Small business lending rises in Massachusetts

Entrepreneurs looking to create a corporation in Massachusetts are now seeing some encouraging signs. Small business lending and new business formation is on the rise in the state, according to the Boston Globe.

The Globe reports that lending through the U.S. Small Business Administration is at its highest rate since 2005, and has more than doubled over the past year. Helping to spur the increase in lending is a 33-percent increase in the number of SBA lenders in the state.

“We’re seeing more optimism, more choices for businesses to get capital and more competitiveness among lenders. There’s certainly a lot more work to be done, but we’re seeing some positives,” Bob Nelson, director of the agency’s Massachusetts office, told the Globe.

Small business sales are also picking up in the region, according to the paper. A recent survey by the Federal Reserve found that many small businesses had seen strong customer demand and increased sales.

Nurturing small business growth will also be one of the key factors in the state’s upcoming gubernatorial election. Bloomberg reports that Republican candidate Charles Baker and Treasurer Timothy Cahill have proposed a new business tax cut, while incumbent Governor Deval Patrick has pushed for lower small business healthcare costs.