Lots of choice and if you remember the first post I wrote about the SBA micro loan and then one in the free help with your business plan. Most of the SBA that are not in accordance with the article. They hire retired professionals who volunteer their time and services to entrepreneurs starting out in the business world and offer secured loans to a certain percentage. Now where everything becomes fuzzy is how they are suppose to be the new replacement or start a business that can not receive traditional financing from banks (Due credit or lack of experience), but they got rid of the earliest LowDoc loans up businesses applied for and been approved. The main reason for the termination of the loan is because they say they are losing too much money to the program (not profit possible?). Lowdoc loan application fast enough (Low Document) to get money to fund your business, backed by the SBA until a certain percentage to make the bank feel more secure with the transaction. After they terminated their loan package is replaced by SBA Express loans, which was suppose to be a new alternative for small business financing.
The only thing wrong with the picture is that the stringent requirements for loans and actually work for a company that could show cash flow, but it does not have in the department of collateral (Not for risky borrowers). In order to show proof that they expect two years of operating the business and if your business is a start-up … how can you show cash flow and it is most likely your first year in business … maybe even your first month! The article stated that after research how to express most of the loans going out for a business that should already have sufficient cash flow. I know I’m having the same problem when I apply for a loan while I was still in college and do not have a real credit, plus no long. Everywhere I turned them pointed me toward the SBA office for financing … so I went and was rejected, mainly because of the lack of a sustainable business (Plus no credit, but it is what they think are there for!) which shows the path to success. I was less than a few months at the time.