SBA loan lending is up and for several good reasons. Some banks while still being stingy are more comfortable making a govt. backed loan than a loan directly to businesses. Additionally the Govt. Fiscal year is ending in less than two months.
Check out this great article by Kent Hoovers on Puget Sound Business Journal.
"With nine weeks remaining in the federal government’s fiscal year, lending through the SBA’s flagship 7(a) program this year had surpassed $12 billion. That’s $1 billion more in loans than were made during the same period two years ago." - Kent Hoovers, Puget Sound Business Journal
The biggest challenge from a marketing stand point is that SBA Loans are not right for every business, however there are lots of businesses that should be looking at them and or moving towards a point when they could get one.
Some people that should be interested in an SBA LOAN
- Up to 5 Million in Debt Financing
- Equity Available
- Restaurants that want to expand or Buy
- Businesses that want to expand or Buy
- Renter that wants to be an Owner and a landlord
Think about with the same mentality that people use to buy their own home. WHY AM I PAYING RENT WHEN I COULD BE BUILDING EQUITY WITH A MORTGAGE.
One of the key differences in an SBA Loan vs. a Home Loan is that you can actually borrow operating capital as well.
YES! you have to put equity aka "Skin in the Game" but it's debt and you are not giving away any equity in the company. So the idea of bringing in a few partners before the loan doesn't look that bad.
Read the article and if you are interested in help please contact me.
Craig G. Francis SBA Loan Broker CLICK HERE TO EMAIL