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The Secrets on how to Get Small Business Lendingby Robert Michael Published on this site: March 10th, 2007 - See more articles from this month
The SBA, Small Business Administration, has guidelines and regulations on what businesses qualify for help and those that do not. So, if you are interested in the SBA and getting loan or business help, then you should find out more about what SBA loans are exactly, qualifications needed, and how to qualify your company. First of all, the SBA does not loan federal money to private businesses. Instead, the SBA has several programs that assist small businesses to receive loans from traditional sources like banks and other lending institutions. What the SBA does is guarantee a large percentage of the loan
for your company with the lending institution. Because of this
guarantee the bank is more likely to approve your loan.
However, the SBA will require you to have some assets to
guarantee the other percentage of the loan they do not To qualify for an SBA loan you will need to have moderately good credit because a credit check will be conducted. The reason for this is the SBA does not want to guarantee a company that has bad credit and will not pay the loan back. So, as long as you have decent credit and can almost qualify for a loan at the bank on your own, then the SBA will be more than happy to guarantee the majority of the loan for you. Of course, you will have to guarantee a portion of the loan with personal assets as well. If you have really bad credit then it is highly unlikely the SBA will be willing to guarantee a small business loan for your company. If you are interested to see if your company will qualify for SBA assistance then you should go online and do some additional research to find out about the different kinds of assistance and what would be most profitable for your company. Of course, there is an application process and you will have to fill out several forms and present various documents during the process. The best information you will receive is if you call the SBA
and talk to a representative about your business, goals, and
needs in order to have a better idea of where you stand and
what options are available to your company. |
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