According to Inc. Wire, in the last 3 months banks reported seeing an increase in loan requests from business owners which seem to be at its highest level since 2005. This new report implies future expansion for small business which could be great for the economy.

Analysts say, ““If a firm wants to expand, they typically need to borrow money to do it,” Drew Matus, senior economist at UBS Securities reported to Bloomberg. “So at a minimum this suggests we should still be looking for decent job growth over the next three to sixth months.”

Here is my opinion:

While the request for bank loans might be at their highest level it will be interesting to see if businesses actually receive those funds.  In addition, I am curious to know if the banks have indeed changed standards and terms for such loans making it a bit easier for businesses to obtain the necessary funds.  Despite this latest report I still feel that many struggling businesses will have a need for alternative financing methods bypassing the banks in an effort to gain access to money which will help them expand and grow their business.

If you are interested in learning more about this most recent report visit, Inc. Wire, and don’t forget to check out the opinion survey on bank lending practices.

What are your thoughts?