Small businesses are the backbone of the American economy. It is estimated that well over half of all new jobs created every year are by businesses that have less than 100 employees. When starting a small business, many people simply do not have the capital up front that they need in order to start and run a business appropriately. The Small Business Administration offers a variety of incentives for would-be business owners in the form of SBA loans. SBA loans* are generally easier to get than other loans and have more favorable interest rates.
Running A Small Business
For many people, starting and owning their own business is a dream that they have had for years. However, a lot of small business ideas require tens of thousands of dollars to get started. There are many people that are stuck financially and simply can not come up with the money to start the business. The Small Business Administration has a lot of programs that are designed to help out business owners with starting a business because they are so important to the overall economy.
There are many tips for people running a small business financing that will help out over the long run. First of all, always have reserves in the bank for emergencies and acquisitions. There are many opportunities in the marketplace but generally, are going to require some sort of cash on hand. In addition, make sure that paying back the SBA loans is a top priority. These are still loans that must be paid back like any other debt, and by treating the loans as a drain on the finances of a business that they can be, a business will open up their free cash flow much more once they are repaid.
Purpose: Purchase, Refinance, Rehabilitation and Construction
Owner Occupied: 50%+
Term: 25 years fully amortizing
Doctors, Dentists, Vets, Lawyers, Architects: 100% LTV
Multipurpose: 90% LTV
Special Use: 85% LTV
Prepayment: None on loans less than 15 years; step down 5, 3, 1 for loans more than 15 years
Fees: Can be rolled into loan
Credit Score: 650+
Collateral: Business assets; personal assets as necessary
Closing: 45 to 60 days to close
Lending Area: Nationwide including rural areas
*This product is not regulated by the New York State Department of Financial Services