Michigan small businesses face obstacles for expansion
Michigan businesses may have more trouble accessing credit to grow their companies. But many don’t know about the resources available to help them.
A new study from Michigan State University found that small businesses and start ups in the state have trouble getting loans to expand because of stricter lending practices.
J.D. Snyder is with MSU’s Center for Community and Economic Development. He says small business growth is further hindered because their owners don’t understand what they need to apply for loans:
“We found from the survey of lenders that a significant number of small businesses do come into a bank asking for a loan with very little preparation, without sufficient knowledge of their own financial conditions.”
Snyder said several programs in the state assist small businesses in preparing documents a lender might need, such as a business plan. He said "The more carefully they’re able to put together that kind of financial record keeping, the better they’ll be perceived by their banker."
-Bridget Bodnar, Michigan Radio Newsroom