Only game in town for small business loans and Microloans is the SBA Loan program

Jan. 15, 2010 - PRLog -- The SBA got a lift from the defense budget on Dec 21st. $125 million will be give to the SBA to guarantee the 7a up to 90% and fund more 504 and Microloans. The defense budget was $636 billion in total. The funds for the SBA are projected to last until the end of Feb. Tony Wilkinson CEO and President of National Associations of Government Guarantee Lenders said that the SBA has to step up and fill the void left by commercial banks lack of lending. He went on to say that it will be 2011 before the conventional small business lending will be back to normal.

The catch is that the loans will not be funded through the SBA, just guaranteed. A small business owner will still have to go through the loan process at a bank or find a lender online.  

The SBA has loans available for underwriting for just about every business type. The bank must approve the loan and underwrite it according to the SBA guidelines. The final decision on loan approvals will rest on the shoulders of the bank and not the SBA. Even if a small business qualifies for the SBA loan guarantee the commercial bank will still need to put their OK. on the loan.

In order to receive an SBA loan guarantee a business must have the proper paperwork. A few items needed are cash flow statement, business plan, and  3 years of profit and loss  projections, just to name a few. Online is a good place to start a search for learning the documentation needed and about the different loans the SBA has to offer. http://www.sbaloans-123.com/ In the recent past many banks would fund loans with the borrower having a good credit score and some assets. This is not going to happen again for a long time do to the public humiliation that occurred in the residential mortgage industry. Lack of good underwriting caused the melt down and the commercial bankers will not be willing to take chances without the SBA guarantee. The best way to approach an SBA loan is to understand the many different types of loans and the associated qualifications like the SBA Microloan. http://www.sbaloans-123.com/sba-microloan
 
Congress is working on writing a bill that would fund the SBA until the end of the year. This should help with getting the economy growing again as small business is referred to as the heart of  the American economy. Without small business growth the economy will never turn the corner.
http://www.sbaloans-123.com/sba-loans/sba-loans-only-game...