SBA Loan: Qualifying and Applying
According to federal government research, small businesses provide about 75% of the net new jobs added to America's economy. They also employ fully one?half of America's private sector workforce. In addition, 99.7% of all employers in the U.S. are small business owners. These statistics make a strong case for the existence of a federal organization dedicated to the promotion and proliferation of small businesses in this country.
In 1953 the United States government established the Small Business Administration (SBA) as a way of assisting entrepreneurs in forming successful small businesses through government guaranteed loans. While the SBA itself doesn't make many small-business loans, its primary function is to guarantee the small-business loans made by private lenders.
Most SBA loans are secured through any one of the SBA's many licensed partners nationwide. Besides establishing lending guidelines for their partners, the SBA also ensures reasonable loan terms by guaranteeing major portions of the loan in the event of a borrower default. Because of the decreased liability provided by the SBA, the lender is able to offer better interest rates and options to businesses in the early stages of development.
Before we get too excited about the potential benefits of an SBA loan, it may be a good idea to first talk about who can potentially qualify. The size of your company obviously plays a large role in securing an SBA loan; after all, this is about 'small business'.
If you run a manufacturing company, its possible to have up to 1,500 employees working for you and still qualify for an SBA loan. On the other hand, depending on the type of manufacturing you do, it may be more likely that you'll be limited to 500 employees in order to qualify for loan consideration.
For some industries, the SBA lender may look at your company's average revenue. For example, if you run a wholesale or retail business, your average annual sales for the past three years cannot exceed $6 million to $29 million, depending on the type of business you own. Construction companies need to fall into the $12 million to $28.5 million range. Basically, if you make too much, you're considered too 'big' to need an SBA loan. It's also very important that you're running an independently owned for-profit organization if you are considering SBA loans.
If you still qualify keep reading.
When beginning the SBA loan application process, your lender will require you to have some specific information ready. The first document you'll need is your business profile; this simply describes the type of business you run, your annual sales revenue, the number of people you currently employ, and how long you've been in business. You will also need to provide a loan request. This is a description of how money you need and how you plan to spend it. As with any loan, you will need to provide collateral. Be prepared to explain how you plan to secure the loan.
The most important information you will need to provide is the business's financial statements for the past three years. These include: balance statement, income statement, and the statement of cash flows. As the owner of the business, you will need to provide not only your personal financial statements, but also the financial statements of any other individuals that hold 20% or more equity in the company. Most lenders will also ask for personal tax returns for the last three years.
In the next portion of this article, 'SBA Loan: Options, Benefits, and Lenders', we will further examine what kinds of loan options are available, and for what kinds of businesses they are most advantageous. Lastly, we will discuss different types of SBA lenders.
A Little Lesson on Loans
The opportunity to spend money is everywhere. There is no shortage of places that will take your cash. In fact, to keep the money flowing out of your wallet, banks and merchants continually come up with easier ways for you to spend it.
Easy Cash Advance - Payday Loans Online are Quick
Cash advances have become quicker to process with online payday loan applications. In as little as a minute, you can be approved for a cash advance and have the money in your checking account the next day. Cash advances can save you from life's sudden financial emergencies.
Short Term Solutions to Cash Flow Problems
If you're in a crunch for money, either because of an unexpected emergency bill or other reasons, you may want to look into check into cash services. Available online, check into cash services follow a three tiered process:
Compare Payday Loan or Cash Advance Lenders Online Before You Borrow
Comparing payday loan lenders, also called cash advance lenders, online guarantees that you will find the lowest rates and best terms. Payday lenders are required by law to post their rates and terms, so making comparisons is just a matter of a few clicks of the mouse.
Home Equity Loan Information - What Is A Home Equity Line Of Credit?
Did you know that if you have a home that you've been paying on for years, you may have a lot of usable money right under your nose? What's more, a home equity loan just may be the perfect way to get your hands on that money!
