By: Julie Story
Small businesses play a considerable role in the health and vitality of the U.S. economy, and several incentives and tax benefits have been employed as of late to encourage growth. However, a recent survey conducted by the nonpartisan Small Business Majority reveals that many companies believe growth could be facilitated if community bank programs and credit union lending caps were expanded.
According to the results, 90 percent of small business owners believe access to credit remains a problem and would support measures to increase the lending abilities of community banks and credit unions. In addition, 77 percent are in favor of increasing incentives that would prompt community banks to grow their small business banking programs. Further, a margin of 2 to 1 shows small businesses are supportive of raising credit unions' lending cap to 27.5 percent, up from the current 12.25 percent.
"Small businesses create 65 percent of the net new private sector jobs in America," said American Sustainable Business Council co-founder David Brodwin. "Our deregulated, damaged banking system isn't providing the credit they need, and they are calling for change."
Brodwin also noted that as banking lending portfolios shrink and more small businesses are forced to rely on credit cards, restrictive lending caps and regulations may be inhibiting rather than fostering economic growth.