Why Your Small Business Does Not Need A Bailout

In a previous article, mention was made of the new Obama Administration’s loan initiative. Imagine that: someone finally realizing that small businesses are the backbone of our economy. It will be creating a Small Business Lending Fund with the $30 billion just received from the large banks under TARP. These monies would be loaned to community banks who are seriously interested in making small business loans. It sounds like someone is finally listening to the plight suffered by our small businesses. Here are more details.

There are some things that you need to know about getting Small Business loans Boca Raton online. These five tips can help you make your chances better of getting this kind of loan for your business.

First, you can try to get a grant and you may have some success. Go to your local SBA office and talk to them about the grant programs that are out there for women business owners. They may be able to get you some free money or at least some tax breaks and free training in some areas of business that you might find useful. Take advantage of anything they can help you with.

A. That is a definite problem. We have to pull your personal credit report it is mandatory. On the other hand, my staff can give you a general idea of your chances if we know your credit score. That way you’ll not be disappointed.

But there is something else that would be of interest to a bank. In a way, this is a form of Federal bailout going directly to small community banks. They have on their books loans that are in default and they could easily jump at the chance of being able to bail them out with this program. Especially if they had not been the recipients of the first TARP monies. Contrary to public sentiment, most of them did not receive any money. But again, this might not apply to that community bank. Since they typically package and sell their loans within three to six months, it probably wouldn’t even be in default at that point. It would be in the hands of the secondary market investor.

However, for not so big monetary requirements and for the non-homeowners the unsecured loans are perfect. It is good for non-homeowners only because no collateral is required here. So, you can take up this loan and start your business without any tension.

A. It’s a long winded way of saying the Bush Administration came up with a vet loan program for business owners. These are loans for veteran-own business owners. The funding comes from private lenders and banks that are licensed with the SBA. As an incentive for the lenders to make the loan, they are guaranteed for default, namely are reimbursed 85% of the value of loan. I have to tell you, this makes a big difference because it really motivates the lenders. It gets them off the dime and makes them more willing to open up their coffers.

The trick to obtaining these loans is to find them. We have made our business out of jus locating these sources and you would be surprised at just how many government backed programs are available. All are nationwide and you simply have to know the right person to contact and let them know what you need.