Small Business Loan Options
By Adam Smith
Confusion abounds in the small business loan world. You know you want to start a small business but cannot figure out what kind of business loan you need. You have it narrowed down to a small business loan of course, but even in the small business loan arena there are a variety of different types of SBA loans. So what kind of small business loan is right for you? Will a basic 7(a) fit your needs or do you need the 504 SBA loan? Or does your situation require a CAIP loan? Maybe a LowDoc SBA Loan is just what the doctor ordered.
To sort this mess out lets take a look at the various different kinds of small business loans that are available to you so that you can decide which business loan will fit your needs.
SBA Microloan - For those in need of less that $25,000 to start your business then looking at a SBA mircoloan is a good place to start. These loans are designed to help get businesses off the ground or to help your business through a short downturn in profitability. It is also important to note that interest rates tend to be higher on this type of small business loan.
LowDoc - As you might expect the LowDoc small business loan requires very little paperwork. In fact, the initial application for the LowDoc small business loan consists of just one page. You can apply for a loan up to $100,000. The LowDoc loan is made on the basis of your character and personal credit so it can be helpful to those starting small businesses but lack a business credit history.
Basic 7(a) SBA loan - This type of small business loan can range up to $750,000 and is backed by the SBA but is actually issued by commercial lenders. These SBA loans are normally relatively easily to qualify since they are backed by the Small Business Administration, a government entity.
504 SBA loan - A 504 SBA loan can be acquired up to $1 million. However, the loan cannot be used to finance more than 40 percent of the business venture or project. This type of business loan is ideal for individuals who possessing strong assets and who can show the positive effect (in terms of jobs created) your business will have on the community.
Community Adjustment and Investment Programs(CAIP) - This loan program was developed to help small businesses create more jobs or prevent potential job less. The hitch is that for your application to be approved you must show that your business is in jeopardy as a result of trade changes in either Mexico or Canada.
As you can see there are a variety of different options available for you business loan needs. It is up to you to do your homework and determine which small business loan is right for you. For more business advice and counsel visit AllBusiness.com About the Author
Adam Smith is an informational author for 10X Marketing. For more information on small business loans please visit SNCLoans.com
Article Source: http://www.simplysearch4it.com/article/18416.html
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/18416.html" as shown above and make it hyperlinked. |
Some other articles by Adam Smith | Spending the Millionaire Cash Flow Are you sure you want to be rich? I mean really rich? Like the kind of rich where you ...
The One Great Way to Make Money Is there one great way to make money? The simple answer is no. In fact there are a variety of great ways to make money. Just ask ...
Robert Allen's Investment Property With The One Minute Millionaire, Robert Allen introduced to the world the enlightened way to accumulate millions of dollars. The ...
Eviction Explained Have you ever been evicted? If you have, then you are probably all too familiar with the eviction process and the rights that both the tenant and the landlord retain throughout the eviction process. ...
Creating an Interactive Map What is the real problem with charts and maps on the web? If you are like me you come across them all the time, but most of these ...
Getting to Know Your Land Contract In a real estate broker business, almost every thing revolves around land. Obviously it is hard to run a business centered around land without knowing where to acquire prime ...
|
|
|