Category: Business Credit

Getting an SBA Loan Just Got Harder

Getting an SBA Loan Just Got Harder

A recent update to the SBA’s  Standard Operating Procedure (SOP) for lenders participating in the Small Business Administration (SBA) loan guarantee program could make getting an SBA-guaranteed small business loan a little more challenging if you and your small business have less than perfect credit. According to the update, this SOP will go into effect on Oct. 1, 2020. The pertinent part of the update regarding credit qualification criteria is as follows: All 7(a) Small Loan applications will begin with… Read More
Line of Credit vs. Loan: What’s the Difference?

Line of Credit vs. Loan: What’s the Difference?

This post was reviewed and updated on August 7, 2020 Small business owners often turn to loans and lines of credit to finance different types of business operations. Both financial options can give you access to capital to run and grow your business, but their terms make them useful in different scenarios. There are also personal lines of credit and loan options available if you’re looking for something to help with a personal expense. The primary difference between a line… Read More
What to Know About Debt Financing

What to Know About Debt Financing

Building a business requires capital, and unless you have enough cash in savings to bootstrap your business, you’ll need some form of financing to grow your company and achieve your goals. Debt financing and equity financing are the two primary forms of obtaining capital. If you’re considering debt financing, it’s important to know what it is, how it works, and the different financing options available to you as a borrower. What is Debt Financing? In a traditional sense, debt financing… Read More
What’s the Best Type of Small Business Funding For Your Business?

What’s the Best Type of Small Business Funding For Your Business?

This article was reviewed and updated on July 21, 2020. Opportunities for growth arise, equipment breaks, inventory goes on sale, business slows, and operational expenses grow. Sometimes, all of those things happen at once in a small business. Regardless of what circumstance matches your experience, chances are you’ll need working capital to take care of it. While the ideal solution may be to tap into reserve funds to manage costs, that’s not always possible. For many small businesses, money is… Read More
Need a Business Loan? Data Drives Loan Decisions

Need a Business Loan? Data Drives Loan Decisions

Several years ago I was talking with a local community banker that did a lot of SBA-guaranteed loans every year. As we were talking about the challenges some of the smallest small business owners face when looking for a loan, she casually mentioned that her bank’s SBA loan application was 40 pages long. I understand that data drives loan decisions and that bankers (as well as the SBA) want to make sure they have all the information they need to… Read More
What is Commercial Loan/Mortgage Forbearance?

What is Commercial Loan/Mortgage Forbearance?

Many small businesses are suffering financial hardship right now because of COVID-19 and shelter-in-place orders that have shuttered many for weeks if not months. Those that own their buildings or that are landlords to other businesses may find the worry of foreclosure looming large as cash flow grinds to a halt. Paying bills, including that monthly mortgage payment if you have a commercial mortgage, may be more difficult than it’s ever been. With all the other economic stimulus packages we’re… Read More