Small businesses and startups have earned a significant role in the U.S. economy, creating tens of thousands of jobs across the nation and assisting in community growth.
There are currently several leading trends in the sector. According to Fox Business, these include:
- SBA Boosts Small Business Lending
The Small Business Administration had its second-highest lending volume level in 2012, reaching $30 billion in loans.
- Incorporation of Technology in Small Business Lending
Online platforms have been launched to enable small business owners to compare and apply for loans over the internet, instead of visiting numerous banks to compare deals.
- Crowdsourcing Campaigns
“Crowdsourcing”, the use of social media to encourage friends, acquaintances and other lenders to donate modest amounts of money to small business owners, became popular in 2012. Legislations were even passed in order to ease this process and boost capital.
- Alternative Lenders
Big banks, small banks and credit unions all have low approval rates. This has opened to doors to a whole new approach to lending, including cash advance companies, accounts, receivable financers, factors and micro lenders.