8 Plus 1 Things You Need To Know Right Now (That’s 9) in Small Business News
The job market has a savior and its called small business. According to a story in Fortune, an ADP Research Institute report showed that 81% of all new private-sector jobs in January were at companies with less than 500 employees. Back in September 2010, only 38% of new private-sector jobs were at the same sized companies. What’s going on here? Well, experts are saying that easier access to capital is helping entrepreneurs launch new ventures and fund expansions at small businesses. As much as lending tightened to small businesses post crisis, credit are starting to ease up and the sector is reacting to it and helping the economy in the process.
SBA loans to women-owned businesses reached almost 28% of all dollars funded through the 7A and 504 loan programs in 2014, on loan volume of $6.3 billion. This is in line with total numbers since, according to Coleman Report women own about a quarter of all businesses in the U.S. What does this mean to lenders? Since this demographic is growing faster than others in the economy, it might represent a growth area.
Business lending matched record levels at Credit Unions in 2014 according to CreditUnion.com. The industry lent $12.3 billion both last year and in 2013. Business loans to its members are making up 6.4% of a credit union loan portfolio, which is a huge increase from just 10 years ago when that slice of the total was only 2.2%.
This surge is sure to be fueled by the new rule announced recently where a portion of SBA small-dollar lending will not count toward a Credit Union’s regulatory ceiling capping business lending at 12.25% of total assets, according to MiBiz.com.
8 Plus 1 Things You Need To Know Right Now (That’s 9):