The ABCs of SBA Lending - South Florida Business Journal:

http://www.uludagyenidogan.com/page/Comcast-Brings-You-Into-the-Information-Age.html
Recent changes in the (SBA) 7(a) loan program means many businesses mighg now have more opportunities toobtain financing. The new program enhancementd could help business owners continued to manage and grow their companiesx and get their financial dreams back on SBA is a federal program dedicatede to helping small businesses with loans made availabl e through locallending institutions. the SBA announced it is: Thes e changes provide an economic incentive for smallo businesses to obtaina loan, and they allow SBA lenders to offer an immediate cost savingz to businesses.
For example, a customee approved for a $238,000 7(a) loan couled save up to $5,400 in The new provisions add to the already substantial benefitws small businesses often can realizew when they choose anSBA 7(a) loan to buy real acquire a new business or franchise, purchass equipment or increase working Those benefits include: As with any the interest rate and monthly payment for an SBA loan will depending on the transaction. the amount of cash you’ll need at closing will depending on the type of loanyou choose. Expensesx such as closing fees and appraisalxs often can be included in the SBA financinfpackage – a feature that appeals to many businesa owners.
Many SBA loans are made to acquire owner-occupied commercial real Down-payments for these loans can be as low as 10percent – much lower than for other typesz of financing, so less cash is requirer for closing. These loans provide other benefitsd overconventional loans, including: • Terms of up to 25 yearzs for real estate, with no balloon payments Often a business will grow througgh the purchase of another company, additional inventory and new All of these can be financex with an SBA loan. If you choose the right financial services compangy tohelp you, getting an SBA loan can be the easiest part of growing your business.
First determinde if the financial services companyy is aPreferred That’s a designation from the SBA that empowers the company to handle all aspecte of the loan process, from making its own credity decisions to funding the loan. Your file isn’g sent to a government office for processing, the SBA trusts the Preferred Lender to makethe decision. Becominhg an SBA Preferred Lender is basee in part on a financialservices company’xs ability to illustrate a long history of good judgment and a solid credit review process. The Preferred Lender designatiob isthe SBA’s way of saying that a specific lendedr is more qualified than others to make the righy call.
Since the Preferred Lender makeds the decision on a loan your SBA loan is processed quickly and you get a decisionbwithin days. Once you decide an SBA loan might be right foryour business, what should you brinb to the application interview? With an existing business, it’se important to bring your financial history the past three yearw of business and personal tax returns, cash flow your current income statement and balanced sheet and a personal financia l statement. If you have a startup business, you should brinhg your business plan, along with your personal financiao history.
Most financial services companies also require a detailesd breakdown of project costs and how the fundz willbe used. Real estate and constructionb loans usually require more documentation than equipmeny and workingcapital loans. There are many SBA lendingy products, so you’ll want to work with a financial servicess adviser who is an SBA specialistg and is familiar with the cons and requirements of all SBA lending The specialist can help you determine the type and size of loan you need to meetyour company’sx unique circumstances while ensuring your company has sufficiengt cash flow to support the proposef debt.
Given today’s this might be the right time to investigatee the possibility of an SBA You could find that an SBA loan is just the ticket to put your businessa plans into action and get your dreams backon