Block on Trump's Asylum Ban Upheld by Supreme Court
The Arizona chapter of the Small Business Administration released figures showing continued decline in SBA backed lending to the state's small businesses. Other places, such as Florida, report a similar trend. This is despite recent government stimulus to bolster SBA backed loans. Lenders blame the government strings attached to the program. Small businesses blame stingy lenders. No matter who's to blame, there are ways to improve the chances of your business getting an SBA backed loan.
As the Phoenix Business Journal reports, for the fiscal quarter that ended March 31, 2009, SBA backed loans were down 67% in number and 65% in amount from the previous year. The Orlando Sentinel reported on recent attempts to open dialogue between small businesses and lenders in Northern Florida, where the rate of lending has plummeted.
Lenders blame the conditions attached by the federal government (such as capped interest rates) while would-be borrowers accuse lenders with money of cherry-picking only the most risk-free applicants.
So, what are the criteria for getting an SBA backed loan? According to the SBA, the primary consideration in obtaining an SBA backed loan is repayment ability with future cash flow from the business. Other important factors include management capability, good character, collateral and owner investment in the business.
With these factors in mind, here are 5 tips when applying for SBA backed loans: