Small businesses play an important role in creating jobs and growing the economy. To support small business growth, Wells Fargo Bank has set a goal to lend an additional $100 billion to U.S. small businesses by 2018 in an effort to create jobs and boost the economy.
The program is called Wells Fargo Works for Small Business and it will provide resources, guidance and services to help small businesses achieve financial success, according to Wells Fargo's website.
It's common knowledge that small businesses often face struggles in getting business loans from banks, especially traditional banks like Wells Fargo--the fourth-largest bankholding firm in the nation with more than $1.5 trillion in assets.
However, Wells Fargo's Northeast Small Business Strategy Director Jim Malcolm told Forbes, "Right now one of the most important things we can do is grow the small business segment, not just for our bank but from the standpoint of the economy."
Another traditional lender making changes is BBVA Compass, which recently partnered with online alternative lender OnDeck to help borrowers who might not meet normal lending criteria. BBVA also purchased the online start-up Simple to streamline the lending process, turn loan applications faster and help make borrowers profitable.
The new Head of Digital Banking at BBVA told Forbes, "Our goal is to help clients and prospective clients feel more in control of their financial lives."
Now may be the right time for many small business borrowers to secure financing from banks and other lending institutions. Interest rates are still low, but they won't stay there, with many experts predicting that rates will rise in 2015.
According to Wells Fargo Market President Greg Allmendinger, it's the perfect time for small businesses to borrow and secure fixed rates for long periods of time. He says "Now's the time to get fixed rates for long periods of time."
Over the next several years, in addition to simplifying and increasing loans for small businesses, Wells Fargo will focus on educating "recession survivors" and new entrepreneurs about the financing options that are available to them.
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