Business Loans

The history of business loans -small or big- goes back to the 1930s when businesses were struggling for their existence after being struck hard by the great depression. In order to help them get back to normal functioning, which had a great impact on the American economy, President Herbert Hoover created the Reconstruction Finance Corporation (RFC) in 1932 which funded the firms affected by the crisis. Again, in 1942 during World War II, Congress created the Smaller War Plants Corporation (SWPC) in 1942 particularly to fund small businesses to keep up with war productions. Then came the Small Business Administration in 1953 which is still funding (and guaranteeing) SBA loans that have rather turned very competitive nowadays. Apart from the SBA, there are many private financing companies that have not only come to the rescue of companies of every size in difficulty but also to help them grow. Most lenders even offer small business loans as unsecured funding and some have dedicated their services to women entrepreneurs. The competition among credit companies, technological advances and the evolved approach of lending have really turned out to be a boon for businesses in this country.