Trends in Small Business Funding in 2022

Small business owners are cautiously optimistic heading into 2022. Over the past two years, small businesses learned the value of resilience and quick thinking. Now that lenders are opening back up, it’s time to learn some trends in small business funding in 2022. Take a look at your options—one might be right for you.


Banks and credit unions are opening their doors more widely and extending SBA (Small Business Administration) loans. If you’ve maintained good credit, you’re likely to get a lower interest rate on that loan. Liquidity has increased—in other words, cash is flowing more freely—this year. This reflects the optimism of many lenders and business owners looking forward to a brighter 2022.

Credit Cards

In 2020, credit card companies reduced many people’s credit limits and slowed lending to a near halt. However, the more we know about COVID-19, the better society can track its effects. As the pandemic winds down, credit card companies are raising credit limits, allowing easier lending.

401(k) Financing

Rather than maxing out your credit cards or taking out a home equity loan, investing your retirement savings may be an option. Often, people looking to get out of the rat race and go into business for themselves think about using their 401(k) savings to help with startup costs. Rather than withdrawing your retirement savings, you have the option to roll your existing funds into a new retirement plan. The new retirement plan purchases shares in your new company, allowing you to use the funds as working capital—all tax-deferred and penalty-free. Instead of paying interest on small business loans, you can use the funds for staff salaries, marketing expenses, or equipment purchases that enhance your business!

This year, small business owners are optimistic. Businesses are beginning to heal from the damage that COVID-19 wreaked. Make a strong start in 2022 by keeping your finances stable; you’ve got several options to do so. These trends in small business funding in 2022 will help you grow your business and keep it afloat.