All posts in Sba loans

SBA Loans for Startups, Small Business SBA Grant in Texas, Houston

Money Man 4 Business, SBA loans (government loan program for small business) provider in Houston, apply with proper application if you are looking for SBA loans, sba 7a loan and startups

The agency small business administration (SBA) is an autonomous administration of the US government built to bolster the small businesses and economy by providing them SBA startup loans, which would help the economy grow. Other than that biggest function of SBA is to provide counseling aid to the entrepreneur to grow their startup business.

SBA loans are business loans guaranteed by the Small Business Administration. Through the multiple SBA funding, the govt. agency renders SBA loan guaranteeing up to 80% of the loan amount through SBA approved lenders. The three main programs let the borrower to purpose that includes buying real estate, refinancing debts, buying equipment or inventory, working capital through the guaranteed loans.

SBA loans are small business loans guaranteed by the SBA and issued by participating lenders. This guarantees up to 80% of loans as per the agency lending statistics.

In case you are searching to open a new location, refinance an existing loan, or hire employees, SBA loans serves to be a good option. The SBA loan rates and terms usually are more manageable for borrowers than other kind of financing.

SBA also offers substantial educational information that focuses on providing assistance to small businesses during the pandemic by giving them knowledge about SBA loan coronavirus so that the small businesses can sustain themselves during such tiring times.

If you are seeking how to fund the expansion of your business, you should opt for SBA loan. Even if this is not for every kind of business owners, but these are viable option for those who can’t obtain other financing methods to grow their business.

Most importantly, when a qualifying business applies for this loan, he is applying for a commercial loanthat is structured as per the SBA needs with a guaranty. Now, the small business owners and borrowers who have access to other financing with reasonable terms are not eligible for these loans. But, this is good when the owner didn’t actually qualify for traditional bank loan and has a particular use of funds to help grow his business.

Who Qualifies for an SBA Loan?

Securing a small business administration loan is not an easy task. But when it comes to applying for it, small or newer ones can qualify for it. The most crucial element will be the credit score. SBA loans are for business owners with strong borrowing history.

So, be prepared as these loans need lot documentation, attention, energy and time.

One shouldn’t believe any lender who promises to give SBA loan today. It is definitely not a loan that you can apply and receive within few days. These loans are fit for growing your business and refinancing other debt at the lowest available rate.

You can find it hard to qualify for SBA loan in case your company has a limited track record, or mostly when you have poor credit. Actually, the small business administration and your lender stick their neck out on the belief that you are a reliable borrower.

How Do You Apply for SBA Loans?

There are many local and large banks that offer SBA loan. The bank lenders will have extensive loan application, seeing at the financial detail of your business. At the min, the loan application at a traditional bank will take a couple of weeks to process.

For a quicker and easier process, you can apply online to us and connect to top SBA lenders. Some of the essential documents you’ll require here are:

  • Business debt schedule
  • Business plan
  • Personal tax returns
  • Profit and loss statement
  • Balance sheet
  • Bank statements
  • Voided business check
  • Driver’s license

The perfect place to start is the SBA site that include loan application checklist. You can use the below info to gather the documents, including the business records and tax returns.

Here are certain documents you will require prior to applying.

  • Loan application history
  • Business lease
  • Business license or certificate
  • Business tax returns
  • Personal income tax returns
  • Personal financial statement
  • Statement of personal history
  • SBA’s borrower info form

You can ask the SBA district officer for the name of the approved lenders. The agency also did setup the SBA tools to match the potential borrowers with lenders. Banks follow SBA guidelines but use their own under writing criterion to determine loan applications.

Types of SBA Lenders

The intermittent participant lenders are the bank and non-bank lending institutions that deal in SBA loans texas on a sporadic basis. An intermittent lender will send all the paperwork to SBA regarding any particular loan security situation. The agency will do an independent analysis of the plan and let the lender know whether it will furnish the required security to the lender against the loan.

Then there are certified lenders who participate along with SBA on a regular basis, and they have staff that is prepared and certified by the SBA. In this lender will review the paperwork and decide whether the loan seeker is eligible, but the final world will be of the SBA.

Preferred lenders are also SBA-certified lenders who are at the top of the list based on their performance. For SBA loans for startups, the agency designates their best and reliable lending partners and finalizes loans.

