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 Start-Up Loans

STARTING YOUR OWN BUSINESS:

While many commercial banks shun loans for start-up operations, it is the SBA's mission and responsibility to assist such ventures and to help grow the number of successful small businesses in the United States. New business will generate jobs and taxes. This is especially important not only to the local community but to our Country as a whole.

 

Finding the capital you require to start your business is very tough. In today’s market place, finding the financial institution or venture capitalist to loan you the money is what keeps most small business from beginning in the first place. The largest single contributor to assisting new business start ups, is the U.S. Small Business Administration. As in buying an existing business, the applicant must contribute at least 25%-33% of the total business plan. The balance of the capital required can be financed with the loan. You may use the proceeds for just about any business purpose, such as Working Capital, purchase of Machinery, Equipment, Furniture, Fixtures, Opening Inventory or even use the funds to make Leasehold Improvements. The applicant must have a solid credit history and a complete business plan.

 

When It Comes To Start-Ups, Remember, There Are Several Basic Requirements For Qualification:

 

  • The Borrower Should Have A Complete Detailed Business Plan, Including Projections.
  • The Borrower Must Have Good, Clean Credit.
  • The Borrower Must Have Experience In The Line Of Business They Wish To Start.
  • The Borrower's Cash Injection Must Be At Least 25%-33% Of The Total Project Cost.
  • The Borrower Must Provide Some Collateral For The Loan Portion Of The Total project Cost.
 

Funds Can Be Requested For Any Of The Following Categories:

 

  • Purchase A Building To House The Business.
  • Make Building Improvements.
  • Purchase Machinery And Equipment.
  • Purchase Furniture And Fixtures.
  • Purchase Inventory.
  • Working Capital.
 

Repayment Terms:

The SBA repayment terms for a start-up loan will vary according to use of funds. Generally the maximum length of repayment of the loan is 7-10 years on most categories, with the exception of purchasing Real Estate which carries a 25 year repayment term.

 
 

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