Donald Trump has not taken office, yet his campaign rhetoric is already taking form. Not including foreign policy (that Russian situation will be rather tricky for him to overcome), President-elect Trump has done what many people suspiciously pointed to during his Presidential run, he’s been able to stay on target. From Ford, to Carrier, to foreign investors like Sprint and Jack Ma, Donald Trump will enter his job already bringing proposed billions to the American workforce.
And for those wondering where small businesses will fit into the equation, it seems the newly termed “Trump Bump” is already having an effect.
To be clear, the so called “Trump Bump” is a mixture of Donald Trump’s proposed deregulation of every industry in America, his promise to bring back American jobs, and Obama’s ability to turn around a country headed for disaster and put the US in a situation for the next leader to grow it effectively. Now I understand the popular sentiment is to bash his Healthcare policy, over regulation, and low full time jobs numbers, but alot of that had to do with the cards he was dealt. While Obama was given an America on the edge of a financial cliff, Trump is being gifted a country on the edge of economic expansion. Yes stocks are hitting record highs, but they did so under the Obama Administration too (and they will continue to do so under the next President).
Regardless, the Trump Bump is helping now helping small businesses with lending opportunities. Big banks are responding to the incoming President by opening their books and granting loans to more small firms.
According to Biz2Credit “Small business loan approval rates at big banks jumped to 23.9 percent in December, marking the fifth consecutive month of increases for this category of lenders. Additionally, institutional lenders extended their increased loan approval rates for the sixth consecutive month, approving 63.4 percent of loans in December alone.” With so much expectation within the Trump Administration, expect these numbers to continue to climb. Unfortunately as big banks increase their loan dollars, alternative lenders suffer. Alternative lenders and credit union approval rates “dropped significantly, as they registered 58.6 percent and 40.9 percent approval rates respectively in December.”
The new lending industry is almost among us, and it looks to be a positive for small businesses.