Fortunately there is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program, although Congress has failed to make the program permanent and still has a 10% cap on the number of loans.
In addition to the banks, credit unions and other banking venues, there is also the option of obtaining a loan from a government agency such as the Small Business Administration. There are several places to go to find Boca Raton Mortgage Lender if you have a good idea and decent credit. When you decide to go for the loan, think it all out very well and figure what amount you will need to get the business off the ground.
And worse yet, the number of SBA loans is decreasing. For example, in August and September of 2008, SBA loans were down approximately 50% from the year before.
You must first prove that you are a legitimate business. Otherwise anyone would be able to declare themselves a business in order to borrow money from the bank. This would not be profitable for the lenders, and would soon make borrowing even more complicated. This is one of the reasons that you will want to obtain a tax ID number. This tax ID is registered with the government, and shows that you are indeed operating a business. This will also make things easier at tax time.
Eliminating SBA guarantee fees. When you get an SBA loan you have to pay a fee at closing which goes to Washington and helps defray losses from the banks. It can be expensive, especially for larger loans. TRANSLATION: Aren’t we all tired of paying excessive closing costs and fees?
In order for you to find one that suits your needs the most, you should start by researching banks. There are banks that can help women obtain small business loan even for the fact that they have bad credit. However, you must be cautious for they may charge you exorbitantly high rates of interest and huge fees to cover any potential future losses. Look for financial institutions with business credit services for women and small owned businesses. They usually have different criteria in helping women obtain the loans.
Your first option is an online website called Prosper. They match individual lenders with individual borrowers and you can use it to get a loan for your business. The maximum loan amount is $25,000 so there is only so much available here, but if you have good credit you can get up to the maximum rather quickly. This is a good option if you have bad credit, too, but you might not be able to get as much or as good of a rate.
Only time will tell if this program is successful. But while we wait as the economy struggles, there are lenders who are actually serious about lending, but have not received bailout monies. They use a program called SBA Community Express, which makes small cash flow loans of between $5,000 and $25,000 at the low unsecured interest rate of 7.75%. At least someone is getting the message.