The specific terms of SBA loans are negotiated between a borrower and an SBA-approved lender. In general, the following provisions apply to all SBA 7(a) loans.
Loan Amounts 7(a) loans have a maximum loan amount of $5 million. SBA does not set a minimum loan amount. The average 7(a) loan amount in fiscal year 2015 was $371,628. Fees Loans guaranteed by the SBA are assessed a guarantee fee. This fee is based on the loan's maturity and the dollar amount guaranteed, not the total loan amount. The lender initially pays the guaranty fee and they have the option to pass that expense on to the borrower at closing. The funds to reimburse the lender can be included in the overall loan proceeds. On loans under $150,000 made after October 1, 2013, the fees will be set at zero percent. On any loan greater than $150,000 with a maturity of one year or shorter, the fee is 0.25 percent of the guaranteed portion of the loan. On loans with maturities of more than one year, the normal fee is 3 percent of the SBA-guaranteed portion on loans of $150,000 to $700,000, and 3.5 percent on loans of more than $700,000. There is also an additional fee of 0.25 percent on any guaranteed portion of more than $1 million. Interest Rates The actual interest rate for a 7(a) loan guaranteed by the SBA is negotiated between the applicant and lender and subject to the SBA maximums. Both fixed and variable interest rate structures are available. The maximum rate is composed of two parts, a base rate and an allowable spread. There are three acceptable base rates (A prime rate published in a daily national newspaper*, London Interbank One Month Prime plus 3 percent and an SBA Peg Rate). Lenders are allowed to add an additional spread to the base rate to arrive at the final rate. For loans with maturities of shorter than seven years, the maximum spread will be no more than 2.25 percent. For loans with maturities of seven years or more, the maximum spread will be 2.75 percent. The spread on loans of less than $50,000 and loans processed through Express procedures have higher maximums. *All references to the prime rate refer to the base rate in effect on the first business day of the month the loan application is received by the SBA. Percentage of Guarantee SBA can guarantee as much as 85 percent on loans of up to $150,000 and 75 percent on loans of more than $150,000. SBA's maximum exposure amount is $3,750,000. Thus, if a business receives an SBA-guaranteed loan for $5 million, the maximum guarantee to the lender will be $3,750,000 or 75%. SBA Express loans have a maximum guarantee set at 50 percent. https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/general-small-business-loans-7a/7a-loan-amounts-fees-interest-rates
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SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo (NYSE:WFC) today announced the launch of FastFlex?
Small Business Loan, an online, fast-decision loan that is funded as soon as the next business day and offers a competitive interest rate to small businesses with short-term credit needs. An innovation built in-house by Wells Fargo, the new loan product will be available in late May to existing customers, and joins the Wells Fargo family of small business products and comprehensive support offered through Wells Fargo Works for Small Business®. FastFlex? Small Business Loan builds on Wells Fargo's focus on small businesses, a market in which the company has set a five-year $100 billion lending goal. Since setting the goal in 2014, Wells Fargo has provided $40.7 billion in new loans to small businesses1 (Jan. 2014 - March 2016). "Because small businesses want faster, more convenient loan options, online and at competitive rates, we created Wells Fargo FastFlex Small Business Loan," said Lisa Stevens, Wells Fargo's head of Small Business. "With a $100 billion lending goal, we want to make every responsible small business loan we can. FastFlex Small Business Loan will help by offering short-term credit through an easy, fast-decision application process that includes competitive interest rates, clear terms and as-soon-as next day funding. This will put short-term credit within reach for many small businesses seeking to achieve financial success." The FastFlex Small Business Loan was developed by Wells Fargo Business Direct, a team that provides small business loans under $100,000 each. The typical FastFlex Small Business Loan customer is expected to have strong cash inflows, and short-term credit needs for funding ranging from facility expansion to cash management. The FastFlex Small Business Loan will be available with one-year terms, at amounts ranging from $10,000 to $35,000, with required payments made on a weekly basis automatically deducted from the customer's business-deposit account. It will be available to Wells Fargo business-deposit customers who have been a customer of the bank for at least one year. Beginning in late May, existing Wells Fargo customers can apply for the FastFlex Small Business Loan online or by phone. Since August 2015, a version of the FastFlex Small Business Loan has been offered as part of a limited pilot to a set of pre-qualified existing Wells Fargo customers. Among the current FastFlex Small Business Loan customers is John Armstrong, Clothier, a custom-clothing business based in Vestavia Hills, Ala. "As a small business owner, I have found that capitalizing on good opportunities sometimes requires acting quickly. But securing funding is often a lengthy, time-consuming process," said John Armstrong of John Armstrong, Clothier. "I learned about Wells Fargo's FastFlex Small Business Loan at a time when we needed additional capital to purchase inventory and increase our marketing efforts. The loan application and approval process couldn't have been simpler and we received funding very quickly." Wells Fargo Works for Small Business® The FastFlex Small Business Loan builds on the comprehensive offerings of Wells Fargo Works for Small Business® - a broad initiative designed to deliver