From : U.S. Small Business Adminstration
Location : Washington , D.C.
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Question :
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Unfortunatly we are out of time for the webchat. We appreciate all your great question about SBA lending and resources.
Thank you for your interest and I would again like to encourage you to reach out to your local district for specific questions related to your business.
Best regards,
Eric
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From : ELLEN BRITTON,snowflakes612003@yahoo.com
Location : Keysville , VA
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Question :
I WANT TO OPEN UP A STORE HERE IN TOWN BUT I NEED HELP WITH MONEY TO GET STARTED.. THIS HAS BEEN MY DREAMS FOR YEARS NOW AND I WOULD LOVE TO DO THIS FOR KIDS HERE CAUSE THEY HAVE NO WHERE TO GO... I WANT TO SALE CANDY AND THINGS FOR KIDS HERE AND MISC ITEMS...I NEED TO KNOW HOW DO I GET STARTED ON FILLING OUT FOR A GRANT FOR HELP ON THIS AND MINE DREAMS TO COME TURE..
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SBA does not offer grants to small businesses. The agency does, however offer a loan guaranty program to assist with financing a small business. Contact your local SBA district office for additional assistance.
SBA offers numerous resources to assist individuals who are interested in stating a business. Suggest you review several of the agency’s free online courses on this topic. Go to www.sba.gov and click on Free Online Courses. After you have reviewed the training materials, contact a SCORE counselor to discuss your business plans. Go to www.SCORE.org.
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From : mattie
Location : eucild , ohio
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Question :
where can three women get monies and help to start a billing business, and go to some semiar
about sba in ohio.
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The SBA does offer numerous programs and resources to help firms through the challenging time of a slowing economy. I suggest you first review, several targeted free online courses on the topic. Go to www.sba.gov and click on Free Online Courses. Review the courses and tools under the heading, Surviving in a Down Economy. In addition, contact a SCORE or Small Business Development Center business counselor or coach to discuss your particular circumstances. To find a SCORE or SBDC representative in your area go to: http://www.score.org/index.html or http://www.sba.gov/aboutsba/sbaprograms/sbdc/sbdclocator/SBDC_LOCATOR.html, respectively.
Automated Business Plan Template
http://web.sba.gov/busplantemplate/BizPlanStart.cfm
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From : Matt Tuohy
Location : Indianapolis , IN
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Question :
Has the new structure for assembling SBA loan pools to help lenders sell the loans to the secondary market helped to improve lenders liquidity?
Has the interium rule to allow SBA loans to be made with a base interest rate using the one month LIBOR rate helped to alleviate the frozen lending market due to liquidity concerns?
Has the number and/or dollar volume of SBA backed loans made during this past fiscal quarter increased over this same period last year or have the numbers fallen? Trying to gage if lenders activity is the same, greater or less.
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Matt,
We have received very positive feedback from the lender community about the addition of LIBOR as a base rate and the changes to secondary market pooling mechanisms. However, the secondary market for SBA loans continues to suffer from a lack of liquidity. SBA has worked closely with the Treasury Department and the Federal Reserve Bank on its lending program to investors who purchase asset-backed securities including SBA loans. This program is expected to begin in Feb. and we are confident it will help increase liquidity for SBA-backed loans.
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From : John
Location : ,
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With hundreds of SBA lenders out there, how can a small business owner seeking to expand with SBA loans find the most aggressive lender? Which banks are more likely to lend in this economic climate to small businesses?
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Lender Relation Specialists in your local district office will be able to help you find a lender in your area that is active in making SBA backed loans. I also encourage you to speak with other small business owners about who they bank with and try and get a referral.
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From : Stacy Wilde
Location : Phoenix , Arizona
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Question :
What is being done about predatory lending from the credit card companies? I understand there are laws to get this under control in 2010, but in the meantime, we are experiencing interest rate hikes exceeding 20% and 30%, even though we have never exceeded our limits or had any late payments. In addition, limits are being reduced, which is driving down our credit scores through no fault of our own. Who are the Small Business Advocates? Why are the large corporations getting all the relief, when small businesses generate the majority of the revenue and employ most of the people? The banks are the ones threatening our survival with these tactics; this has TRIPLED our overhead in a time that we have no choice but to rely on credit to survive. What action should we be taking to be heard?
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Stacy,
For more information about what the government has done about the credit card interest rates, please visit the Federal Trade Commission at www.ftc.gov
For your financing needs you should consider a loan which will usually provide you with a better interest rate. One SBA product that can substitute for credit cards is an SBA Express loan. You can find more information about this program on the SBA website.
