Looking for a small business loan?
Are you looking to obtain a small business loan for your business? You probably have been to your local banks already and they either declined you or are engaging you in a long drawn out underwriting process. If you are in the service industry then you can probably forget about it. If you haven’t been in business for at least 10 years as well then well you probably won’t qualify either. In fact if your credit isn’t immaculate then you’ll be hard pressed.
This unfortunately is the forecast today despite the fact that the government has invested billions in bailing out banks and financial institutions. Unfortunately banks still haven’t really “bounced” back. There are new banking regulations that limit banks in numerous ways, but some even think the financial institutions are going back to their old ways and this could mean a further financial crisis in the future. The interesting thing is that over 50% of America’s workforce is made up of small businesses. Despite this fact, banks make the majority of their loans to large corporations and businesses.
http://businessloansmall.org specializes in alternative funding for all types of businesses, young and old, who are looking to expand, purchase new inventory, pay off bad debt, or just get some extra working capital into their business. Since banks aren’t giving out business loans, this type of alternative financing is a necessity for any business who needs extra capital. We specialize in alternative financing such as equipment leasing, asset based lending and merchant cash advances.
As in all financial and business matters, companies need to decide if a business move is right for them. Traditionally, because unsecured lending is just that, unsecured, it is more expensive then a traditional bank loan. The reason for this is because products such as merchant cash advances are much riskier than a business loan from a bank. A product like a merchant cash advance is geared towards short term lending, usually between 6-12 months – not 10 years. In addition the unsecured factor means that there is no collateral attached to the advance. This means that if the business fails, the lender looses his entire investment. Most bank small business loans are attached to collateral such as the the business owner’s house or other assets.
2010 Small Business Loan Act – Just An Act
Small businesses have been suffering this last economic recession – there is no doubt in that. But it is simply not true to say that businesses have not been able to receive credit lines from banks. Bad businesses have not been able to because after the largest banks including Bank of America, Citigroup, and Wells Fargo collapsed and needed to be bailed out by the government, they decided to tighten up their lending practices by not investing in failing and extremely risky businesses.
This new act is just that: an Act! It’s another way for President Barak Obama and the government to flush more money down the proverbial barrel. It’s simply more pork to appease the small business loan lobby. Good businesses have always been able to receive funding.
New Small Business Loan Bill Passes
The Senate passed the Small Business Lending Fund Act of 2010 which will free up bank’s capital by allowing them to amortize or write down losses over a 6 to 10 year period. The new legislation will create a $30 billion fund designed to boost lending to small businesses which suffered over the past few years in the financial crisis.
This new program would provide the funds to local community banks that would extend a line of credit to small businesses. An addition $12 billion would aid small businesses to write off the costs of equipment and making renovations up to $500,000. Those who are self employed will be able to deduct health benefits.
“This is a bill that would cut taxes and help provide loans to millions of small-business owners, who create most of the new jobs in this country,” President Barack Obama said in a statement. “Small businesses across the country have been waiting for Washington to act on this bill for far too long.”
Banks Bounce Back, Or have They?
David J. Lynch recently wrote an article “Banks bounce back, but can they handle the next crisis?” in USA Today. The real title of the article should have been “Banks bounce back, or have they?”
As Mr. Lynch so astutely points out , banks are still displaying poor signs as bank balance sheets are weak, and as Simon Johnson, an economist at MIT says that while banks are being more cautious, the overall “culture remains the same, and the system is largely unreformed.”
Merrill Lynch was merged under Bank of America, and Wachovia was absorbed into Wells Fargo. Citigroup was bailed out completely by the government.
However banks astoundingly were showing tremendous profits of $21.6 billion compared to a loss of $4.4 billion as of last year.
“Banks are very cautious about increasing the supply of their new loans. . . . Banks will not be taking the crazy chances they were back then, and we don’t want them to,” said Paul Ashworth, senior United States economist at Capital Economics.
But while banks are showing profits, millions of Americans are jobless as unemployment rates are unabated. Banks are lending, but scarcely as small businesses are not expanding.
