Traditional banks and regulations have made it challenging for small businesses to secure loans since the beginning of the Great Recession. But that may be changing: As of May of 2014, Wells Fargo has agreed to lend $100 billion to small businesses by 2015.

The small business market is the heart and soul of the American economy. Every big company at one point was just a few people with an idea that grew into something more. It is no question that small businesses act as the driving force in creating jobs, and in the current economic state, creating jobs is more necessary than ever. Traditional banks and regulations have made it challenging for small businesses to secure loans since the beginning of the Great Recession. But that may be changing: As of May of 2014, Wells Fargo has agreed to lend $100 billion to small businesses by 2015.

Why the Change in Small Business Lending?

Over the years, small businesses have encountered more challenges in obtaining loans from traditional financial institutions. Market President of Wells Fargo, Gregory Allmendinger, agrees that the way small business lending has been handled in the past needs to change. This change, he says, is the greatest opportunity for small businesses to borrow and lock in fixed rates for “long periods of time.”

Major L. Clark, III and Radwan N. Saade of the Office of Advocacy U.S. Small Business Administration state, “We argue that small business was not given a chance to act as a multiplier, and that if the U.S. is to continue to grow, small business must be a part of the mantle to lead it to the next level; otherwise, the past is prologue.” According to Wells Fargo’s Northeast Small Business Strategy Director James Malcolm, growing the small business market – that is, altering the way small businesses borrow money – is “the most important thing” banks should be doing. Finally, people are starting to recognize the role small businesses play in growing the economy, most notably by creating jobs.

Balancing Traditional Lending with Alternative Financing & Merchant Cash Advance

Even with Wells Fargo and other traditional banks increasing their lending to small businesses, it’s still important to find the right balance in your financial mix. Traditional funding sources work hand-in-hand with alternative funding sources to maximize your company’s cash flow. Businesses that rely on a single funding source may risk the agility to respond to changing customer needs, dynamic markets, and even day-to-day requirements like meeting payroll obligations.

That said, alternative financing resources like merchant cash advances often have qualification requirements that are less stringent than what the big banks require. And with funding decisions available within a matter of days, rather than weeks, access to cash can allow small businesses to continue to meet customers’ and employees’ needs quickly and easily.