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From : Don
Location : ,
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Question :
During this credit crunch some business owners not only took an unavoidable hit on their credit access but on credit histories (FICO) scores too. Does or will the SBA have a program in place for small business owners to access credit at competitive rates even if their credit score is not in tip top shape?
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Don,
All SBA loan products are for borrowers who are unable to obtain financing on the same terms through normal lending channels that do not have the government guarantee. Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.
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From : John Sterlin
Location : Seattle , WA
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Question :
What is the maximum SBA loan amount if any?
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The maximum SBA loan amount is currently $2 million under the 7(a) loan program. Under the 504 loan program there are loan amounts up to $4 million depending on your industry.
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From : Henry Kon
Location : Franklin , Tn
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Are there any programs where the federal government will directly loan money to a small business with out using a bank
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The SBA extends financial assistance to for-profit small businesses mainly through the 7(a) Guaranty Loan Program. This is a program where private sector lenders, such as banks and other financial institutions, make the loans with an SBA guaranty.
The SBA does not have any direct loan programs, except for a natural disaster.
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From : Chris
Location : Buffalo , NY
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Question :
With banks tightening their credit standards and revenues within the economy at large decreasing, what do you think are the keys to growing and substaining a small business within the current environment?
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One of the most important things you can do is to listen to your customers, look for new market opportunities and improve efficiencies within your business.
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From : David Fisher
Location : ,
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There are rumors about temporarily eliminating loan fees for the bank and borrower, increasing guarantee percentages, and interest rate spreads to make lending more attractive to the banks. Is any of this true, and how soon would this come in to effect?
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David,
There have been a number of proposals from a number of sources to eliminate loan fees, increase guarantee percentages and change interest rate spreads among other things...Any of these changes would require action by Congress. It is important to keep in mind that most sba-backed loans are floating rate loans and with the decline in the prime rate of 5% point over the last 18 months the cost of a loan has gone down dramatically. SBA has also taken several steps to make the loan programs more attractive to lenders inlcuding adding LIBOR as a base rate.
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From : John Miller
Location : Denver , Pa
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Good morning;my question is,i would like to start a line of personal care products.can i still get a micro loan from the SBA?Best regards J.Miller
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Microloans remain available and an excellent source of capital. You can find a microlender through your local district office at www.sba.gov This program provides very small loans to start-up, newly established, or growing small business concerns. In addition, the microlender provides business counseling to the borrower. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.
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From : John
Location : ,
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Question :
We started a new business one year ago, and at the time we had enough capital to last us a comfortable 2-3 years. We are located in the tourist district of Orlando, very close to DisneyWorld & Universal Studios, so our business should have broken even within six months of starting operations. Recently, we calculated that if it the recession hadn't hit this hard, we even would be showing a few hundred dollars profit each month after Sep. 08; not bad for first year. Unfortunately, now we find ourselves in a difficult situation: no customers, sales down 50% since a year ago, and our operating capital barely enough for the next 3-4 months. I am thinking of securing another line of credit at my local bank, but my fear is that this recession may last 1 or more years, and we'll be wasting our money while saddling us with more debt to pay later. We've sent a letter to ask our Landlord to renegotiate our Lease and we expect to hear this month, but the uncertainty is so huge. Today, I only sold a $7.00 item at my store on supposedly busy Int'l Drive, with thousands of hotel rooms nearby. But I'm being told, the hotels are empty, and may be for a while. We are betwen a rock and a hard place, unable to plan, because planning involves taking on debt that we shouldn't have to take had the economy been better. How should we proceed? On the other hand, we don't want to jump ship too soon...what if the economy recovers and we end up losing this prime location. Opportunities like this don't come around but once in a lifetime. Thank you, very much.
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John,
Thank you for your question. Unfortunately the economic uncertainty has forced business owners to face some difficult decisions about their business. The Department of the Treasury and the Federal Reserve Bank along with SBA have taken many steps to restore the financial markets and get the economy moving again. However, it is difficult to predict when industries such as hospitality which your business relies on will return to normal levels. To get a sense of the prospect for the local economy I would talk to local business groups such as the chamber of commerce or SBA’s Miami District Office website has a link to resources in your area which may also have good information about the local economy.
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From : David Felice
Location : Tampa , Florida
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After experiencing a corporate downsizing, I have have established my own consulting firm. My experience indicates that there is a dearth of loan programs (or willing lenders) unless a company has a 2 year history. Am I wrong? What programs are available for a start-up?
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David,
According to the Urban Institute a non-profit research group 1/3 of all SBA-backed loans go to startup companies. I believe that a realistic business plan will go a long way towards showing lenders your experience and your plan to get clients and become profitable. Good luck with getting your business off the ground and SBA district office are happy to help you.