One of the Obama administration’s main goals with their stimulus package was to modify the banking regulations so that a similar crash would not occur again. Banks will have to maintain higher levels of capital reserves. Still, many are skeptical that the banks have simply reverted back to their old ways, and that another banking crisis is inevitable.
For the original USA Today article.
Small Business Loan Lending Continues to Decline
Small business loan lending continued to decline in Milwaukee as the Small Business Loan Administration only approved $9.1 million, which is down from 29 percent from $12.7 million in August 2009. The number of loans is down almost by more than 40% from last year.
This past spring, the SBA ran out of funding for a stimulus package that eliminated and reduced many of the fees incurred, and increased guarantees to 90% for most small business administration loans.
A new stimulus package, The Small Business Jobs Act, passed the Senate this past Tuesday and will provide local banks up to $30 billion for expanding small business administration loan programs.
To Apply for a Small Business Loan
$30 Billion Senate Bill Moves Forward
A legislation bill which boasted a $30 billion lending package, $12 billion in tax breaks, and an additional $1.5 billion for various state loan programs and other tax breaks , jumped the 60-vote Senate bar on Wednesday. The bill is meant to help the thousands of small businesses in America which have been struggling in the economic downturn.
Welcome to Small Business Loans!
Small Business Loans is a website devoted to merchants and small business owners who are looking for information regarding obtaining a small business loan. Try out our new small business loan calculator by just filling out your information to the right! Merchants and small business owners alike, will find a wealth of information about business loans and the best plan for their business. Furthermore we welcome merchants to fill out the form on the right for a free consultation! The information provided on Small Business Loans is free and without any catches. We encourage our users to contact us with any questions they have on any of the content on the website or any questions which they might have regarding any of the information on the website.
Sincerely,
Small Business Loans Team
Debt Consolidation
Many merchants and small business owners suffer from high credit card debt and loans. An easy way to consolidate all that debt is by receiving a lump sum of cash to pay off venders, credit cards, and other financial institutions the small business owners owe. By consolidating debt into one payment, merchants can focus more on the actual running of the business rather than worrying about making payments. A merchant cash advance can payoff venders and credit cards and other bank loans. The small business owner will only be making 1 automatic payment to one institution.
There are also other resources that provide merchants and small business owners with information regarding outstanding loans. There are many community sites where one can receive personalized help to resolve debt related problems. One will find proper guidance on how to choose a good settlement service provider and tips for debt relief. ‘Credit card debt’ can help you to find the best debt settlement company in your state along with their contact details. One can get various types of information about different types of loans – student loans, personal loans, mortgage loans, and in addition, how to get out of a difficult financial situation. Debt consolidation is favorable for those who are struggling to manage multiple outstanding balances and cannot afford to make several payments each month. Finally financial tools are available to users in order to calculate debt and savings through consolidation or settlement.
Miami Herald Reports Push for Small Business Loans
Karen Mills, the administrator for the Small Business Association (SBA), is receiving praise for increasing lending to small businesses and in particular, credit for the government’s decision to guarantee 90% of loans for businesses that would not normally qualify.
In a Miami Herald interview, Mills said that Banks weren’t lending to small businesses because of two reasons 1) they didn’t have any money, and 2) they didn’t want to take the risk. They addressed the issue by releasing $30 billion to local and community banks. Yet it seems contradictory that the government is asking the banks to be more prudent with loans, and yet help small businesses. To that, she answered that they are encouraging the banks to use the government backed money, so that the loans would be insured, and the risk would be negligible.
SBA 504 Loan Total $19.3 Million in AZ
There is a great sign that the Arizona economy is bouncing back Bizjournals.com reported, as SBA 504 loans jumped to $19.3 million in Feburary, up from January’s $12.7 million and December’s $7.5 million.
SBA 504 financing helps small business owners purchase commercial real estate, including buildings and large real estate. The loan aids businesses in conserving working capital and helps them retain liquidity. The program was developed for entrepreneurs looking to expand by purchasing real estate for new businesses, thus stimulating growth and ultimately the economy.