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Getting a Business Loan During the Downturn
The Mobile Area Chamber of Commerce is committed to the development
and growth of small business in this region. We realize that many
small businesses are facing a variety of challenges.
The following announcement was provided by the Small Business Administration office. If you would like more detailed information, or would be interested in scheduling an appointment with an SBA official who can discuss the Recovery Package and how it will impact small businesses, please call SBA Sr. Area Manager Brent McMahan at 251-544-7401.
Check back to this page in the near future as we’ll be adding information on lending opportunities with Chamber member bank and credit union lending summarized here in the days to come. Meanwhile, please be aware of the following SBA development:
Small Business Can Apply for ARC Loans Beginning June 15, 2009
Statement from SBA Acting Administrator on Recovery Efforts Announced by President Obama
Effective March 16, 2009, the SBA will:
www.sba.gov/localresources/district/al/financing/index.html
List of banking members:
Non-bank lending members:
Investment members:
No Free Lunch!
In spite of what people see on television or hear from friends, the fact is there's no government agency or private foundation handing out free money to start small businesses, regardless of the money-seeker's gender, ethnicity, or economic status. Everyday our office gets calls from people convinced there's 'free money' out there to fund business start-ups. The fact is that most grants are awarded to non-profit organizations. A few go to businesses that do research and development geared toward crucial government projects. These grants are extremely specific in nature and often quite technical.
For example, there is a tiny grain of truth in those late-night TV infomercials. There's a program called 'Small Business Innovative Research' which does award grants of up to $100,000 to research ideas which seem promising, and then to develop products if the research is successful. However, most of these grants are for projects such as how to put a satellite into orbit and then repair it. These funds are not available to people who are interested in opening restaurants, hair salons, and other more common small businesses. If the government provided free money to everyone who wants to start a small business, it wouldn't last long. And can you imagine the outcry from taxpayers if their money was funding these risky ventures?
The fact is that most new businesses are started with personal savings, loans from friends or relatives, or small commercial or personal loans. I think one reason this 'free money' myth is so prevalent is that people are looking for an alternative to the work and detail required to get a conventional loan. The idea of writing a business plan and approaching a lender can be intimidating. But think about it-aren't you more likely to succeed if you do the groundwork and research required? There's a reason procedures are in place for small business loans. One of the most important factors in obtaining a loan for a new business is the borrower's personal credit history. Lenders don't care if you're male, female, black, white, Asian, Hispanic, young or old. The bottom line is: Can you pay the money back? There are local resources that provide training and counseling for individuals who want to start their own businesses
The following announcement was provided by the Small Business Administration office. If you would like more detailed information, or would be interested in scheduling an appointment with an SBA official who can discuss the Recovery Package and how it will impact small businesses, please call SBA Sr. Area Manager Brent McMahan at 251-544-7401.
Check back to this page in the near future as we’ll be adding information on lending opportunities with Chamber member bank and credit union lending summarized here in the days to come. Meanwhile, please be aware of the following SBA development:
Small Business Can Apply for ARC Loans Beginning June 15, 2009
Statement from SBA Acting Administrator on Recovery Efforts Announced by President Obama
Effective March 16, 2009, the SBA will:
- Temporarily raise guarantees to up to 90 percent on SBA's 7(a) loan program, through calendar year 2009, or until the funds are exhausted. This increase in guarantee levels will help provide banks with the greater confidence they need to extend credit during the current recession, will mean more capital available to small business owners around the country.
- Temporarily eliminate fees for borrowers on SBA 7(a) loans and for both borrowers and lenders on 504 Certified Development Company loans, through calendar year 2009, or until the funds are exhausted. This will mean more capital available to small businesses at a lower cost. The fee elimination is retroactive to February 17, the day the Recovery Act was signed. SBA is developing a mechanism for refunding fees paid on loans since then. Additionally, the president announced that the Treasury Department will commit up to $15 billion to help unlock the frozen credit markets by purchasing small business loan securities currently frozen on the secondary market.
www.sba.gov/localresources/district/al/financing/index.html
List of banking members:
Non-bank lending members:
Investment members:
No Free Lunch!
In spite of what people see on television or hear from friends, the fact is there's no government agency or private foundation handing out free money to start small businesses, regardless of the money-seeker's gender, ethnicity, or economic status. Everyday our office gets calls from people convinced there's 'free money' out there to fund business start-ups. The fact is that most grants are awarded to non-profit organizations. A few go to businesses that do research and development geared toward crucial government projects. These grants are extremely specific in nature and often quite technical.
For example, there is a tiny grain of truth in those late-night TV infomercials. There's a program called 'Small Business Innovative Research' which does award grants of up to $100,000 to research ideas which seem promising, and then to develop products if the research is successful. However, most of these grants are for projects such as how to put a satellite into orbit and then repair it. These funds are not available to people who are interested in opening restaurants, hair salons, and other more common small businesses. If the government provided free money to everyone who wants to start a small business, it wouldn't last long. And can you imagine the outcry from taxpayers if their money was funding these risky ventures?
The fact is that most new businesses are started with personal savings, loans from friends or relatives, or small commercial or personal loans. I think one reason this 'free money' myth is so prevalent is that people are looking for an alternative to the work and detail required to get a conventional loan. The idea of writing a business plan and approaching a lender can be intimidating. But think about it-aren't you more likely to succeed if you do the groundwork and research required? There's a reason procedures are in place for small business loans. One of the most important factors in obtaining a loan for a new business is the borrower's personal credit history. Lenders don't care if you're male, female, black, white, Asian, Hispanic, young or old. The bottom line is: Can you pay the money back? There are local resources that provide training and counseling for individuals who want to start their own businesses