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From : Sandi Turner
Location : Davenport , FL
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Sales are down. Applying to banks has been fruitless. In trying to secure al small sba since 06/08 the only thing that has happened has been a lowering of my credit score and a worsening economy. Why won't the sba declare a financial disaster and loan directly to small businesses? I am certain that many of us will be unable to continue to operate, we need help now!
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SBA’s disaster authority is limited to natural disasters. Despite this limitation, I would strongly encourage you to keep trying with lenders. We have seen that going into meetings with banks with a really solid business plan can go a long way to showing the lending officer the prospects for your business and how your business is their best option. SBA resource partners can be helpful in this effort. Also, talk to other business owners that you may know to solicit advice on what they have done to obtain financing. It is always good to have a referral from other businesses that do business with the bank when you approach them.
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From : Bill Brennan
Location : ,
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An SBIC funded our company a few years ago. It was for a five-year loan with 12% interest payments. The first two years were interest only, and after that we've made almost a year's worth of principal and interest payments, but we're concerned about current economic conditions. The repayment is draining our cash flow at a time when we need it most. Is there any way to restructure SBA terms to save our business?
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Bill,
SBICs are privately owned and managed investment funds, licensed and regulated by the SBA. SBICs are similar to venture capital , private equity and private debt funds in terms of how they operate and their ultimate objectives. I recommend that you contact the SBIC to rework the terms. Also, before you speak with them, be sure to have a well-layed out business plan that reflects your company's current financial position and debt repayment ability.
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From : erica ryer
Location : walnut creek , ca
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I'm looking for a grand program for women starting a new business. I am a single parent and have 2 products patent pending, which I need financing for. My email address is erica@luxfunding.com or I can be reached at 925-200-4702
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Erica,
The SBA does not provide grants to start or operate a small business. However, we do extend financial assistance to for-profit small businesses to start or operate a small business mainly through the SBA 7(a) Guaranty Loan Program. This is a program through which private sector lenders, such as banks and other lending institutions, make the loans with an SBA guaranty.
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From : Klay Robinson
Location : Grants Pass , Oregon
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Does the government have a program that can help me with my sba loan. I recieved a loan for my construction company to expand into spec building and with the economy in the shape its in Im have a extremly hard time making those payments. Can you help me and my company? Thank you Klay Robinson.
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Any time you are having trouble making payments on your loan, you should contact your lender and try to work out a plan to make sure you are able to stay current on your payments. Do not wait until you default to contact your lender. SBA has encouraged its lenders to work with borrowers who are having trouble in the current economic environment. However, any decision on whether to rework the terms of the loan is ultimately in the lenders discretion.
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From : helen connor
Location : virginia beach , virginia
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I'd like to know about refinancing existing debt for a 27 year old print shop
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Helen,
While SBA loan products can be used for refinancing, one important consideration is whether the benefit you receive on the interest rate and other payment terms is worth the costs of closing the new loan. Be sure carefully review any new loan terms to make sure that you are receiving a lower payment taking into account any origination fees on the new loan or any prepayment penalties on the loan you are refinancing.
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From : Roger Brasel
Location : Keauhou , Hawaii
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Question :
Hello,
We operate a Architectural firm and a Design/Build Company.
We are interested in associating with a mentor in order to position our companies for the challenging economy.
Thank you.
Roger Brasel
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Roger,
To find a list of SBA sponsored networking events in your area I would encourage you to visit your local SBA district office website that has a calendar of events. You can find your district office site by visiting www.sba.gov and clicking on local resources.
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From : AZTEC WFR INC.
Location : Indianapolis , INDIANA
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I have been in business for four years, And we are in need of financial help, is it to late to apply for a loan?
and why does my bank say we don't qualify. Since then my credit has sliped. because I used credits cards to help pay my bills. And did not get them paid back in time. We had two companys that did not pay us are invoices in time that caused my problems.What can i do to get the help i need ?
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Thank you for your question.
Lenders usually base their credit decisions on a variety of factors including your credit score, time in business, experience, projected receipts, etc. If you have questions about your specific circumstances, I would recommend that you talk to one of SBA’s 68 district offices who can refer you to one of SBA’s resource partners who have business development experts who can tell you the steps you can take to repair your credit so you are able to qualify for a loan. You can find a full list of SBA resources online at www.sba.gov
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From : U.S. Small Business Administration
Location : Washington , DC
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Hello, My name is Eric Zarnikow and I currently serve as Associate Administrator for Capital Access at the U.S. Small Business Administration. In this position I am responsible for the Agency's loan programs which are designed to help small business owners and prospective small business owners get capital when they are unable to find financing through traditional means.
I look forward to answering questions about our loan programs.
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