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Hub You - 7 SBA Loan Myths
There are many products and services online that can help you make money. The online money making world is very simular to the in person business worlds. alot of things are for sale and companies want help selling their product(s) and service(s). This is where a lot of stay at home parents and work from home people that make money in the comfort of their homes doing Affiliate marketing and Drop shippingCan this work for you? is often the question folks want the answers for the truth is yes it can work for you if you can afford to spend i would say at least 3 hours a day 5 days a week working on techniques to better help yourself learn the ropes of the online working world.The types of online business i am familiar with is affiliate marketing and drop shipping, with both your job is to market and sell companies product(s) or service(s).Affiliate marketing, internet marketing is another term often used affiliate marketing, ok, well affiliate marketing is challenging because with a
Financial Fact- The SBA defines a qualifying small business as “one that is independently owned and operated and which is not dominant in its’ field of operation.” The SBA does not discriminate between start-ups or established businesses, and company size requirements are not the same across the board. The actual standard used in determining qualification is calculated by number of employees or average annual receipts and varies by industry. For example, in the manufacturing and mining industries, a business can have no more than 500 employees to qualify. Average receipts in most retail and service industries can total no more than $5.5 million. The SBA size regulations are located at sba.gov. Most lenders can tell you immediately if your business qualifies regarding income and number of employees.
Myth #5- SBA loans require a lot of collateral
Financial Fact- S
There are many events outside of the workplace that can negatively impact workplace productivity. A major holiday and major sporting events (like the Super Bowl, World Cup or NCAA Basketball Tournament) are a few of these possible distractions.As people begin to think about, talk about and focus on these events, their focus may leave their work. Think about it: how many tournament brackets are filled out on office time? How much Christmas shopping gets done online at the office every year?This change of focus can lead to significant losses of productivity. As leaders we can’t remove the distractions – the events will still occur. Our job instead is to do what we can to recognize and take advantage of the situation however we can.I suggest the GAME approach to maintaining focus and productivity in the face of these outside distractions. Let me explain.G – Gauge the real level of interest.A – Acknowledge the potential distraction.M – Motiv
There are many myths surrounding SBA loans. Some of these myths are substantial and strong enough to discourage a small business owner from expanding, getting out from under onerous debt, or even staying in business. Understanding how an SBA loan works and how to successfully get one for your business is a matter of separating the facts from the myths. You may recognize yourself in some of the following misconceptions of SBA loans. You will finish this article more informed and in possession of the facts. The facts regarding SBA loans can help you to be a better, more successful small business owner.
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA recognizes that small business is critical to America’s economic recovery and strength, to building America's future, and to helping the United States compete in today's global marketplace. Although SBA has grown and evolved in the years since it was established in 1953, the bottom line mission remains the same. The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam.
THE 7 MYTHS
Myth #1- All banks evaluate the risks of a SBA loan request with the same viewpoint.
Financial Fact- Although all banks are subject to the same SBA Guidelines, the rules are subject to different interpretations with respect to analyzing a particular loan request. Some banks may be willing to take greater risks. Some banks will take a more optimistic evaluation of the facts and your business’ future success. Therefore, choosing the best bank for your SBA loan needs can make the difference between loan approval and denial.
Myth #2- All banks offer the exact same types of financing for SBA loans.
Financial Fact- Loan pricing and structure can vary substantially at different banks. Interest rates on SBA loans are based on the prime rate plus a margin. Some banks are more competitive in price to be leaders in SBA lending. Some banks will carve-out a provision for accounts receivable and inventory financing from their loan agreement to permit additional third party commercial financing in addition to the SBA loan. For the same loan, some banks will require additional collateral guarantees, such as a lien on your house. Evaluating the adequacy of such additional collateral guarantees is also subject to interpretation.
Myth #3- It takes too long to get through the red tape of SBA loans.
Financial Fact- This may be true if the bank has to deal through the SBA bureaucracy. Many lenders have “delegated authority” to directly approve a SBA loan. They can provide a full written loan proposal within 48 hours, and some provide a loan commitment within a week of receiving a full loan package. Closing the loan depends on the specific requirements of each transaction, but takes no longer than closing a conventional commercial loan. If the loan requires an appraisal, this may add several weeks to the process.
