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SBA Loans and Grants
Posted on 12/5/18 at 8:44 pm
Posted on 12/5/18 at 8:44 pm
Anyone get them before? Im looking to start a business and will need funding. Any experiance with it?
Posted on 12/5/18 at 9:05 pm to Mud_Till_May
Home Depot going through layoffs again?
Posted on 12/6/18 at 4:54 am to iAmBatman
quote:
Home Depot going through layoffs again?
Leave this kind of stuff in the OT.
OP, you need to be more specific.
Some things to consider, SBA is a government program...It can be great, it can be terrible. Many of their loans are not the lowest you can get if you can secure private loans. All things being equal, an SBA loan will usually be more than a private loan. You need to understand that if you can't obtain a private loan then there is a good chance you shouldn't get a loan. Many government programs are there to "help" people but in reality allow them to do things that a private business is saying "doesn't make any sense". Therefore, the government loan can get you in a deeper hole with higher interest.
Private loans are difficult to acquire without some equity of your own (IE HELOC), equity involved in the loan ( IE purchase of real estate or a vehicle), or a long business financial history. If you have none of the 3, that's where an SBA loan comes in. Given that, the rates are going to be high with none of those 3. So you need to be damn confident in your numbers that you NEED the loan.
For example, if you are starting a new small company in sales and you need to rent an office space and need working capital. There's no equity or history, you may be able to obtain an SBA loan but its going to be incredibly high interest.
This post was edited on 12/6/18 at 4:59 am
Posted on 12/6/18 at 8:22 am to baldona
quote:
Leave this kind of stuff in the OT.
Don’t be a pussy, just answer the guys question
Posted on 12/6/18 at 8:40 am to baldona
quote:
Leave this kind of stuff in the OT.
No
Posted on 12/6/18 at 9:02 am to Mud_Till_May
Just a word to the wise. I am not sure if their loans and mortgages are executed the same way, more specifically collateral for those loans, but I would only assume that they are. My fiance and I are currently in the process of purchasing two lots to build our house on. The previous owner had an SBA mortgage on the home that was there before Katrina, then another on his new home that he purchased after Katrina. In both instances, SBA took out a lien on every piece of property that he owned, with the stipulation that if either piece is sold, 100% of the proceeds will go to SBA until each mortgage is paid off. Was a major hurdle we had to get over, as the seller was not aware of these stipulations, especially that he would not see a cent from the sale of his lots. So, just fyi, before you get involved with them, know what you are getting into. Hope this helps and good luck!
Posted on 12/6/18 at 10:27 am to IHuntdux
From what I looked into, that’s one of the ways that SBA is able to loan to more ‘questionable’ people than a private loan. They have more ways of guaranteeing the loan.
Posted on 12/6/18 at 2:21 pm to Mud_Till_May
The more of a minority status you can get as principals of the company, the more money and better terms you can get.
It's been a few years since I looked into it, but that's how it worked back them.
Unfortunately you really have to go into a bank and spend a few hours with a salesman as they process it and see what gets kicked out as far as terms.
It's been a few years since I looked into it, but that's how it worked back them.
Unfortunately you really have to go into a bank and spend a few hours with a salesman as they process it and see what gets kicked out as far as terms.
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