Look here, small business owners!
The federal program for small-business lending is getting a makeover and you will benefit.
The Small Business Administration (SBA) is simplifying loan requirements and using automation to speed things up. But that's not all - they're also inviting and offering nonbank lenders to join in on the lending potential, as of August 1st.
What does this mean?
More options and more opportunities for rural, veteran, women, and minority-owned business owners. The SBA has essentially teamed up with a broader network of lenders, making it a breeze to access the funds you need. Plus, they've simplified the guidelines for lenders, giving you more credit-worthy options.
What are the changes
Simpler Rules, Trendy Lenders: The SBA is making things easier for those fintech firms and nonbank lenders to join the lending party. So, if regular banks weren't too keen on giving you cash before, now you might have more options to get the money train rolling.
More Lenders, More Fun, More Worries: With these changes, we're getting new lenders in town, but some folks are a bit worried they might make riskier loans that could go belly-up. We'll have to keep an eye on things and make sure they don't go overboard with loans they can't handle.
Yay and Nay for Borrowers: On the one hand, getting financing might be a bit easier for young and growing businesses. But on the other hand, some fees might go up, so watch out for those costs. Those who are less experienced or cash desperate may make some poor decisions without proper guidance from an experienced advisor.
What do you takeaway from this exciting news?
If you’re in need of capital, it’s time to dive into the lenders (fintech firms and nonbank lenders) to see if they can offer you a smoother and quicker loan process. But, be smart! Read, re-read and discuss the terms and conditions with those who mentor, guide and advise your business decisions. Make sure you understand all the terms and conditions they throw at you. These are avoidable surprises.
You’re the boss of your business, so make sure any loan you take fits your needs and makes financial sense. There are options available. Stay sharp and stay inspired to grow.