Myth # 4- SBA loans are only for start-ups or small companies, and not for “big” companies.
Financial Fact- The SBA defines a qualifying small business as “one that is independently owned and operated and which is not dominant in its’ field of operation.” The SBA does not discriminate between start-ups or established businesses, and company size requirements are not the same across the board. The actual standard used in determining qualification is calculated by number of employees or average annual receipts and varies by industry. For example, in the manufacturing and mining industries, a business can have no more than 500 employees to qualify. Average receipts in most retail and service industries can total no more than $5.5 million. The SBA size regulations are located at sba.gov. Most lenders can tell you immediately if your business qualifies regarding income and number of employees.
Myth #5- SBA loans require a lot of collateral
Financial Fact- SB
When you are looking to hold an annual general meeting (AGM), there are a variety of things to consider when selecting an appropriate venue to host the gathering. Not only will you be looking for a suitable professional venue to reflect the image and purpose of the company or trust, you will also need to consider the availability of professional and business support services, location and accessibility, comfortable accommodations for meetings that last days rather than a few hours, and the size of venue that can hold your attendees.Annual general meetings (AGM) for many companies and trust organisations are major highlights of the business year requiring a great deal of logistical organisation. These meetings also provide an opportunity to demonstrate to shareholders and investors the results of business performance over the last financial year as well as management plans for the future. It is essential that the right venue be selected, as proper consideration in choosing the venue to hold
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA recognizes that small business is critical to America’s economic recovery and strength, to building America's future, and to helping the United States compete in today's global marketplace. Although SBA has grown and evolved in the years since it was established in 1953, the bottom line mission remains the same. The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam.
THE 7 MYTHS
Myth #1- All banks evaluate the risks of a SBA loan request with the same viewpoint.
Financial Fact- Although all banks are subject to the same SBA Guidelines, the rules are subject to different interpretations with respect to analyzing a particular loan request. Some banks may be willing to take greater risks. Some banks will take a more optimistic evaluation of the facts and your business’ future success. Therefore, choosing the best bank for your SBA loan needs can make the difference between loan approval and denial.
Myth #2- All banks offer the exact same types of financing for SBA loans.
Financial Fact- Loan pricing and structure can vary substantially at different banks. Interest rates on SBA loans are based on the prime rate plus a margin. Some banks are more competitive in price to be leaders in SBA lending. Some banks will carve-out a provision for accounts receivable and inventory financing from their loan agreement to permit additional third party commercial financing in addition to the SBA loan. For the same loan, some banks will require additional collateral guarantees, such as a lien on your house. Evaluating the adequacy of such additional collateral guarantees is also subject to interpretation.
Myth #3- It takes too long to get through the red tape of SBA loans.
Financial Fact- This may be true if the bank has to deal through the SBA bureaucracy. Many lenders have “delegated authority” to directly approve a SBA loan. They can provide a full written loan proposal within 48 hours, and some provide a loan commitment within a week of receiving a full loan package. Closing the loan depends on the specific requirements of each transaction, but takes no longer than closing a conventional commercial loan. If the loan requires an appraisal, this may add several weeks to the process.
Myth # 4- SBA loans are only for start-ups or small companies, and not for “big” companies.
Financial Fact- The SBA defines a qualifying small business as “one that is independently owned and operated and which is not dominant in its’ field of operation.” The SBA does not discriminate between start-ups or established businesses, and company size requirements are not the same across the board. The actual standard used in determining qualification is calculated by number of employees or average annual receipts and varies by industry. For example, in the manufacturing and mining industries, a business can have no more than 500 employees to qualify. Average receipts in most retail and service industries can total no more than $5.5 million. The SBA size regulations are located at sba.gov. Most lenders can tell you immediately if your business qualifies regarding income and number of employees.
