Posts tagged sba loans
Two thirds of low interest emergency SBA loans denied
Jul 30th
The SBA offers emergency loans to victims of emergencies and disasters. Image: Flickr/U.S. Geological Survey
In some areas of the country, low interest Small Business Administration loans that have been heavily pushed are not proving to help. This cash advance product has been promised to homeowners and business owners to help rebuild after emergencies. Offered at 4 to 6 percent interest, the SBA offers this supposedly quick loan solution to victims of floods, fires and the Gulf oil spill.
The purpose of SBA loans
In “everyday use,” SBA loans are intended to help small businesses build and develop. The SBA is actually a loan guarantee entity. It does not offer loans online but instead works with banks to provide loans. Disaster loans, also administered through the SBA, are given to both individuals and businesses who have been affected by disasters. Like all loans, SBA loans consider the credit of borrowers and their ability to repay. Unlike other loans, SBA loans are intended only for individuals who “are having difficulty accessing other credit.” … click here to read the rest of the article titled “Two thirds of low interest emergency SBA loans denied“
What is the 504 SBA Loan Program?
Jul 25th
The 504 SBA loan program is a loan program that is designed to help small businesses grow and expand. Here are the basics of the 504 SBA loan program and how it works.
504 SBA Loans
With this type of loan, businesses can use the funds that they receive to expand their current business. They could potentially use the money to buy new equipment, purchase additional land, or expand their building. Anything that has to do with expanding the business could be covered with the funds from this type of loan.
Eligibility
In order to qualify for this loan, your business is going to have to meet the requirements that are set forth by the SBA. This means that your business is going to have to fall into certain size limits depending on the industry in which you are in. If you are too big, your business is not going to be able to qualify.
Benefits
Getting this type of loan is going to allow you to get a very competitive interest rate. Another benefit of the 504 SBA loan program is that you will be able to be approved easier because the SBA is going to be standing behind the loan.
Start Up Business Tips: 3 Ways to Get Financing
Jul 5th
If you are trying to secure financing for a start up business, you may need to look in a few choice locations for your search.
1. SBA Loans
One of the most popular ways to secure financing is to get an SBA loan. The Small Business Administration is a government agency that guarantees small business loans. These loans are designed to help entrepreneurs get started with minimal out-of-pocket investments. They also have relaxed credit standards and competitive interest rates.
2. Venture Capital
If you have a good idea for business, you may be able to get private investors to provide you with venture capital. They will give you the money that you need, in return for a percentage of ownership in your company. While you may not like the idea of giving a part of your profits, it might be the best route for you to take because the influx of cash is usually good.
3. Peer-to-Peer Lending
There are also several peer-to-peer lending sites that you might want to investigate. These sites allow you to connect with individuals that have excess money to lend. These lenders will bid on your business and provide you with a competitive interest rate.
SBA running out of low cost loans to businesses
Jul 3rd
Many small businesses are struggling and relying on SBA loans to make ends meet. Image from Flickr.
The Small Business Administration has been charged with helping businesses weather the recession, and money is running out. The 7(a) lending program provides loans, personal and large, to small businesses around the country. The program, which was funded by the American Recovery and Reinvestment Act, is currently in a holding pattern, waiting for more money.
How the SBA provides low cost loans
The Small Business Administration itself does not give instant money to business owners. Instead, the government agency backs up loans made by banks. With the SBA “insurance policy” against default in place, banks are much more willing to act as a money lenders to often cash-strapped small businesses. The stimulus package authorized the SBA to waive fees and guarantee up to 90 percent of a loan’s value.
The effect of SBA loans
Small businesses are often forced to rely on credit and loan lenders to keep their businesses going. Over just a three-month period of April, May and June, the SBA lent out $3 billion over 12,123 loans. Compared to the same quarter of 2009, that is 21 percent more emergency money for cash-strapped businesses. The program, however, is still waiting for re-authorization, which is leaving millions of dollars of loans in limbo. … click here to read the rest of the article titled “SBA running out of low cost loans to businesses“
SBA Financing In 2010
Jun 23rd
Why SBA Loans are still viable, the positive effects they've had on banks and who qualifies for an SBA Business Loan.
SBA Mortgage Financing
Jun 18th
Discusses SBA Loans and their viability despite the current economy. These types of loans are still closing and will likely remain the most reliable form of financing over the next few years.
SBA Financing, Is There a Light At The End of The Tunnel?
Jun 1st
Sba Financing and SBA Loans; Current Issues and General Outlook.