How to Choose the Right SBA Loan Program

There are lot many types of SBA loans out there, with 3 programs being the most popular ones. These are:

  • The SBA 7(a) loan program
  • SBA micro loan program
  • The CDC/504 loan program

How do you know which one is right for you?

The SBA loan program will let you to apply that depend on goal of your business, on age, and on the size.

The most popular program is the SBA 7(a) loan that work best for most business with general financial requirements such as renovating a location, refinancing old debt, expanding working capital. Here are the details of an SBA 7(a) loan.

  • For the purchase of major fixed assets
  • Repayment terms of 10 or 20 years
  • For general business financing requirement
  • Repayment terms of up to 10 years or 25 years

Further, another popular SBA loan program is the SBA micro loan program. The SBA offers micro loans to new and small business seeking for loans. While these loans are small, they are not actually said as shirt term as term lengths get extended over a long time period. Some details regarding the SBA micro loans are:

  • Up to $50K in loan amount
  • Repayment terms up to 6 years
  • For expanding or starting a new or small business

In case you fee unsure about which SBA loan program to opt, you can talk to our experts and get help and options to decide which program is right for you and also know whether you will qualify for it or not.

If you are not there yet, we will work with you to graduate your business up to the SBA loan, for the most cost effective and long term business loan option.

The Types of SBA Loans

#1. All purpose 7(a) loan program

The most popular SBA loan program is the 7(a) loan. This is designed to render funds for a broader list of businesses. It targets small companies and identifies whether a company is small by its number of employees or annual revenues.

The max loan amount available under the 7(a) program is $5 million. This loan is a general purpose loan and the fund is utilized for any business requirements. These include:

  • Refinancing existing obligations of your business
  • Acquiring another company
  • Buying land and a building
  • Funding working capital
  • Starting a new business

Most 7(a) loans are used to buy assets like equipment and real estate because of favorable conditions that let one to repay the loan over the useful life. The long repayment period keeps payment low, meaning more capital to stay in your business.

Now, SBA loan does have some restrictions on how these are used. Funds guaranteed by the SBA cannot be used to fund any investment, or any passive business activities such as buying a building that will be leased to another business. These loans cannot be used to reimburse a business owner for money priory invested, or repay money owned to the govt. like the taxes.

#2. SBA Express Loans

SBA Express loan is another option under the 7(a) program. It renders the lender the flexibility to offer a revolving loan structure for a particular time. What this means you can draw funds for some amount of time paying only interest and treating the fund like line-of-credit, prior to repaying the loan through principal or monthly payment of interest. The max term on this loan is 7 years.

#3. 504 Real Estate and Equipment Loan

In case you require a loan to buy machinery or real estate, a 504 loan could help. This loan works differently from 7(a) loans. Here, the applicant has to give equity contribution as low as 10% of the asset’s buying price.

Most of these loans are structured and will work in tandem with the lender to give 40% of the project funding. Also, a conventional lender like credit union or bank provides at least 50% of the financing. The process here is more complex than other forms of financing as there are two participating lenders to collaborate.

Interest rate for 504 loans is fixed for 20 years which is 10 years for equipment loan and the asset you buy will serve as collateral for the loan. Here the personal guarantee is needed.

The Bottom Line

Prior to applying for any kind of business loan, it is wise to assess your business financial health and requirements. The small business administration suggests you to consider the strength of your industry, and know how to use and repay the loan.

So, it is essential to develop a business plan to answer the questions, review a substantial, and have well though plan prior to approving the loan to expand or launch a business.

A traditional business loan will usually be fast to get and have low fees. Here, SBA loans offer crucial benefits including being able to get a loan at every stage of the business growth.

SBA Disaster Loan, EIDL, SBA Disaster Assistance Texas

SBA disaster loan by Money Man 4 Business in Houston, get eidl relief assistance to apply with reconsideration application for SBA emergency loans for your small business effected by disaster.

Due to the outbreak of many hazardous situations like earthquakes, flood, pandemic or more such like, the small businesses are seeking financial help, and their best hope is the loan from SBA disaster loans. The low-interest long-term SBA disaster loan is a viable option for small businesses suffering from the economic downturn or the business that wishes to grow but cannot secure loans from non-government finances.

