Timid Commercial Loans Send Small Business Owners to Local Banks

Despite the fact the economic times are slowly righting themselves, business owners are finding lending institutions with tight purse strings. In fact, CNN Money points out a deciding fourth quarter to be played out before we see and real relief. However, Ocala reports that small business owners are having a much better time securing commercial loans from local area banks. It seems as thought one needs the other more now than ever.

Commercial Loans in Stormy Weather
It seems as though the Federal Reserve is just about the only gung-ho lender in a skittish market, big businesses and banks are quickly finding out. Despite the fact that several key indicators are pointing in the right direction, few other sources for venture capital funding are following the Feds lead.

And it doesn't look as if the uneasiness to lend to big business will abate any time soon. According to CNN Money, 'The fourth quarter is the most critical period for lending, as financial institutions are hesitant to lend with the risk of taking a hit to their balance sheets at the end of the year'. No doubt that the New Year will spin off the way markets perform late in 2008.

Small Business Owners Think, and Borrow, Locally
The good news is that small business owners and local community banks are striking up some beneficial relationships out of the spotlight of private companies and multi-million dollar funding requests. A drop in the request for commercial loans means potentially good opportunities for small businesses.

According to Ocala, 'The problem is, in a down economy, fewer businesses are a good risk and fewer businesses are looking for loans. For those that are, the lack of competition for loans provides an opportunity for a good deal on rates'. And this bodes well with small business owners looking for commercial loans that they, and their business, can live with.