Tag: SBA loan

One of the major aims of the Small Business Administration is to provide access to working capital for qualified new and growing companies. The SBA does not directly lend money to entrepreneurs however. In addition to its SBA loan program, it also offers a venture capital system called the Small Business Investment Company (SBIC.) Here’s what you need to know about this program: The SBIC was established in 1958 by Congress in order to get more financing to growing businesses. It allows […]

You’ve hit a wall in your business growth. You need more working capital. A small business loan can be the safest and cheapest way to obtain the funding your company desperately needs. The requirements can be stringent and the application process can be extensive. Here are 5 ways to be prepared for small business loan success. 1. Prepare to Explain the Reasons for Your Loan In order for a lender to approve your loan proposal they will need to see a convincing reason for the funds. If you are […]

Small Business Administration (SBA) loans – or 7(a) loans, are often a coveted prize for U.S. companies. They offer some of the lowest rates anywhere on small business financing and generally provide the longest repayment terms as well. The loans are guaranteed by the U.S. government so businesses can feel confident in the security of their funding. These loans sound ideal and yet many business owners won’t even consider applying for them. Why? The application process for SBA loans is notoriously […]

Finding enough and the right kind of small business financing is vital to every growing company. Small business loans can be a great windfall for any firm, but over the years several myths have been built up around them. While there can be some struggles and hard work associated with securing a loan, here are three myths that should be dispelled. Myth #1 – Don’t Ask for Too Much Money When asking a lender for funds, the amount is not so important as the reasons why you are asking for that sum. […]

The Small Business Administration has designed a program to help entrepreneurs that may have to overcome social or economic disadvantages in business by giving them a boost into government contracts. It is called the 8(a) Business Development Program and it can be a huge financial benefit to those who qualify. The 8(a) program is a nine year plan with two stages. The first four years are the developmental phase when a socially or economically disadvantaged company gets mentoring and education, […]

While the idea of one giant small business loan to cover all your growth needs sounds ideal, it is usually better to approach a loan thinking only about the next step in your company’s future, not the next five. Planning to borrow only what you need for the next stage will make your application much more viable with banks. Banks and other lenders, especially those making SBA (Small Business Administration) loans, want to know how you plan to use the borrowed funds. That means a specific, measurable […]

Thousands more American businesses will be able to seek financial help from the Small Business Administration as of July 14, 2014. By updating the size and asset standards it uses to determine loan eligibility, the SBA is making its broadest changes since 2008. The updates are based on inflation and on allowing companies to compete with larger competitors. Each industries standards are different, but some requirements were changed to include a greater number of employees that a firm could have. […]

With a bit of financial legwork, franchisees looking to expand and become multi-unit operators can get the needed funding and realize their dreams.