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Credit card debt got you down? If only you could get an SBA-backed loan . . .
By Julie Jonahan • Jul 1, 2002
Opinions expressed by Entrepreneur contributors are their own.
Converting business-related credit card debt to a moreaffordable SBA loan sounds like a good deal for your business. Italso sounds good to National Small Business United (NSBU), aWashington, DC, advocacy group pushing for new rules allowing justthat.
Under current rules, an SBA 7(a) loan can be used to refinancebusiness-related credit card debt only when it benefits thebusiness and if credit card debt is not a result of bad fiscalmanagement. Satisfying a banker of such conditions can beimpossible. "Most banks won't mess with this at all,"says Alice Magos, an analyst with CCH Inc., a Deerfield, Illinois,provider of business law and finance information and software.
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