Small businesses have always found this to be true. We know that this economy lives and breathes off the small business population. With small businesses currently occupying about 50% of all US citizens and being responsible for over 60% of new hires in USA, the small business district has the power to get us through this recession quicker than any other sector.The U.S. economic recovery will remain slow deep into next year, held back by shoppers reluctant to spend and employers hesitant to hire, according to an SBA of leading economists. The latest Survey shows economists have turned gloomier in the past few years. Analyst predicts weaker growth and higher unemployment than they did before. As a result, the economists think the Federal Reserve will keep interest rates near zero until at least next spring.

In the last several months when banks have been pressured by the US Government to make more small business loans, they come back and articulate that the demand for small business loans has gone down. Demand for small business loans hasn’t lessened. Credit scores might have gone down therefore the number of credit worthy business borrowers has gone down, but the amount of small business borrowers looking for a loan has gone through the roof. The government states they are having a tough time figuring out whether or not the demand is down for business loans or banks just aren’t giving them out. Small businesses and business owners are still here, hard at work, trying to make a living. These small business owners were credit worthy one year ago, are still running their businesses today with the prospect they are going to grow, and now can’t get the access to capital they need.

Requirement for business financing is going up yet there has been no thought behind how to help more small business owners improve their chances of receiving a small business loan. Small businesses today need to be prepared when seeking business funding. . A business plan, a heavy fiscal statement, and strong financials can only help the seeker. There needs to be a new way on judging whether or not a business owner is credit worthy. Yester years planning was a complete hog wash if we want to pace up in economy recovery. When state tighten spending by trimming services and jobs, the cutbacks ripple through the broader economy, causing individuals to spend less, too. The drop in state and local government spending shaved about half a percentage point off the U.S. gross domestic product in the first three months of this year. Nearly two-thirds of the economists view the states’ budget crises as a significant or severe threat to the rebound. The tax free small business loans are providing non collateral loans to keep business from diminishing. These business funds are a great source to increasing the working capital.