The Everchanging SBA Loan
As each day passes something changes with Small Business Associations commercial loan program.
We provide funding and one of our sources is the SBA. It used to be not long ago we could find funds for the start up small business owner with a little work and determination. Just recently they changed from the business owner being a start up without assets such as ownership in the property the land or building to having to own part of the land or building that you need a loan for. This has cut out 80% of our SBA applicants. Now they will not allow credit card consolidation if you currently have some of this debt under 10% interest?
How is a small business to get a loan? We are having to source hard and direct money lenders. We used the SBA because it offered better interest rates and fees incurred to get a loan for the business owner. There are other options available however, it will be for a larger investment on the part of the business owner.
We can see now why so many banks has stopped offering SBA options and why more private money lending options are becoming available for business owners.
Ken writes for Funding Approval to learn more about your funding options visit www.fundingapproval.com
Comments (2)
Hello Jon, We should be able to help you with a loan, not necessarily an SBA, but there are other commercial loan options. We would need to review the financial statements of the business and the borrower to know for sure what we could do. We would also want to know the as-is market value of the property you are interested in purchasing, as well as the construction costs inolved in the repairs, and the market value as-completed. We need more information before we can answer your question. Contact: fundingapproval.com
Ken Garratt, about 15 years ago
Hi Ken, how would this scenario fly? Small business LLC in business since Dec, 2007. 2008 tax return shows small loss. $50K revenue for 2008. $150K revenue for 2009. $250K projected for 2010. The owners are pretty strong. 730-800 FICOs. Want to buy a building for $175K with commercial improvements/repairs. SBA?
Jon Klaus, about 15 years ago