SBA emergency loans are working capital loans available to small businesses and most private non-profit organizations. Currently, all small businesses in all U.S. states and territories are currently eligible for small loans with low interest due to the pandemic.

However, to do so, the governor of the state has to declare that the state is an economic emergency and also the country where the business is headquartered declares economic emergency so that the business is entitled to apply for the loan. While most of the businesses are eligible to apply for the SBA disaster assistance, some businesses like the marijuana shops, casinos, racetrack, etc. are not eligible for such loans.

In the month of March’20, the U.S. Federal Reserve signed the Corona Virus Aid Relief and Economic Security (CARES) act, which is a big corona virus relief bill, the sole purpose of which is to support the small business during this uncertain time due to the pandemic. One of the actions in the bill is the Paycheck protection program

The program has been originated from the CARES act, which was initially set up to provide SBA disaster assistance to American small businesses with eight weeks of cash-flow. In this program, small businesses are eligible, with the loan having a maturity rate of two years at an interest of one percent. There is no security or personal guarantee required against the loan; also, a loan can be forgiven and basically turn into a non-taxable grant.

These program loans are more extensive than the SBA disaster loan assistance; even small businesses having sole proprietorship, self-employed individual, and freelance workers are eligible for the loans through this program. But there are conditions; at least sixty percent of the loan needs to be used for payroll and employee benefits.

The balance forty percent needs to be used to mortgage interest, rent, lease, and utility payment. The loan is not directly paid by the SBA, but they back the lenders. The purpose of the program is to protect the paychecks of the employee.

How to get SBA disaster loan assistance?

In recent years, the USA’s small business has suffered a number of major disasters like wildfire, earthquakes, hurricanes, flooding, and droughts. But the major crisis has been the Covid 19 pandemic. As a small business or a startup, if you seek relief, your business might be eligible for the SBA disaster loans in Texas. They will provide you a low-cost business loan that will help you rebuild your business keep you in operation.

The SBA disaster loan has a low fixed interest rate and generally carries fixed, low monthly repayment. It has a fixed interest rate for the entire loan life, and the formula is set as per the law, and it may depend upon the type of disaster and the market condition. For instance, the interest rate due to the pandemic Covid 19 for-profit business is fixed at 3.75%, and for non-profit business, it is fixed at 2.75%.

For small business disaster loans, both physical and economic disaster loans are available in the disaster area. To avail of this loan, the business must be a small business which is located within the declared disaster area. A business that is owned independently and doesn’t dominate its operation is deemed a small business. But the business which racks their one-third revenue through legal gambling activities like casinos and racetracks is not considered eligible for such loans.

The SBA disaster loan assistance can be used to replace or repair the damaged property owned by the business, which might include the real estate, supplies, machinery, inventories, etc. They can also be used as the capital that is designed to meet the financial obligation for the business.

PPP Loan Forgiveness Application, SBA PPP Loan Forgiveness

SBA PPP Loan Forgiveness Just Got Simpler with Money Man 4 Business

Use our professional team to make your SBA PPP loan forgiveness application process simpler.

We do all the paperwork just at $499, and you run your business. Any query call us at 888.882.2741 Ext 0 or Make an Inquiry below.

How to Apply for SBA PPP Loan Forgiveness?

To apply for SBA PPP Loan Forgiveness, we need to understand what is a SBA PPP program and how it works and what are the eligibility criteria to Apply for PPP Forgiveness? So just learn few basics of SBA PPP loan program.

Why SBA PPP also called as Grant or What is SBA PPP Forgiveness?

SBA PPP is a forgivable loan program which is meant to keep small business owners and their employee working for 8 weeks period from the time you received the loan. This loan also can be used to pay mortgage interest, rent and utilities bills for 8 weeks from the time you have received the loan. These are the cases where you can use the loan for and have the loan(principal + Interest) forgiven which means you don’t have to pay it back which effectively makes it a grant to you by SBA.

What else you can use the SBA PPP loan?

You can also use this loans for any other categories just like any other business loan but those usage of loans will not be forgiven.

What is SBA PPP (Paycheck Protection Program) loan?

It was a SBA Business loan program passed into law as part of the cares Act which was signed on March 27th 2020. This program has been authorized up to $349 Billion dollars to provide loans to small businesses across the Unites State.

