Last week, Small Business Administration made a small effort to loosen up its lending restrictions for its SBA 504 loan program and allow business owners to refinance their existing debt and improve their cash flow. If a small business owner’s personal assets do not exceed $250,000, he or she can qualify for the 8 (a) business development program. Getting a piece of this lucrative market is within the realm of many smaller businesses if you are willing and able to play the government contracting game.
This can be a formal mentoring type relationship through organizations like the Small Business Administration, or simply a colleague who is already where you are trying to go. Failure to make timely payments harms the credit history of the business, making it difficult to procure any business loans in the future.
Long-established commercial lenders usually offer long-term loans that have low interest rates. He or she will give importance to the individual’s personal financial statement and see if the loan can be secured against personal or business assets. An SBA business loan is one of the most popular methods of funding a small business.
With a portfolio of more than $45 billion, the Small Business Administration, or SBA, is the main source of getting funds for businesses through direct grants and loan guarantees. Its creation emerged as the result of a Federal Reserve study that discovered, in the basic form, that these businesses cannot get the credit they needed to keep pace with technological advancement.
When lenders see a good credit record your chances of getting a loan are high. The 7(a) Loan Program, another SBA program, is the most widely used SBA guaranteed loan program for start-up and existing businesses with an upper limit of $5 million. Applying for a business loan is now quite convenient since every step of the process can be conducted online.