In a recent blog post, she talks about how the Federal Reserve is reporting that big banks have finally began easing their credit standards for small business loan applicants because...well, they need the business.
After two years of a lending standstill, banks are desperate to get back to earning interest on their money. They are finally getting a little more flexible on the creditworthiness they need to see from candidates like you.
Interestingly enough, the volume of loan applications is still fairly low - which means that many who applied for loans in the beginning of the downturn have given up on banks for funding. But such ones are being encouraged to try again.
In her blog post, Carol reports that a recent study showed that banks are approving just over half of collateral-based loans. So, if you have collateral of any type, you have a 50% chance of getting approved. But even without collateral, your odds of being approved are greater than before.
Even better, just recently, President Obama's $30 billion funding bill for community-bank lending has been approved by the Senate. This bill, expected to easily pass the House, will help community banks make loans to small businesses. This is another great reason to apply again now!
The article is correct. I needed a credit card for business only. Instead of using traditional banking. I decided to use the credit union. I think a lot of people have abandoned the banks because of the treatment they had been given. I hope we can get back on track. This is good news.
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