SBA Loans For Small Businesses - Is it a Good Choice?
The Small Business Administration (SBA) provides loans to small businesses. There are various SBA Loans Daytona Beach, each having their own characteristics. Some SBA Loans are made by SBA Members, others are offered by SBA Members only and there are SBA Loans for which the lender must be a member. In addition, there are SBA Loans that lenders must get approval for before they can apply. All this is detailed in the glossary at the end of this article.
The SBA Loans for small businesses can be used for buying land, buildings or machinery. However, a lender may also give SBA Loans for financing a variety of activities related to the construction, landscaping or renovation of buildings, including electrical work, plumbing, carpeting, painting, walls and other interior and exterior remodeling. These loans are generally made with the assistance of a local office that can provide necessary information and assistance as well as act as an intermediary between the lender and borrower. To qualify for an SBA loan, a lender must meet certain criteria, including his experience and financial condition, his business plan and his repayment capacity.
Since most SBA Loans are made on a secured basis, lenders require borrowers to put up collateral. This might be any valuable asset that the borrower has such as his house, stocks, business bonds, automobiles and the like. If the SBA fails to recover the amount lent, the assets pledged will be forfeited. In order to get approved for SBA Loans, you must meet the eligibility criteria.
SBA Loans are generally made available through special financing programs called federal loans. Under such programs, financial assistance is extended to small businesses based on their need for capital. SBA Loans for a small business can be used for many different purposes, including purchasing additional equipment or workspace, opening new offices or building, obtaining land for plant and growth, and more. To apply for SBA loans, you must be a member of a lending agency that is approved by the SBA.
Besides SBA Loans, there are several other options for small businesses to raise working capital. One option is to get credit counseling from a third party organization. Such counseling services can also help you decide whether or not you need to seek SBA loans for your working capital loans. A number of non-traditional financial assistance sources are also available to borrowers of SBA loans, such as local credit unions, commercial real estate lenders, and home equity loans.
The Small Business Association provides a number of financial assistance resources to help borrowers of SBA loans to find the best loan option. One such resource is the Small Business Development Center (SBDC), which provides a database of all federal loan programs for small businesses. The SBDC has comprehensive listings of all loans that are currently available for borrowers to apply for. In addition, the center provides a list of SBA banks that provide SBA loans, along with their loan information. The SBA conducts one of the largest seminars on financing every year in partnership with the Financial Planning Association of America (FPAA). You can register for both events online and attend a low cost seminar in Atlanta, Georgia if you have the opportunity to do so.
There are also a number of online SBA loan resources. The SBA website provides a listing of all current loan programs for small businesses. The website also provides lenders specializing in SBA loans. In addition, the SBA offers a loan search tool that can help you locate SBA-approved loan providers in your area. If you have questions about SBA loans or other loan products, you can contact the lender directly through its website or through FPAA.
One last way to get working capital financing is to consider starting a business that specializes in providing loans to small businesses. A good lender will be willing to work with you, as you are a working capital specialist, and not a loan banker. However, the SBA does have a listing of some well-known lending companies on its website, so it may be worth a look. Another resource for finding lenders that specialize in this type of lending is "EOB" - The Enterprise Fundamentals website. This site has a listing of more than a hundred financial organizations, as well as a directory of SBA-approved loan providers. You can also contact "EOB" for more detailed information about working capital options.
