How To Get A $50K Small Business Loan In 3 Days Business Investment Funding
The US Small Business Administration has introduced different types of loans to provide financial assistance to startup companies and help them to run their businesses successfully. This government agency of the United States offers these loans to the startup owners who are not eligible to get money from banks or other traditional financial organizations. In fact, these funds are designed with the objective of supporting the growth and development of these companies and improving the economic situation of the United States. Here are a few essential facts that you should know about the lending options offered by the Small Business Administration.
No disposal of loan directly from SBA
SBA does not offer these funds directly to the people who want to borrow money for different purposes. In fact, the organization works in partnership with multiple lenders, community development companies and micro-lending agencies to offer the money. Plus, it takes the responsibility of determining the terms as well as regulating these loans.
Devoid of credit background check
Unlike traditional lending companies, the SBA does not check the credit records before offering the money. It means that you can get money with bad credit records such as insolvency, bankruptcy and so on.
Multiple loan programs
The loans offered by SBA are divided into different categories such as 504, Express, Patriot and 7 (a). These funds are offered to the businesses depending on their requirements and preferences. However, it is important to remember that the banks or other private organizations may not provide these funds. The loan programs might vary and the requirements are set on the basis of the individual terms or policies offered by the banks.
A great help for startup companies
Small companies are in need of these funds than the popular ones. The reason is that these companies have started their journey and do not have sufficient amount of money in order to make a good investment. It would therefore be difficult for them to get the loans at high rates of interest. Unlike traditional lending firms, the SBA offers them at low rates of interest, thereby allowing the borrowers to repay the money quickly.
Submission of necessary documents
In order to secure the funds, you have to submit necessary documents to SBA as well as the lending companies offering the loan. Besides these essential documents, you also have to complete other important formalities such as submission of financial statement, business plan, financial statements, documents related to tax return and other important information associated with loan acquisition.
Act as guarantor
The banks and other private financial organizations do not offer funds to the borrowers who do not have properties that can be used as collateral. For these borrowers, the SBA acts as guarantor. The guarantee offered by SBA provides these banks the assurance that these funds would be reimbursed quickly.
Fast loan acquisition
Obtaining small business funds from the Small Business Administration is a speedy process. They are like ready-made money that may be secured once you apply for them.
Miner Capital Funding, LLC is one of the leading finance company that provides commercial real estate loans to the customers. One of the providers of small business loans, Miner Capital is expert in offering traditional, bridge and SBA loans to numerous clients in USA.
Small business financing (also referred to as startup financing or franchise financing) refers to the means by which an aspiring or current business owner obtains money to start a new small business, purchase an existing small business or bring money into an existing small business to finance current or future business activity. There are many ways to finance a new or existing business, each of which features its own benefits and limitations. In the wake of the recent financial crisis, the availability of traditional types of small business financing dramatically decreased. At the same time, alternative types of small business financing have emerged. In this context, it is instructive to divide the types of small business financing into the two broad categories of traditional and alternative small business financing options.
Here’s a simple yet practical guide on how to go about preparing to apply for a small business loan.
1. What criteria do banks look for in making small business loans?
Different banks or lending institutions may have different standards, but in general, in order to consider your application for a small business loan, banks will require:
•The loan must be for a sound business purpose. For SBA-guaranteed loans, the business must be eligible based on size, use of loan proceeds and the nature of the business (no lending, speculating, passive investment, pyramid sales, gambling, etc.)
•You and your partner(s) are of good character, have experience and good personal and/or business credit history
•Ability to pay back the loan- reasonable to strong collateral (personal and business assets) is very important. SBA expects the loan to be fully secured, but we will not decline a request to guaranty a loan if the only unfavorable factor is insufficient collateral. And of course, owners must have personal equity investment in the business/skin in the game.
Money is the lifeline of any business, so whether you’re starting a business or running an existing one, securing financing is a major factor, especially for small businesses.
SBA small business loans range from about $5,000 (microloans) to $5 million (largest guaranteed) with the average loan around $371,000.
5. How can you get financing to start a business since many banks want to fund growth?
Start-ups are probably the most difficult ventures when it comes to securing financing. Many start-up businesses seek financing from family, friends and credit cards. If the credit is sound, the business plan strong and you have enough personal resources to invest and collateral to guarantee, smaller, community banks and other community financial institutions and Credit Unions may consider lending you money.
Your best bet by far is SBA assistance. Begin by visiting SBA’s website , where you will find a wealth of information not only on how to secure a small business loan but equally importantly, other services and training opportunities to help you succeed.
6. Are there associations that can help?
SBA works closely with a large network of partners that leverage SBA resources and are just one phone call away and ready to provide extensive help.
•SBA District/Branch Offices– at least one in every state
•SCORE– (approximately 300 chapters nationwide)
•SBDCs — Small Business Development Centers; (approximately 900 locations nationwide; associated with higher education institutions (colleges and universities)
•WBCs- Women’s Business Centers (approximately 100 educational centers nationwide)
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