never before to insure that the name of their company can not be dragged down by unscrupulously people. They would have to prepare themselves to be inundated by those “doom and gloom” scenarios which would come in a fury once other institutions learn of what they are doing.
The third thing that lender would have to be ready for is the deluge of new applications for loans which would be submitted by small business owners looking to expand, hire, purchase new equipment or start-up. The idea that the old requirements of credit, capital and collateral would be replaced by “common-sense” lending at a time when it is sorely needed. They would have to insure that their system were able to handle a large influx of customers in a very short period of time. They would have to be ready to stand alone.
While searching for a lender willing to assist me in expanding and hiring, I learned about several small business owners who were in a much better position than I regarding credit, capital and collateral being turned down for the loan that they sought. Looking at that, I just knew that if they had been denied, I would probably be ridiculed for wasting the ink and paper filling out an application. As long as credit scores are being controlled by those who also have no reason to lend, many small business owners will continue to see their doors closed and their dreams smashed. A lender that is willing to step up and stand out would rule this economy and make a much brighter future for them, their shareholders and this nation.