Rates & Terms

There is no guarantee or collateral required for this loan. The loan amount is calculated as two and half times of your average monthly payroll and the maximum loan amount per business is $10 Million Dollars. It has a fixed interest rate of 1% and term is 2 years for the loan amount that has been used in non-forgiven category. It has monthly repayment. To avoid higher interest, you can pay it back before 2 years as well and there is no prepayment penalty for doing that.

Businesses Eligible & Rules for Loan Forgiveness as below:

Use of proceed: Payroll costs, mortgage interest, rent and utilities.

Entity Type: All businesses including non-profit, veterans organisations, tribal concern, self-employed individuals, sole proprietorships and independent contractors with 500 or fewer employees. In some cases, Even if you have more than 500 employees also eligible if they meet industry specific size standard.

Citizenship is not required but must have Tax ID number (EIN/SSN).

All Owner must have 20% minimum ownership need to be on the loan.

No Minimum credit score Required

No Minimum Revenue Required

No Minimum time required although must be in operation in February

How to get your paperwork ready to apply for SBA PPP Forgiveness?

To get a full loan forgiveness or a part of it, you must follow the process with complex rules and calculations. Any small size Error on PPP Forgiveness application or with documents will leave your application on the table.

If you or your Business has received SBA PPP. We are here to help with all the paperwork for the PPP Forgiveness application to get a error free Application with our help of Professional CA. So what are you waiting for ?

WANT TO START YOUR SMALL BUSINESS – GRAB SBA 7(A) LOAN INSURED BY THE SBA

Little to know about the SBA 7(a) before you start

Small Business Administration (SBA) is a government agency in the U.S. that assists the small business owners and their small businesses by providing small business loan. SBA aims at strengthening the US’s economy by helping a small business to grow. Small business loan refers to an amount given to an aspirant who wishes to start a small business. Business owner can use the small business loan for an existing small business, to start a new small business or to finance an existing small business and for the activities that may require cash in the future. In other word we can say that entrepreneurs need capital for conducting day to day business.

SBA 7(A) loan –Make your dream come true

There are different SBA loan programs out of which SBA 7(A) is the prime one that offers small business loan to the existing small business or to start a fresh small business. SBA 7(A) loans can be used for variety of purposes and the SBA is responsible for setting the upper limit of the interest rates that can be charged on the SBA 7(A) loan by the banks. Maximum interest rate on the SBA 7(A), in turn, depends upon the market rates. It changes as the market rate changes. Upper interest rate on SBA 7(A) loan is majorly dependent on 3 factors-the base rate or prime rate or SBA peg rate, duration of the term of the loan, which may be lesser or greater than 7 years and the size of the loan.

Who can approach SBA for SBA 7(A) loan?

To gain the benefit of acquiring SBA 7(A) loan, a business must be small as according to the definition given by the SBA, should do business in the U.S., should have reasonable equity investment, must have used the other financial resources plus the personal assets before obtaining financial help and should be able to present the need for the SBA 7(A) loan. Also, person seeking the loan must not be default for any existing debt obligation to the U.S. government. The loan applied must be used for the right business purpose.

Are You All Set: Quick check on the documents

A loan applicant is probably asked to furnish his/her personal details as about his/her background, his/her address, names that he/she uses his/her educational background and criminal record, if any. Prior criminal history is not necessary disqualification. Special committee make the final decision. He/She also has to produce his/her business experience to assess his/her efficiency in the business he/she has suggested and acquiring loan for. He/She should be able to submit prior years business financial statements. projecting the financial statements, profit and loss, cash flows and balance sheet. Most of the time, applicant is required to produce his/her personal and business income tax returns from last 3 years. Other documents may include business credit report, financial and bank statements and some other legal documents like business licenses and registrations required for to conduct business, Articles of Incorporation, copies of contracts with any third parties, commercial leases and franchise agreements.

What is the typical cost for SBA 7(a) Loan

  • $70,000 to $350,000 are the typical SBA 7(a) Loan size.
  • Loan amount for typical of $350,000.
  • For 10 years for Interest & Principal repayment term,
  • Monthly payment $3,929.80, Interest rate 6.25% APR including fees 7.73%.
  • The most typical rates are 6.25% to 7.25% interest rate is variable and based on Prime Rate plus 2.75% to 3.75%.

Your SBA resource Specialist can advise and suggest the various other options and exceptions are available.

