Approval rates for small business loans rose to another post-recession record in September.
Nearly 30 percent of loan applications at big banks are being approved, according to the Biz2Credit Small Business Lending Index.
In the 2008 recession, small businesses got hit hard.
“Lenders pulled back their funding. They were apprehensive, of course, to do any financing. They froze lines of credit. In some instances, they would even go out to small business and pull back inventory and operating lines,” said Samantha Damron, of the Eastern Idaho Development Corporation.
Fast forward 10 years later, and the small business market is thriving.
With the economy on the rise and a nationwide push to bring businesses back to the U.S., more loans are being approved and interest rates are dwindling.
“Our most recent funding at least on the SBA side, is 3 and 1/2 percent, fixed rate money for 25 years,” Damron said.
The upswing in lending is especially benefiting Idaho’s rural communities, according to Damron.
“Which is wonderful, because they’re usually the last to rebound from a recession. They’re the first and hardest hit, and the last to come back,” Damron said.
Also locally, Damron said the growth in Southeast Idaho is a good sign for small businesses.
“I think with the growth we’re seeing up around the Highland area and out into Chubbuck, I think Pocatello is poised to see some pretty crazy things,” Damron said.
Damron also believes that the Northgate development will have a big impact on the economy.
She said that while Pocatello’s small business growth isn’t quite on par with Twin Falls, Boise and Idaho Falls, Pocatello and Chubbuck are poised to take a huge leap in the coming years.