Increasing Business Loan Requests
Signs of local economic improvement after a year in the Covid Pandemic started, prompted a recent poll to see if this was happening across the country. Specifically, “Help Wanted” signs appearing in store windows lead us to believe that company owners were feeling optimistic about reopening and getting “back to normal.”
From the finance perspective, hiring and business growth typically means an increased need for capital. So, we asked business bankers in various states what was happening in their areas. If more company owners were asking for money, that would indicate true economic optimism. The exact question was:
Has economic reopening lead to an increase in business loan requests? Or are things still slow in your market?
81% said, Yes – Loan Requests are Rising
This is an important signal for all of us, so here are some ideas to consider.
Business Owners – This means that if you’re not already gearing up, your competition may be ready before you to take advantage of new opportunities. You may want to consult with your business advisors and plan a growth strategy. If you need a recommendation, let us know.
Business Advisors – This indicates you’ll need to help clients prepare to navigate the “new economy.” Depending on the industry, it could mean anything from new sales and customer service strategies to new operational procedures.
Business Bankers – Get ready for even more people asking about loans for their company. Most of them will not fit with SBA’s Paycheck Protection Program (or they would have come already). Will your bank have stricter criteria for regular business loans? If so, how will you help clients that do not meet loan criteria? If you need assistance with this, please let us know.
Everyone – Soon we may have more options and opportunities for business and recreation than we’ve had for the past year. How will you support economic growth? We’re sure the small businesses in your area would welcome you as a partner or customer!