So Are you ready to choose between 44 business loan programs ?

APR starting from 5.49%

Pre-approve your loan now

SBA EIDL Reconsideration Business Loan Program

SBA EIDL Reconsideration Program

If your SBA EIDL loan application was denied or you need additional funds from EIDL. You still have an opportunity to submit an explanation, provide updated information utilizing SBA & IRS forms. Request your application to be reviewed again. Money Man 4 Business offer Loan Packaging services have been very successful with the EIDL reconsideration.

SBA EIDL did not offer, approved or funded your business with enough capital less than the current $150,000 CAP for SBA EIDL loans.You may qualify for additional capital especially if you can prove intend of use of the funds for Hiring more US-based employees & investing into USA made inventory.

Resolution: Speak directly with Money Man 4 Business, Chief Financial Officer John (JJ) Guillory at 281.763.2294 ext. 0. John Guillory has over 32+ years’ experience working with Government insured &/or funded Loans.

When an applicant applies for SBA Economic Injury Disaster Loan, the economic injury is not substantiated based on the initial application. On the basis of information provided by you on your loan application, it has been determined that your economic injury cannot be substantiated.

Many applicants did not seek professional or experienced help completing the application & incorrect figures were used on the initial application.

Resolution: Money Man 4 Business can request your application to be reconsider for up to $2 million which is the current CAP amount for SBA EIDL loans. If your figures were reported incorrect. Money Man 4 Business will revise any portion of the application that may had been incorrectly report at the initial application.

If you had late payments in the past and might be caused by you are struggling with low cash flow, reduced business revenue because of the disaster or you made all payments on time but you are over leveraged because you have depend on your personal credit to support your business cash flow requirements.

Resolution: You can submit your current Experian Credit report to Money Man 4 Business. We will review the entire Credit report with you and develop narrative report to explain how problems & economically issues in the past has hurt your credit while you were building your business. In the past 10 years in the US Business Owners has been depending on personal credit & financing that has taken away from the business profit margins.We recommend you obtain a FREE current “Experian” consumer credit report from here. After you submit the Current Experian credit report. We will review in detail with you and help compose narrative report that we will submit on your business behalf for your application to be reconsidered for SBA EIDL loan. Link to IQ: https://www.identityiq.com/sc-securepreferred.aspx?offercode=4311491X

When the SBA did certain types of verification of various data of information regarding the Legal Entity. Certain Information could not be verified such as Business Banking Information, Your Federal EIN, Legal Entity Status, Taxes or other financial Information could not be verified.

Resolution: We have list of various items to use to verify Business Financial & Entity information. That information is submitted using IRS & SBA required Government forms. The process is manged by our SBA Specialist Team to ensure compliance and accuracy. The most consumed time currently is ordering the Business prior years Federal Tax return information. Files are getting funded. Patience and Accuracy is important, Money Man 4 Business has the knowledge.

888.88.CASH.1 ext: 0 (888.882.2741)

Cash@moneyman4business.com

Or

SBA 504 Loan Program

SBA 504 Loan Program
From Money Man 4 Business

Check your eligibility in less
than 3 minutes with our Eligibility survey.

3 MINUTES ELIGIBILITY SURVEY

OR

Best for small to medium size business owners

SBA 504 loan program can be very beneficial for small to medium size businesses due to their longer repayment period and fixed interest rate. We at Money Man 4 Business make sure you get the best program at best rate for your business growth and success. And we have made this easier for your business to check their eligibility for our business loan programs with our 3 minutes eligibility Survey. Just visit our website moneyman4business.com and click on 3 minutes eligibility Survey.

Why SBA 504 loan program

Money man 4 Business has a customized solution & can offers of the SBA 504 & other Microloan for independent companies.  Additionally, SBA 504 Loan for business loans is a very good resource for businesses & allow the business to grow through the acquisition of commercial land, refinance existing Commercial Business Mortgage, Restaurants, Bars, Retailer Build-out floor plans, all the business fixtures, equipment, furniture and many more fixed assets, start-up inventory,  Heavy Commercial equipment, various manufacturing machinery equipment & limited to 20% of Commercial appraisal amount can be cash out for business cash flow at the time of loan closing and many more use of proceeds for  you and your project to be successful.