Myth #5- SBA loans require a lot of collateral
Financial Fact- S
IntroductionAfter going to school to become a nurse, you will want to find a job. The interview process is a vital component in starting a career. A successful presentation will greatly improve your chances of being hired.It is important to become proficient in the interview process. Most times, your resume will get you the interview, and the interview will get you the job. The following article will address components of the interview process and provide tips and suggestions to facilitate your success.Before the interviewThe better prepared you are before your nursing interview; the more likely the occasion will become a triumph. Be sure to bring a list of your references, extra copies of your resume, and a list of questions you will ask the employer.Familiarize yourself with the employer before the interview process. Learn about their mission statements, ideologies, their past, their present direction, and their future goals. The more you know about the co
THE 7 MYTHS
Myth #1- All banks evaluate the risks of a SBA loan request with the same viewpoint.
Financial Fact- Although all banks are subject to the same SBA Guidelines, the rules are subject to different interpretations with respect to analyzing a particular loan request. Some banks may be willing to take greater risks. Some banks will take a more optimistic evaluation of the facts and your business’ future success. Therefore, choosing the best bank for your SBA loan needs can make the difference between loan approval and denial.
Myth #2- All banks offer the exact same types of financing for SBA loans.
Financial Fact- Loan pricing and structure can vary substantially at different banks. Interest rates on SBA loans are based on the prime rate plus a margin. Some banks are more competitive in price to be leaders in SBA lending. Some banks will carve-out a provision for accounts receivable and inventory financing from their loan agreement to permit additional third party commercial financing in addition to the SBA loan. For the same loan, some banks will require additional collateral guarantees, such as a lien on your house. Evaluating the adequacy of such additional collateral guarantees is also subject to interpretation.
Myth #3- It takes too long to get through the red tape of SBA loans.
Financial Fact- This may be true if the bank has to deal through the SBA bureaucracy. Many lenders have “delegated authority” to directly approve a SBA loan. They can provide a full written loan proposal within 48 hours, and some provide a loan commitment within a week of receiving a full loan package. Closing the loan depends on the specific requirements of each transaction, but takes no longer than closing a conventional commercial loan. If the loan requires an appraisal, this may add several weeks to the process.
Myth # 4- SBA loans are only for start-ups or small companies, and not for “big” companies.
Financial Fact- The SBA defines a qualifying small business as “one that is independently owned and operated and which is not dominant in its’ field of operation.” The SBA does not discriminate between start-ups or established businesses, and company size requirements are not the same across the board. The actual standard used in determining qualification is calculated by number of employees or average annual receipts and varies by industry. For example, in the manufacturing and mining industries, a business can have no more than 500 employees to qualify. Average receipts in most retail and service industries can total no more than $5.5 million. The SBA size regulations are located at sba.gov. Most lenders can tell you immediately if your business qualifies regarding income and number of employees.
Myth #5- SBA loans require a lot of collateral
Financial Fact- S
Whenever I can, I try to frequent locally owned and operated businesses. To be even more specific, non-franchised businesses. You're now asking "why?" Before I get into that, I will say that I believe that chains, franchises and large corporate owned businesses have their place in our consumerist society. However, how did most all of the big companies start? That's right. They started as small, locally owned and operated businesses.If the big businesses (a most typically we're talking about eating establishments) started out as local places, then what's the problem with frequenting them? There is no problem per se; it's more about supporting local business owners while at the same time ensuring we have a continual stream of new choices. Additionally, when you're traveling, it's a great idea to find the best local spots.I know that going to a chain or franchise can be comforting. You know what you're going to get. That's fine, but can you really get a feel for a city or town f
Myth #3- It takes too long to get through the red tape of SBA loans.
Financial Fact- This may be true if the bank has to deal through the SBA bureaucracy. Many lenders have “delegated authority” to directly approve a SBA loan. They can provide a full written loan proposal within 48 hours, and some provide a loan commitment within a week of receiving a full loan package. Closing the loan depends on the specific requirements of each transaction, but takes no longer than closing a conventional commercial loan. If the loan requires an appraisal, this may add several weeks to the process.
Myth # 4- SBA loans are only for start-ups or small companies, and not for “big” companies.
