Small business lending is booming, and that’s great news for you.
In 2014, U.S. borrowing by small businesses pushed the Thomson Reuters/PayNet Small Business Lending Index to itshighest level in over seven years.
Startups with solid collateral in high-growth sectors have lenders pulling out their checkbooks, and you can get in on the action.
Check out these growing industries — if you’re already part of them, you’re on the right track. If you’re ready to branch out, consider starting here:
- Small-scale manufacturing. Though it’s just 12% of U.S. GDP, manufacturing has grown roughly twice as fast as the overall economy since the recession’s end. What’s more, 98% of U.S. manufacturing firms are small (fewer than than 500 employees). Innovative technologies like the exploding 3D printing market and laser cutting are breathing new life into the sector.
- Specialty foods. Pass the artisanal cheeses! Specialty food sales rose 18.4% between 2011-2013 to $88.3 billion, says the Specialty Food Association. And foodies (and lenders) are hungry for more. Non-GMO products have the highest growth potential over the next three years, while nut & seed butters, eggs, and frozen desserts also have lenders’ mouths watering.
- Hobby farming. Small “lifestyle” farms (usually smaller than 100 acres) are benefiting from another specialty-food trend: 70% of consumers seek out locally sourced products. According to small-business credit-rating firm PayNet, investment in hobby farms grew 14% between 2009 and 2013. Keen on agricultural real estate, an increasing number of banks across the country are offering hobby-farm loans.
- Green building. Eco-friendly construction is here to stay: According to McGraw-Hill Construction, the industry should be worth between $204 and $248 billion in the U.S. alone by 2016. As the housing market continues to rebound, and tax incentives and stricter building codes make sustainable construction even more standard, this construction segment will make others green with envy.
- Healthcare. Perhaps less sexy than other industries, doctors, dentists, and other health practitioners (including veterinarians) are perennial small-business lending favorites: According to Lendio.com, 46% readily qualify for loans.
By Alexandra Kirkman
Sourced from https://www.tapp.com