Your company needs a loan to grow. So you talk to your banker but your bank will not provide you the needed funds. What do you do next? According to Jim Parrish, growth acceleration services consultant at the Florida SBDC at USF, “When your bank does not want to grant your business the money it needs to grow, you should always consider trying to obtain an SBA loan. These loans are partially guaranteed by the SBA. Therefore, qualifying for one of them may be easier than qualifying for a non-guaranteed business loan.”
For the last U.S. Small Business Administration fiscal year (10/1/13 to 9/30/14), there were 458 business loans guaranteed by the SBA through its 7(a) loan guarantee program and another 99 loans through the 504 loan program in the Tampa Bay area.
Parrish suggests, “If your bank can’t help you, try one of the lenders on the lists below first before going to a lender who only occasionally does a SBA loan.”
The SBA 7(a) loan program provides financing to establish a new business or to assist in the acquisition, operation, or expansion of an existing business. Tampa Bay’s Top 10 SBA 7(a) lenders did 60 percent of the SBA 7(a) loans done in the area during the last year.
The SBA 504 Loan program provides financing for major fixed assets such as equipment or real estate. Tampa Bay’s top three SBA 504 lenders did 96 percent of the SBA 504 loans done in the area during the last year.
According to Parrish, certified business consultants with the Florida SBDC at USF can assist in preparing loan proposals and direct entrepreneurs to lenders who will seriously consider a request because they want to make loans.
To schedule an appointment, contact the Florida SBDC at USF via its Website.
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