Small Business Loans | Unsecured Credit

Dedicated Business Loan Specialists

Small Business Administration (SBA) Loans

GOVERNMENT BACKED FINANCING FOR YOUR BUSINESS

BUSINESS CAPITAL GROUP Busts the Myths; Providing the Answers You Need to Know.

The Small Business Administration offers a variety of loan guarantee programs and are an excellent source of funding for your business. These programs can help your business, which may not otherwise qualify for a loan, getting approved on reasonable terms. The SBA does not actually give you the money; a commercial bank will loan you the money. The SBA guarantees the loan, paying the bank back if you were for some reason to default on the loan.

This is where BUSINESS CAPITAL GROUP, LLC (BCG) steps in, stringing the connection between your business loan needs and the lender, while ensuring that SBA loan requirements are met.

With SBA loans there is no limit to the amount of capital you can request. There is pretty good flexibility on how long you can take to pay the loan back. Most SBA loans allow up to a maximum of 25 years for loan maturity.

Before you can completely qualify for SBA loans, BCG ensures that these vital criteria are handled and in place before the loan application is set in motion:

You must have some level of financial stake in the business coincident with any loan requests. The SBA wants to see that you are willing to invest some of your own money into the business. This establishes confidence in the lender and the SBA. They know that you will work harder if your money is at stake too.
You must have a strong, comprehensive business plan. Your business plan should be extremely detailed and tell exactly how you plan to make money and how you plan to spend the money you are requesting. Don�t have one, or are you unsure on how to put together a comprehensive business plan? No worries, BCG can rapidly resolve this with business plans that work and inspire confidence.
You need to posses above-average personal credit scores. If personally you pay all of your bills on time, then chances are that you will be diligent as well about paying back your business loan. That is what the SBA wants to see, as of course, they expect to have the loan fully repaid. There is considerable importance placed on this point, so do not brush off this step thing that it is unimportant. It would be wise to check your personal credit scores before you apply so you know where you stand when you go in to speak with the lender. If your personal FICO score is below standard requirements, then BCG credit experts can work with you on a personalized plan on how to raise your FICO score to an approvable level (usually 740 or above).

Last year, more than $50 million in SBA loans were loaned out per day to U.S. small businesses just like yours. BCG can show you how to tap into this vast reservoir of business cash flow, so you can get going right away on converting your business plans into business profits.

What Type of SBA Loan Programs Exist?

7(a) Loan Program

The 7(a) is the SBA's most popular loan program. As a small business owner, you can get up to $750,000, backed by a partial guarantee from the SBA. Note that the SBA is not lending you any money directly. What they are doing is making it less risky for a local lender to provide you with financing. The SBA guarantees the loan, thus reducing any risk to the lending institution.

The 7(a) loan is typically used for working capital, asset purchases and leasehold improvements. All the owners of a business who hold an ownership stake of 20 percent or more are required to personally guarantee the loan.

Once BCG and the lender concur that the 7(a) Loan Program is what you need, you'll probably start hearing the names of the different 7(a) programs. For example if you're borrowing less than $150,000, you may be headed toward the Lowdoc program, which was created in 1993 to reduce burdensome paperwork. The SBA responds to Lowdoc applications within 36 hours.

The SBA Express is a program for lenders with a good SBA-lending track record. It's aimed at getting money--in this case, as much as $250,000--quickly into the hands of entrepreneurs. Based on the success of the SBA Express program, the SBA initiated CommunityExpress, specifically designed to improve access to capital for low and moderate-income entrepreneurs and to provide both pre- and post-loan technical assistance.

Eligibility: The eligibility criteria for the 7(a) program are the broadest of all the SBA loan programs, but they're still quite restrictive for startups and businesses related to the financial services industry.