Financial Fact- The SBA defines a qualifying small business as “one that is independently owned and operated and which is not dominant in its’ field of operation.” The SBA does not discriminate between start-ups or established businesses, and company size requirements are not the same across the board. The actual standard used in determining qualification is calculated by number of employees or average annual receipts and varies by industry. For example, in the manufacturing and mining industries, a business can have no more than 500 employees to qualify. Average receipts in most retail and service industries can total no more than $5.5 million. The SBA size regulations are located at sba.gov. Most lenders can tell you immediately if your business qualifies regarding income and number of employees.
Myth #5- SBA loans require a lot of collateral
Financial Fact- S
More than a few people prefer to form corporations to protect their businesses, but look for a more favorable tax situation. The answer, of course, is the S-corporation.For a long time, corporations were the dominant business entity available to most business. With their rigid rules protecting shareholders from personal liability for the debts of the business, they were a smart and popular choice. The downside of the corporate entity, however, had to do with taxes. Simply put, a double taxation situation arose because the corporation had to pay taxes on its profits and then the shareholders had to also pay taxes on their dividends and earnings.The IRS eventually got around to dealing with the double taxation issue. Well, Congress did. Instead of changing how the corporation was taxed, Congress enacted Subchapter S of the internal revenue code. This section, of course, lends its title to the name of the “S” corporation.The goal with the new tax code section was to give small bus
Financial Fact- The SBA defines a qualifying small business as “one that is independently owned and operated and which is not dominant in its’ field of operation.” The SBA does not discriminate between start-ups or established businesses, and company size requirements are not the same across the board. The actual standard used in determining qualification is calculated by number of employees or average annual receipts and varies by industry. For example, in the manufacturing and mining industries, a business can have no more than 500 employees to qualify. Average receipts in most retail and service industries can total no more than $5.5 million. The SBA size regulations are located at sba.gov. Most lenders can tell you immediately if your business qualifies regarding income and number of employees.
Myth #5- SBA loans require a lot of collateral
Financial Fact- SBA lenders do consider collateral when reviewing a loan application, but they also look at several other factors. Your character, your creditworthiness with respect to you history of paying your debts, your management capabilities, and your equity contribution are just as important as having collateral. SBA lenders.look at your business as a whole, and although they will not deny you loan solely due to lack of collateral, it can be a contributing factor if there are other weak spots in you application. Ultimately, your ability to repay the loan from your business’s cash flow is the most important consideration.
Myth #6– SBA loans are loans from the Federal Government.
Financial Fact - SBA loans come from commercial lenders who participate with the SBA in SBA lending. The Small Business Administration is an agency of the executive branch of the Federal Government. It establishes guidelines that lenders must follow when giving SBA loans and the SBA backs each loan with a guarantee that eliminates some of the risk to the lender. The actual funds for each loan will come directly from the financial institution. The SBA loans are backed, up to the amount of the guarantee, by the SBA.
Myth # 7- SBA loans are a loan of last resort.
Financial Fact- Lenders that offer SBA financing should be one of the first places a start-up or small business owner goes when seeking a business loan (unless you have a friend or relative willing to invest in your business). The express purpose of the SBA is to help Americans start, build, and grow businesses in order to promote a healthy economy. SBA loans are structured with longer terms, lower down payments, and can have lower rates than conventional commercial loans so small business owners have increased cash flow. Going to a lender for a SBA loan is especially valuable for business owners seeking loans who may not have collateral required with typical commercial loans. There is a reason the SBA is the largest single financial backer of U.S. businesses in the nation.
You need to assess your business’s current health and growth potential. Would it benefit your company if you refinanced old debt? Could you increase business with more equipment? Would a facelift bring in more customers? Would a combination of SBA financing with commercial financing for accounts receivable and inventory help you succeed?
It is critical to your business that you know not only when to seek financing, but how much you will need, and what is available. Many businesses suffer of even fail because their owners do not take out loans when they need to; or they fail because their owners do not borrow enough. Understanding your options will help you determine these things, which can in turn help your business flourish.
Conclusion: An experienced Commercial Finance Broker can help you separate the myths from the financial facts. They can find the best SBA loans. They can evaluate the best overall financing structure for your particular situation with lower interest rates, longer payback times and lower upfront costs. They can help you understand the big picture and create new opportunities for your consideration.
Copyright © 2007 Gregg Financial Services
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