Small Business Administration loan programs might be the answer.
Starting a small business takes time, hard work, and money. Depending on your type of business and your present financial situation, you may find you need to reach to outside sources for funding.
One resource you can turn to for assistance in obtaining a loan to start or grow your business is the United States Small Business Administration (SBA). While the SBA does not directly lend money to small businesses, it can facilitate loans with third party lenders. Various banks, credit unions, community development organizations, and microlending institutions throughout the U.S. partner with the SBA to provide funding to small businesses without access to other financing options with reasonable terms.
SBA sets specific guidelines for loans, which are made by its partners, and it guarantees that they’ll be repaid by the borrowers. This benefits small business owners by giving them access to much-needed funding, and it eliminates some of the risk to the lending partners.
To qualify for an SBA loan, your business must meet certain criteria regarding business size, financial standing, and others. You must also meet the credit qualifications of the lender. Continue reading
by Gerri Detweiler
Carolyn Walters’ small business clients know they can ask her more than just tax questions. While “tax is the heart and soul of what I do,” she says as the owner of Financial Solutions Accounting and Tax in Greensboro, NC, she has expanded her business to offer a variety of different services.
“The challenges that small businesses have usually end up in my lap one way or another,” she says with a chuckle.
Walters wants to be the first resource her small business clients turn to when they have questions about small business financing and credit. “Quite a few of my clients are looking at ways to expand and grow their businesses, and that takes money,” she says.
Some of them have the funds they need to grow, but others will need to borrow. And even those who don’t have to borrow may find it advantageous to do so. “If you can get credit at low rates and still maintain the integrity of the business goals you are trying to accomplish, it may make sense,” Walters says. Continue reading
In this podcast, SCORE mentors talk with Ty Kiisel of OnDeck about personal vs. business credit and how to obtain business loans.
By Caron Beesley, Contributor
It’s been a stellar year for SBA lending, which is good news for small businesses.
In FY 2014, the SBA’s flagship loan program, the 7(a) Loan Program, achieved another lending record. By the end of the fiscal year (Sept. 30), SBA had approved 52,044 7(a) loans for nearly $20 billion, an increase of 12 percent in the number of loans and 7.4 percent in dollar amount over the previous year.
If you have struggled to get financing in the past or are thinking of venturing into small business loan territory for the first time, you may be wondering what SBA’s loan programs are all about.
By way of introduction to SBA’s loan programs – what they are, who can benefit, and how to apply – here’s a brief explanation. Continue reading
Need financing to start or grow your business? If you’re starting a business that requires significant financial investment up front, finding a source of funding can be a challenge. Many start-ups and new small businesses often find they may not qualify for a traditional small business bank loan. Without a proven track record of 3-5 years under your belt and/or established business credit, many banks simply won’t take the risk. But before you risk your life savings or re-mortgage your home, you should know about some possible alternatives. Continue reading
A new predatory lending scheme is targeting struggling small business owners.
Sadly, just like the old loan sharks in the movies, many small business owners have fallen victim to these predators, and it has cost them their business and sometimes personal bankruptcy.
Everyone understands that bank loans are more difficult than ever to obtain for a small business owner. Whether you blame it on too much regulatory control, like Dodd-Frank mandates, stingy bankers or an anemic economy, if you need funds to grow your small business, it can be a very steep hill to climb.
A fact of entrepreneurial life is that your startup capital usually comes from your savings, your friends’ savings, your family members’ savings and a bunch of credit cards. But even when you are profitable, you need money to grow your business. Continue reading