We have covered how small businesses are having a hard time finding access to credit. This is definitely true through the traditional means of large bulge bracket banks. Their lending standards have increased to more risk averse yet logical levels. Small businesses without a strong track record will find it next to impossible to get large loans. Note the wording. I said large because more and more businesses are now seeking microloans, those of $50,000 or under, more and more. Newsday continues, “Entrepreneurs seeking smaller amounts of capital can try a traditional lending institution, but if they're having difficulty accessing capital because of stricter lending requirements, there are various alternative microlending options on the Island, Goldmacher said.

For instance, the Community Development Corp. of Long Island in Centereach offers a microloan program of up to $50,000. While they've funded start-ups, they typically like to see a business in existence for at least nine months, said John Bozek, vice president of small business lending for the CDC, which offers a Small Business Administration microloan that's partially funded by the SBA and is for applicants who can't get a traditional loan. This way, the CDC has some revenue and cash flow to assess the applicant's ability to repay the loan, said Bozek, adding microloan inquiries are up at least 10 percent from a year ago…”