Will winning small business loans get easier?

From Dave – Grand Rapids, MI

Wow! Avoid Sam's rant below, although he is probably touching the one saving grace for our borrower's problems. The borrower is wondering if she lending standards will change any time soon. The short answer is no. But that's qualified with all kinds of 'but's'. Lending standards are different at every single lending institution you have in your community. They probably aren't substantially different, but may be different enough to allow you to get the money you want now, given your circumstances. SBA loans may be your best bet, as SBA has no collateral coverage requirements (they regularly guaranty loans with little to no collateral) and no personal credit score requirements, per se. That personal credit score issue is less important with a going concern and if you're starting a business. A start-up requires a pretty good credit score as there's little else to look at regarding how you will do in the future with your new business. SBA loans often allow the lending institution to bend their internal lending policies enough to meet the needs of borrowers they otherwise could not meet. Hope that helps!

From Sam Buran, Florida

SBA loan are a blissing. How can anyone be against that. Lending money to small business that cannot find loans from other lenders is the way to go. Conventional lenders will never give out a loan on the Going Concern, only on real property, and the LTV ratio will be much lower than the SBA's. What is the government there for??? To help his citizens or to keep sending moneys to other countries and to subsidize wars?
Senators, representatives and any other governmental official against SBA lending, should not be voted again and fired, as they are not for the people. So what if there are few defaults/losses, maybe, in order to avoid that scenario, why not put some caps on the ADJUSTABLE RATES, so the investors that buy these type loans, will have a better chance to be paid. But no, let's keep the ADJUSTABLE SBA rate so it may go up at 12-13-14% or more, lets make the investors, that buy these loans, happy, and let's exploit the SBA borrwers. Regulate and control the SBA rate of interest, that's all you need to do. And yes, keep track on the loan performance……..ho…I thought that the SBA lenders already do that. Yes, they, as any other lender, require from the borrowers, each and every year, tax returns and quarterly financials, to monitor the performance of the business. So, what else do we need???? The borrowers are also charged the SBA guarranty fee, almost 3% or more, of the loan amount, in order to build up the funds that may repay for any loss caused by loans in default.
Ultimately, it is the SBA lender that needs to better control these loans and to provide the SBA with information on such loans, without putting anymore burden on the SBA borrowers.
Some CIVIL SERVANTS…make the SBA lending to be like a CHARITY organizzation. It is a business which involves lenders, the government and borrowers. Where, at the end of the day, the borrowers are the real heros that pay a high rate, create jobs, circulate and spend money and so forth.

So CIVIL SERVANTS, stick to your job as SERVANT and let us do the business.

As, so far, you proved over again that you are not able to manage the business of our COUNTRY.

From Marshall Lebovits, Redondo Beach, CA www.funding911.com

There are asset based loans for small businesses which focus more on purchase orders, accounts receivables, inventory and equipment. As a general rule of thumb, these loans are more expensive than loans where the business owners have a strong credit profile. Please feel free to visit my blog at http://www.funding911.com to learn about how these financing solutions can help a company fuel its growth.