The U.S. Small Business Administration 504 Certified Development Company Loan program conserves your working capital by requiring only a 10 percent borrower contribution. If you do not qualify for conventional financing, the SBA-backed 504 loan may be right for you. Certified Development Companies (CDCs) are nonprofit corporations that promote economic development within their communities through 504 loans. The SBA authorizes CDCs to provide financing to small businesses with the help of third-party lenders (typically banks). SBA loan amount: Loans are generally from $1.5 million and $10 million.

Features:

  • Amounts up to $10 million
  • Tenure up to 25 years for real estate
  • Tenure up to 10 years for Machinery and Equipment
  • Commercial real estate 90% LTV
  • No Minimum credit score required
  • Multiple loans can be consolidated and/or refinanced
  • Interest rate Current Prime + 3% variable rate
  • Backed by US Govt.

SBA 504 Loan Structure:

  • 50% Bank – First position. Approved SBA Lender
  • 40% CDC – Second position. Approved CDC in your State.
  • 10% equity from borrower
    • Borrowers can refi up to 90% of the current appraised property value. The refinancing may also include eligible business expenses
    • Other Assets can be used as collateral to get to 90% LTV
      • If the real estate is for special use, it will require an extra 5% borrower injection

Use of Proceeds:

  • Long-term, fixed assets for expansion or modernization (usually real estate or large heavy equipment with life expectancy of more than 10 years).
  • Refinancing of large equipment and/or owner-occupied commercial real estate may also be possible.
  • Commercial real estate 90% LTV for Refinance, Purchase & Construction loans

Speak with our CFOMr. John Guillory.

It’s very simple to make an Inquiry online or take a 3 minutes eligibility survey at our website or just call us at 888.882.2741 Ext.0 (888.88.CASH.1 ext-0) and ask for Mr John Guillory.

Recent Fundings 

Recent Funding 1: Amount $1,100,000, monthly payment of $10,782  for 25 years Loan.

Recent Funding 2: Amount $1,600,000, monthly payment of $15,682  for 25 years Loan.

Recent Funding 3: Amount $3,200,000, monthly payment of $27,875.44 for 25 years Loan.

Eligibility

  • Business at least 24 months old
  • Debt being refinanced must be a commercial loan.
    • Refinance the loan is at least 24 months old at the time of 504 Refinance application.
    • 85% or more of the existing loan was used to obtain a 504 eligible fixed asset
    • Secured by a 504 Fixed Asset
    • Borrower has been current on loan payments for the last 12 months
  • 51% or more owner-occupied

Ineligible Businesses

  • Nonprofit (beneficent, strict, government substances)
  • Real Estate venture firms
  • Firms engaged with theoretical exercises
  • Dealers of uncommon coins and stamps
  • Firms engaged with loaning exercises
  • Businesses engaged with pyramid deals plan
  • Passive organizations
  • Private clubs and organizations that limit participation
  • Businesses essentially occupied with advancing religion
  • Businesses essentially occupied with political exercises

Ineligible Use of Funds

  • Requirement of Liquid fund or Working Capital (minimum amount can be approved)
  • To manage the Inventory
  • The assets which have the Goodwill
  • Several fees i.e., partnership fees
  • Tenant growth
  • Mostly for consolidating existing business debts

Required Documents:

  • Six months of bank statement & current month to the date Bank statement
  • Three years of Business & Personal tax returns.
  • Current Year to Date P&L / Balance Sheet date.
  • Schedule of Liabilities (download)
  • Money Man 4 Business application (LINK)
  • Schedule of Real estate assets. (Link)
  • Information on the collateral will be used to secure this 504 Loan. (if you selected the property).
  • Experian Credit report  https://www.experian.com/

Call us today we will assist with any questions or application requirements. Loans are Pre-Approved within 2 business days and complete funding within 5 to 15 business days.

Get Started Here!

It is quite easy for you to apply with us. Just visit our website moneyman4business.com. Look for SBA 504 Loan Program or any other programs you like to apply. At the top of the page you will find Apply online button, Just hit it and fill the application and you are good to go or else just call us at 888.882.2741 Ext-0. We are always here to help, If for whatever reason it goes to voicemail, We will call you back as soon as possible.

We are here for you

Need Help?

888.882.2741 Ext. 0

Cash@Moneyman4business.Com