The driver of our economy – small business – is beginning to see much needed cash infusions.  Lending is up 34% to small businesses this year, over 2009 figures.  The big three lenders – Wells Fargo, Bank of America, and JP Morgan have increased lending from $9.3 billion to $12.3 billion.  While still below the numbers we would like to see, this is a major improvement.

As interest rates continue to drop due to this second round of quantitative easing in the amount of $600 billion from the Federal Reserve, we expect to see a continued rise in lending.

Supplementing the Fed’s stimulation is the new changes to Small Business Administration (SBA) lending guidelines.  Previously, the owner had to be the occupant of the property.  This eliminated many “passive income” businesses from receiving lending.  Businesses such as self-storage warehouses didn’t qualify.  New changes to the guidelines allow for these uses.  Additionally, for applications during the month of November, federal stimulus funds are available to pay the borrower’s SBA fee.

About the Author:
Michael Blount Jr is a Realtor and the Broker of Blount Properties, living in The Woodlands, TX.  Michael is knowledgeable in both residential and commercial real estate and studies the market and trends to better serve his clients.  Michael serves the greater Houston metro area.  For more information – visit www.BlountUSA.com or search for Blount Properties on FaceBook.