Answers
I am purchasing a small business that has been in existence for 1 and a half years. I am using an SBA loan for the purchase.
Referring to the future, how do they determine what my business line of credit will be? My companies net profits are 160k. (After debt payment it is around 110k). Formulas are welcome!
they need to see tax returns, bank statements, and they will need to find out what you will use need the money for. they might even ask for a business plan.
If your reading this, then you probably are considering... Buying the building you currently rent. Refinancing your current location. Expanding to ...
I have been running a small business for nearly 20 years and my current bank has decided that they don't want me as a customer. My current relationship includes the following products:
-Business Checking
-Merchant Services
-Business Credit Card
-Business Credit Line
-SBA Loan
-Home Mortgage
-2 Personal Checking Accounts
-2 Personal Savings Accounts
Ideally the bank I choose would be able to handle all of this.
Wells Fargo, B of A or USAA
How long until My business can get an sba loan or a basic business line of credit based on its own financials and credit?
It really depends on your financial situation. What you can do is speak with a loan officer at a bank. Banks process SBA loans, so they can look at your financials and tell you exactly where you need to be to get one...
Why would anyone choose an SBA loan when they tie up your collateral and you could use that same collateral for a home equity line of credit?
With home equity line of credit, you get to deduct interest from your income tax. Also you get spread the HELOC payment over longer period of time.
I need to get a loan to stay in business. I've been in business for 2 1/2 years and I need to hire additional staff and inject some marketing $$s into the business to accelerate growth and profitability. I was told however, that because I am not new or a start-up, I only qualify for the SBA 7(A) express loan or line of credit which caps out at 100K. This confuses me because when I started my business I was told that I could not qualify because I had to be in business for 2 years!!?? Imagine my frustration. Pls help.
Go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor.
SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).
SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.
Banks Vow to Do Better at Small Business Lending in 2010 | Small ...
A Treasury report released on December 15, 2009 showed that major banks decreased their business loan balances by $1 billion in October, CNNMoney.com says.
Starting in April, the 22 banks that received TARP funds as part of the federal government’s bank bailout had to start filing monthly reports with the Treasury Department. Since then, total small-business lending by the banks declined by 11.6 percent.
The report came out a day after President Obama met with leaders of some of the nation’s biggest banks to urge them to increase lending. President Obama had another banker gathering on December...
News
Stimulus Relief Extended for SBA LoansWall Street Journal - Dec 22, 2009
eCreditDaily.comMs. Smith depended on the line when clients failed to pay within 90 days. The bank expanded the line of credit year after year, leading her to believe that Banks plan to boost small business lendingBanking on Job Growthall 111 news articles »
Los Angeles Times - Dec 29, 2009
At the same time, creating small-business jobs has gotten harder as lower sales crimp cash flow at many firms and tightened credit stymies start-ups and and more »
Buffalo News - Dec 28, 2009
Through a credit line known as TALF, the Treasury Department and the Federal Reserve financed more than $1 billion in purchases of investment securities and more »Wall Street Journal - Dec 10, 2009
ABC News"I'm in the middle of getting a line of credit approved," she says. But because she's waiting on securing an SBA-backed loan, she says she's hopeful that Obama Focuses on Small Businesses to Spur Job GrowthLocal business owners expect little benefit from proposed small business planMorning Must Reads -- TARP won't cover second Obama stimulus - -all 3,501 news articles »
New York Times - Dec 04, 2009
Zoar Filwilder recounted how Chase Bank canceled the line of credit for his company, Mavid Construction of Scottsdale, Ariz., despite its good standing and and more »Scripps News - Dec 24, 2009
It's like taking out a $20000 line of credit to do a home renovation. The renovation only costs $10000, so you use $10000 to take a vacation. and more »Trading Markets (press release) - Dec 16, 2009
This rate was even worse for firms that tried to obtain a new line of credit, with only three in ten succeeding in their effort. While the Small Business and more »