Dos and Donts: Student loans
Parents should begin saving money early for their children's college education because of the high costs and expectations that parents will pay part of the costs associated with the education. Several stock mutual funds are recommended.
The term unsecured loan relates to a loan which is not secured on any physical asset or other legal entity.
Many people are confused by the different types of loans available.Here is a helpful summary of the most common loans available today.
Fast Cash Advance Payday Loans - Convenient to Use Online
Online cash advance companies offer a convenient and speedy application process. Within 24 hours you can have your cash advance loan deposited into your checking account allowing you to pay those unexpected bills.
Why Choose an Unsecured Loan?
Why choose an unsecured loan? An unsecured loan can be used for almost anything - a relaxing holiday, a new car, a wedding, debt consolidation or home improvements. These are just some of the reasons why people choose an unsecured loan.
Quick Cash Advance Payday Loan - Get it Free or Cheap
If you are looking at getting a payday loan or a cash advance loan, you probably already know that one of the main drawbacks to getting one of these types of loans is that the fees can be so high.
Bad is the Opposite of Good... Is It? Not with Bad Debt Personal Loans
'Bad' means 'bad' no matter where you go! It is cumbersome and heavy, a threat and negative. So, you are taking this burden of bad debt every time you make a loan application for personal loans. It can't be translated into something good and certainly not the 'most wanted thing' especially when you apply for a loan. Let us rethink this 'can't'. Can we translate bad debt into something good. Yes, it is possible. It is very much feasible in face of current developments in the loan industry. Bad debt personal loans are so easily available in UK that it is like bad debt is not a concern.
Zero Zero Financing on Automobiles in Retrospect
Some say that the automobile industry saved the economy during the last recession. This is because auto sales are bundled into retail sales, which allowed higher numbers than actual to be reported. Many will say that what is good for General Motors is good for America, they might even cite the fact that the automobile industry saved the economy at the bottom of the last recession.
Quick Cash Loans Online - A Fast Way to Get an Emergency Cash Advance
If you need a fast way to get an emergency cash advance, then apply for a quick cash loan online. Payday loan companies now offer instant approval with their paperless process. Once approved, your cash advance will be deposited into your checking account the next day, allowing you to pay for car repairs or any other unexpected emergency.
Secured Loans ? Filling the Void Created by the Deficiency of Resources
"Money is like a sixth sense without which you cannot make a complete use of the other five."
What Is A Payday Loan?
A Payday loan is a small, short-term, high-rate loan. It is also referred to as: cash advance loan, cheque advance loan, post-dated cheque loan, deferred deposit cheque loan or cash loan.
Business Credit Scoring: Is It a Killer Application or Application Killer?
In his 1968 seminal novel, 2001: A Space Odyssey, Arthur Clark introduced HAL, a spaceship computer with artificial intelligence. Mission engineers designed HAL to carry out an array of technical orders to safeguard the ship's mission. HAL operated flawlessly until it reported the failed operation of a ship system that was operating perfectly. Rather than correct the mistake, HAL's logic dictated that it would be more efficient to kill the ship's crew. Ever the polite computer, HAL killed quickly and quietly until it was unplugged by the sole remaining crewmember, Dave Bowman.
Devising Newer Ways of Repayment
How good would it have been had there been no obligation to repay the loan or mortgage? This is what most people think when required to make the monthly repayments. But try as much as they can, they are never able to change the situation.
Holiday Loans Can Expand The Horizon Of What You See
Why do kids get all the breaks? Winter-weary adults, fed up with gray, uninspired landscapes need spring vacation too. This year consider a get away to a room with an inspiring view. You have been cash-strapped and indeed desperate to go out of the four walls you have been living every day. Never seem to have the money for your dream destination? Apply for holiday loans.
No Credit Check Payday Cash Advance Loan - Benefits to Using a Payday Loan
No Credit Check Payday Cash Advance Loan - Benefits to Using a Payday Loan Online if You Have Bad Credit History
|home | site map|