A recent Associated Press article spoke about the common challenge that small businesses are facing. It’s a challenge in obtaining loans for growth due to tightened lending standards by banks. The Federal Reserve’s interest rate hikes over the past two years, coupled with the collapse of three regional banks and the possibility of stricter regulations, have made banks more cautious. According to the Federal Reserve’s quarterly survey of senior bank loan officers, 49% of banks reported tightened lending standards for small firms (with less than $50 million in annual sales) in the July to September quarter, up from 22% last year.
The article features the story of Shantell Chambliss, owner of Non Profitability, who faced challenges obtaining a $25,000 loan for her business expansion. Despite being denied by traditional banks, she explored non-traditional options but encountered exorbitant interest rates, leading her to pause the expansion plan and consider crowdfunding as the next logical step.
Nate Hodge, co-founder of Raaka Chocolate, shared his post-pandemic experience seeking funding for remodeling from banks and online lenders, shocked by interest rates exceeding 19%. The overall lending environment has left small businesses feeling like “hamsters in a wheel,” with many putting off projects due to the challenging financial landscape.
Regium Funding gives your business the financial flexibility it needs to operate while still making payments, at only 1% per week. Navigate through these uncertain economic times, with a reliable alternative funding partner. Apply today.
