Using SBA 7(A) & SBA/CDC 504 loans for Working Capital, Equipment Financing, Real Estate Purchase, Debt Refinancing, Business Acquisition & More
A lack of access to financing can be a major impediment to rapidly growing a business. Qualifying for bank loans and financing is a tricky process. SBA loans are often viewed as an easy to get loan, but it is important to make sure you understand what the loans are for, and even more important to figure out which banks are interested in doing the loans for businesses in your industry. The Two primary types of … Read entire article »
Filed under: SBA
Three C’s to Qualifying For Bank Loans, Lines of Credit, Working Capital, Equipment Financing, Acquisition Financing and other Bank Financing
There are Three important keys to getting small business financing bank loans, whether it is in the form of a line of credit, working capital, equipment financing or even acquisition financing: Capital Capital is the up front funds the bank expects you to infuse into a business venture when applying for a bank loan. Banks refer to it as having “skin in the game.” If you don’t put up your share of the funds into a project, … Read entire article »
Filed under: SBA
Questions to ask a Bank about getting Small Business Financing, Lines of Credit, Loans & SBA Loans
If you are seeking Bank Financing for your small business in the form of a conventional loan, SBA loan, Line of Credit or some other financing, what are the questions to ask a bank to help you gauge the bank’s ability to come through for you? Here are three important questions to ask a bank when assessing the feasibility of procuring bank financing in the form of a loan or line of credit. Where is the … Read entire article »
Filed under: SBA
SBA Loans, Lines of Credit and other Financing for Small Businesses – Choose Local Community Banks
Getting an SBA loan, financing, lines of credit or other business loans for small businesses sounds like a simple affair. Just walk into the nearest big name national bank and apply. The same bank that airs many commercials on television proclaiming that the bank is helping America’s small businesses grow by offering them business loans and lines of credit. The thing is, that they do make plenty of loans, but primarily to very large ‘small businesses.’ This … Read entire article »
Filed under: SBA
Impact of Credit Issues For Business Owners Regarding Financing For Businesses
A great thank you to Fred Chen of CreditRepairTheSmartWay.com to sit down with us at Just Elementary, Inc. to discuss Credit issues for small business owners. Fred is kind enough to answer questions that are relevant to business owners about what they are up against when it comes to getting various financing options from banks. Just Elementary: Late payments are a death knell because they indicate a lack of responsibility on the borrower’s part to fulfill the … Read entire article »
Filed under: Business Tips, SBA
Basics of Applying for Lines of Credit, Working Capital & Business Acquisition Loans
Trying to get a Working Capital Loan, Line of Credit of Business Acquisition Loan? There are a lot of erroneous perceptions among business people about which facts, figures and terms are important in getting a loan and which bank to get loans from. If you are just starting out in business, one possible benefit from banking with a smaller community bank that is that you will be a bigger fish in a smaller pond, and you will … Read entire article »
Filed under: Business Tips, SBA
SBA Express Loans under $250,000 Easier to Get
A great article in the LA Times points out that the SBA loan programs is getting some needed modifications. We’ll specifically cover the smaller ‘Express’ Loans. ‘Express Loans’ is a term that describes SBA loans that are up to $250,000 in value. Express loans have been historically hard to get for a couple of reasons. Number 1, there is not a huge profit margin to them for a bank, and number 2, the bank had 50% … Read entire article »
Filed under: Business Tips, SBA
Failed Franchises Measured by SBA Loan Failure Rates
Sounds like strong language. Thanks to our friends at thefranchisehound.com we have a list of SBA Loan Failure Rates for loans doled out to franchised businesses. An important disclaimer is that the list is not the actual failure rates of franchisees for a the listed franchises, it is only a list of SBA Loans gone bad that were given to franchisees of the franchises. Note that even 3 of 14 SBA loans to McDonald’s franchisees … Read entire article »
Filed under: Franchises, SBA
Why You Can’t Get an SBA Loan
People complain that securing an SBA loan is too difficult. There are many factors at play, here we consider the impact of a Borrower’s Business Experience on their qualifications. In the early part of the past decade, as the economy grew at astronomical rates, the rate at which business bank loans went bad shrunk to and hovered at minuscule levels. Once this failure rate was super low for too long, enforcement of the experience criterion became … Read entire article »
Filed under: Business Tips, SBA
Franchising: CNBC’s ‘Inside’ Look at it
CNBC just broadcast a show highlighting five Franchise Brands. The official title is ‘Behind The Counter: The Untold Story of Franchising.’ The show had three story lines. One was about Franchisors doing a good job of growing and maintaining a brand (Proctor & Gamble and Five Guys), … Read entire article »
Filed under: Business Tips, Featured, Franchises, SBA, Uncategorized
CDC/504 SBA Loan Program
SBA/CDC 504 Loan Program The CDC/504 loan program is the only SBA loan in which the SBA puts up a single penny. Unlike other SBA loans, in which the SBA only provides a guarantee to the bank, in the CDC/504 program the SBA injects 40% of the Project cost into the loan. Fifty (50%) percent comes from the bank and the remaining (10%) comes from the borrower. So how does this program work? Well, a little … Read entire article »
Filed under: Business Tips, Real Estate Tips, SBA
RIOAC 10-18-10: JP Morgan Chase
Today was another of the Nick Lieberman interview series. The guest speaker was Scott Schweer of JP Morgan Chase bank. Schweer heads up a team that specializes in loans to Multi Family Investment Properties, mainly apartment complexes. More on Mr. Schweer in a bit, but there were a few interesting takeaways. Number 1, the financial qualifications of the borrower are taking a greater importance in the underwriting process. We’ve seen this across the board with banks for all types of acquisition loans (Businesses [SBA 7A], commercial properties [SBA 504], and Multi Family Investment Properties). Number 2, loan transactions are up significantly in 2010 compared to 2009. In particular, the stabilization of the rental market in most parts of California are one reason Schweer’s group is doing increased business in … Read entire article »
Filed under: SBA
Gilmore Bank Mixer 10-14-10
Some interesting nuggets came from the Gilmore Bank Mixer held at their branch location at the Grove/Farmer’s Market in Los Angeles. Number one, for those of you who don’t know, Gilmore banks owns the Real Estate that the Grove is developed upon. It is on a long term land lease to Rick Caruso’s company. Number two, Jim Roby and Cyrus Greene, both Gilmore associates involved in commercial lending, noted that of the applicants that they are reviewing for SBA loans, they have noticed an increase in 2010 revenues and profits over 2009 figures. Of course, this doesn’t mean all companies are experiencing a better 2010 over 2009, just that struggling companies may not bother to even apply for a virtually guaranteed no. Here is the one nugget to really take … Read entire article »
Filed under: Business Tips, SBA
CABB OC Chapter Meeting 9-28-10
I skipped today’s RIAOC meeting today due to a conflict with the CABB O.C. Chapter Meeting today. It was nice to catch up with a few Business Brokers that I had not talked to recently. Key takeaways from the meeting are that loans are happening for business acquisitions, but the adherence to criteria is a must. Namely, the experience criterion. Today, we were told that a buyer was able to secure an SBA loan for a … Read entire article »
Filed under: Business Tips, SBA
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