Small Business Financing News: Working and Growth Capital is Readily Available Despite Credit Crunch

According to the Federal Reserve, $40 billion worth of loans to small businesses have disappeared in the last 2 years. A recent CNN article reports that loans to small businesses have reportedly dropped from more than $710 billion in the second quarter of 2008 to less than $670 billion in the first quarter of 2010.

After the recent debacle in the credit markets, loose credit is no longer readily available as banks implement more stringent criteria to secure loans. The challenge for many businesses is not so much a "credit crunch" but overcoming unrealistic borrowing expectations.

It’s very similar to the bubble burst in the housing market where we’ve had to firmly reset our expectations of the residential real estate market borrowing possibilities. While banks are returning to more prudent small business lending practices based on realistic asset value and ability to repay debt alternative small business lenders have always focused primarily on assets.

With the widespread tightening of lending standards, businesses who aren’t a good fit for marquee lenders need to look outside the bankable box to these private investment banks who are readily available to help businesses secure financing for appropriate working and growth capital.

If your business currently doesn't fit a bank's lending risk profile, you may be interested in learning more about how to secure Alternative Financing and Small Business Loans for Working and Growth Capital.

To learn more about how your business can secure the funding it needs, visit US Capital Partners, Inc. at or call (415) 882-7160.