Five Ways To Obtain Small Business Start Up Assistance
1. Small Business Association (SBA) – The SBA offers a variety of loan programs. Note that SBA loans usually involve the husband and wife both signing the note (not the business owner solely), good credit rating and collateral.While these loans are not among the easiest to obtain, it is an option for those willing to invest the time and effort to apply. Click on the link above to review the loan opportunities that are currently available now through the SBA at the official website. SBA-guaranteed loans are attractive in that as much as 80 percent of the principal might be guaranteed by the SBA. Read more about the various SBA loans.
2. Community Development Financial Institutions – This link will take you to official web site of the Coalition of Community Development Financial Institutions. The CDFIs offer a variety of loan products and services. CDFIs “serve economically distressed communities by providing credit, capital and financial services that are often unavailable from mainstream financial institutions. CDFIs have loaned and invested over billions in our nation’s most distressed communities…."
3. Equipment Leasing – Among the types of leasing programs are municipal lease, step-up lease, sale lease-back, 60 or 90-day deferred loans, capital lease, operating lease, master lease and skip lease
4. Asset-based Loans – Use your assets (inventory, accounts receivable) as collateral to get these loans from banks. Borrowers, who may be perceived as more of a credit risk by the Bank for a traditional bank loan, will be viewed more favorably when they use an asset to back up the transaction and offset any potential losses.
5. Bank-term loans – These loans offer a fixed amount and repayment term (usually one to seven years) for purchasing real estate and business start up necessities.