Small Business Loan

Was wondering if anyone out there has ever applied for a Small Business Loan???  If so what advice can  you give???

a small business "loan" is actually a loan "quarentee"...lots of paper work, and requirents, but worth the wiait......id advise seeking a group called SCORE , which is an organization  of retired businessmen whom have a great program, and all the updates im sure for whats ahead in monies for businesses in theses times. im sure theres one in your area....jbarl

Good luck, money is in short supply right now.  I suggest you have a VERY good business plan and be prepared for a lot of paperwork.

SBA loans are guaranteed by the government at different levels (50%-85%).  For your bank in the worse case scenario after all pledged assets are sold if there is still a left over balance on the note, the bank applies for the guaranteed portion to be paid by the government.  The above posts are correct that there is a lot of paperwork.  In today's economy the 3 C's of lending rule...character, collateral, cash flow.  SBA guarantee is way down the list.

If the business is Ag related probably need a FSA guarantee....contact your local FSA office.

My advice is make sure you use a local bank, they will be more willing to work with you if things go south.

Now this was on a home mortgage but i heard about a guy who had put half down on his house, lost his job can still make the payments but it is getting tough, tried to talk to the bank (Large national back getting gov money), they told him he had to start missing payments and start foreclosure before they would even talk to him about help.  The bank has nothing to lose if this guy goes under.  Anyway I could never see my local banker saying that to me. 


Just bank with people you know and small local banks.

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