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Loan Packaging


  • Submitted on 01 October 2014

    Created on October 1, 2014
     

    Business Loan Application Form

    Veterans Advantage program also extended, expanded to loans up to $5 million

    Good news for entrepreneurs seeking SBA financing to purchase or grow a small business. The SBA will continue its provision to eliminate the upfront fee paid by all borrowers for the guaranteed portion of 7(a) loans of $150,000 or less, and will expand the no upfront-fee program for veteran-owned small businesses, through Sept. 30, 2015. 

    Before this change, borrowers using the SBA guarantee through participating lenders would pay up to two percent of the guaranteed portion on these loans, which would cost a small business owner up to $2,700 in fees.

    However, if two or more SBA guaranteed loans are approved within 90 days of each other, the guaranty fee is determined based on the aggregate amount of the loans. Thus, if the total amount of multiple loans approved within 90 days is greater than $150,000, the normal fees will apply. Lenders are not permitted to split loans for the purpose of avoiding fees for their small business borrowers.

    Participating lenders also will continue to see a break; the SBA will eliminate the servicing fee paid by them each month on loans $150,000 or less. The servicing fee paid by lenders each month on 7(a) loans greater than $150,000 will drop to 0.519 percent on the guaranteed portion of the outstanding balance beginning Oct. 1, 2014.

  • Submitted on 27 January 2014

    Created on January 27, 2014
     

    Military with US Flag in BackgroundSmall businesses that suffered economic losses when the owner or a key employee was called up to active duty are eligible to apply for a low interest loan of up to $2 million from the U.S. Small Business Administration.

    Small businesses can apply for a Military Reservist Economic Injury Disaster Loan (MREIDL) any time from the date of notice of expected call-up and ending one year after the date of discharge or release. The program was created to enable eligible small businesses to pay operating expenses it could have covered if the owner or key employee hadn’t been called to active duty.

    “The absence of just one employee whose expertise is critical to the success of the company can pose significant challenges for a small business,” said SBA Acting Administrator Jeanne Hulit.

    “These Military Reservist Economic Injury Disaster Loans provide funds that will help these small businesses cover operating expenses.  This way our brave men and women in uniform don’t have to choose between serving their country and growing their businesses.”

    The MREIDL is a direct working capital loan, managed by SBA’s Office of Disaster Assistance.  The interest rate on these working capital loans is 4 percent, with terms up to a maximum of 30 years.   In general, no collateral is required to secure an MREIDL of $50,000 or less.  The loan cannot be used to replace lost income or profits, refinance long-term debt or to expand the business.

  • Submitted on 20 June 2012

    Credit AgreementState and local economic-development agencies – and numerous nonprofit organizations – provide low-interest loans to small business owners who may not qualify for traditional commercial loans.

    When it comes to applying for these loans, the good news is that most of these other lenders require the same kinds of information. Of course, each loan program has specific forms you need to fill out. But for the most part, you’ll need to submit the same types of documentation. So it’s a good idea to gather what you’ll need before you even start the application process.

    Here are the typical items required for any small business loan application:

    Loan Application Form

    Forms vary by program and lending institution, but they all ask for the same information. You should be prepared to answer the following questions. It’s a good idea to have this information prepared before you fill out the application:

  • Submitted on 20 June 2012

    ROIBefore you seek financial assistance, you should thoroughly assess your current financial situation. Ask yourself the following questions to determine your business' financing needs:

    Do you need more capital or can you manage the existing cash flow?

    If you are having trouble paying your obligations on time, you may need an infusion of working capital.

    What is the nature of your need?

    Do you need money to start or expand your business or as a cushion against risk?

    How urgent is your need?

    Whenever possible, it's better to anticipate your needs rather than looking for money under pressure. It is harder to gain approval for a loan when your company is already in trouble, so plan ahead and secure financing well in advance of a crisis.

    How great are your risks?

    All businesses carry risk, and the degree of risk will affect both the cost of your loan and available financing alternatives.

    In what state of development is your business?

    Needs are generally more critical during transitional stages - start-up and expansion being two of the most urgent and costly.

  • Submitted on 01 May 2012

    Institutions participating in the Small Business Lending Fund significantly increased small business lending in the 4th quarter of 2011 by $1.3 billion over the 3rd quarter—for a total of $4.8 billion over their baseline. A substantial majority of SBLF participants have now increased their small business lending by 10% or more.

  • Submitted on 14 October 2011

    SBA Announces Record Loan Approval Volume in FY 2011 - Supporting Over $30 billion in Small Business Lending

    Record $12 billion 1st Quarter Followed By Return to Pre-Recession Levels

    Spurred in part by unprecedented loan volume in the year’s first quarter, small business loans backed by the U.S. Small Business Administration in FY2011 reached the highest mark in the agency’s history, supporting over $30 billion, continuing the rebound begun in 2009 and returning to healthy pre-recession levels in the final three quarters of the year.

  • Submitted on 15 September 2011

    Small businesses borrow for four principal reasons: starting a business, purchasing inventory, expanding, and strengthening the firm’s financials.

     “Small business owners across the country tell me that access to capital remains one of their central concerns,” said Chief Counsel for Advocacy Winslow Sargeant. “The research we are releasing today will add to the understanding of small business financing needs and sources, and will inform policymakers seeking to strengthen the productive small business sector.”

    The Finance FAQ is replete with data about where small businesses obtain their financing, including 15 graphs showing types of startup and expansion financing, as well as trends in bank lending, interest rates, venture capital, initial public offerings, SBIC funding, and SBA loans.
     

  • Submitted on 15 September 2011

    One hundred nonprofit organizations from 44 states and the District of Columbia received grants under the Program for Investment in Microentrepreneurs Act (PRIME), the U. S. Small Business Administration announced today. 

    Grants will be used to provide business-based training and technical assistance to low-income and very low-income entrepreneurs to help them start, operate, or grow a small business.  Grants will also be used to better equip community-based nonprofit organizations to provide training. 

  • Submitted on 08 August 2011

    Startups, newly established and growing small businesses now have a new source of financing backed by the U.S. Small Business Administration as 20 community organizations have been funded by SBA to start making loans up to $200,000 to qualifying small businesses.

    Authorized under the Small Business Jobs Act of 2010, the new Intermediary Lending Pilot Program will provide direct loans up to $1 million to 20 community organizations or intermediaries in fiscal year 2011, which in turn will use those funds to help finance small businesses, mostly in underserved markets.

  • Submitted on 02 May 2011

    The U.S. Small Business Administration has approved an initial group of six community-based, mission-focused lenders to start accepting and processing Community Advantage loan applications from small business borrowers immediately, the agency announced today.

Did you know...

The percentage of clients with annual revenues in excess of $500,000 increased over the last five fiscal years.
Graph for MBDA Client Portfolio made up by SGI Clients

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