Get A Loan--Fast
Stop chuckling. It can happen with certain SBA loans.
By Paul DeCeglie
Need a quick loan? Well, is 36 hours quick enough? Believe it or
not, you can get an SBA- backed loan of up to $150,000 to help
start or expand your business--and the agency promises a rapid
response. While the SBA's 7(a) Loan Guaranty Program, which provides
financing up to $2 million, is the most well-known, other agency
programs may be more user-friendly for start-ups, which generally
need substantially less money. SBAExpress, for instance, one
of the SBA's newest loan programs, allows participating lenders
to approve loans of up to $150,000 within 36 hours of receiving a
completed application. And while the SBA requires guaranteed loans to be fully secured,
lenders may approve unsecured lines of credit of up to $25,000 with
SBAExpress. Featuring maturities of five to 10 years (up to
25 years for fixed-asset loans), SBAExpress loans bear a
negotiable interest rate (fixed or variable) ranging from 2.25 to
2.75 percent over prime. Content Continues Below
The SBALowDoc program is also tailored to meet the needs
of start-ups. Like SBAExpress, SBALowDoc features a
maximum loan amount of $150,000 and calls for a response from the
agency within 36 hours. Negotiable interest rates (fixed or
variable) are subject to SBA limitations (the same 2.25 to 2.75
percent over prime), and maturities range from five to 10 years (up
to 25 years for fixed assets). While loans must be secured by
available business and personal assets, applications are not
declined when inadequate collateral is the only unfavorable factor.
Personal guarantees of the principals are required. Need less money? Look into the SBA's MicroLoan Program,
designed to increase the availability of very small loans to
prospective small-business borrowers. Under this program, the SBA
makes funds available to nonprofit intermediaries, who, in turn,
make loans to eligible borrowers in amounts ranging from less than
$100 to a maximum of $25,000. Loans, which average $10,000, are
made at competitive interest rates and run a maximum of six years.
Although collateral policies for the MicroLoan Program are up to
individual intermediary lenders, business owners must pledge
personal guarantees and any assets bought with the MicroLoan under
the SBA's general requirements for the 7(a) program. For a complete description of all SBA loan programs, go to
http://www.sba.gov/financing/indexloans.html or call
(800) 8-ASK-SBA.
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