guidance and resources to help business owners achieve financial success. Through WellsFargoWorks.com, Wells Fargo offers an online community and education resources designed to help small business owners start, run, finance and grow their businesses. It includes The Business Plan Center, a free online tool introduced in 2015 that has helped 10,000 small business owners create and update their business plans in its first year and received nearly 1 million visits. "Applying and obtaining a loan should be simple and convenient; getting ready for a loan needs to be thoughtful and well-planned," Stevens said. "It's as important as ever for small business owners to have one-on-one conversations with bankers, and access to resources and support to get credit-ready. It's the reason we're adding more Wells Fargo Works for Small Business tools that help businesses prepare to achieve success - from building a business plan to understanding how to manage cash flow." Small Business Appreciation Celebration From April 1 through June 30, 2016, Wells Fargo is conducting its annual Small Business Appreciation Celebration. During this time, Wells Fargo will provide business owners with special business offers on several products and services. Wells Fargo's recognition of small businesses coincides with local and national events conducted by the U.S. Small Business Administration during and following National Small Business Week, May 1-7, 2016. About Wells Fargo Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.8 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,800 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 269,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune's 2015 rankings of America's largest corporations. Wells Fargo's vision is to satisfy our customers' financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories. Wells Fargo serves approximately 3 million small business owners across the United States and loans more money to America's small businesses than any other bank (2002-2014 CRA government data). To help more small businesses achieve financial success, in 2014 Wells Fargo introduced Wells Fargo Works for Small Business® - a broad initiative to deliver resources, guidance and services for business owners - and a goal to extend $100 billion in new lending to small businesses by 2018. For more information about Wells Fargo Works for Small Business, visit: WellsFargoWorks.com. Follow us on Twitter @WellsFargoWorks. 1 - New loan commitments to small businesses primarily with annual revenue less than $20 million http://www.businesswire.com/news/home/20160510005618/en/Wells-Fargo-Launches-FastFlex-Small-Business-Loan Fertility Treatments are expensive, often ranging from $12,000-$15,000 per IVF cycle. Surrogacy costs for arrangements in the U.S. often range from $100,000 - $130,000 and Guatemalan surrogacy costs and Guatemalan surrogacy costs range from $36,000-$45,000. There are a number of options that are available for financing these costs, and programs that can help reduce the costs of surrogacy arrangements:
Loans Discount IVF clinic programs Grant Programs IVF Refund Programs Embryo Adoption Programs LOANS Unsecured and secured loans are an option. There are a couple of loan programs that are designed specifically for health care costs of fertility treatments: 1) Capital One: 2) Medical Financing Solutions. DISCOUNT IVF PROGRAMS Some fertility clinics offer discount programs so doing some research online and with your local fertility clinics can turn up some possibilities for cost savings which may also be available for medical costs for surrogacy arrangements as well. GRANT PROGRAMS Grant programs are available. The following are some good resources for information on obtaining grants: Fertile Dreams Grant Program Conceiving Concepts IVF Scholarships IVF REFUND PROGRAMS Some clinics allow the patient to prepay a certain number of in vitro fertilization (IVF) cycles. If the patient is unsuccessful after a certain amount of attempts, then she may receive some or all of her money back. EMBRYO ADOPTION PROGRAMS For those in need of egg donation, the costs of matching with an egg donor and the medical costs associated with the formation of an embryo can often reach $30,000. One option is to consider embryo adoption whereby embryos that are not being used by couples are given to programs so that the embryos can be adopted by parents in need rather than destroying the embryos. Programs offering embryo adoption include Embryo Donation and Snowflakes, both organizations offering embryo adoption services. Lastly, family and friend can often be a source of emotional and financial support. Also, taking a careful look at your spending habits and budgeting for infertility and/or surrogacy arrangements can be a start to your goal of building your family through assisted reproductive technology and surrogacy. http://adoption.ezinemark.com/financing-infertility-treatments-and-surrogacy-cost-financing-4ed1122fd7f.html Small business owners thinking of purchasing or renovating
commercial real estate or purchasing equipment to grow or expand their businesses should consider the U.S. Small Business Administration's Certified Development Company (CDC) 504 Loan Program. A 504 loan provides access to the same type of long-term, fixed-rate financing enjoyed by larger firms. Interest rates are equivalent to favorable bond market rates. Most Michigan businesses are eligible for this loan program. While the 504 Loan Program defines a business as small if its net worth is under $7 million and net profits after taxes are under $2.5 million, businesses may also qualify under our 7(a) size standards. For example, any manufacturer with less than 500 employees would be eligible, and there are many industries where SBA has set a higher number. Almost any type of business is eligible for 504 financing, including manufacturing, wholesale, service, professional service and retail. A 504 loan may be used for purchasing such fixed assets as land and improvements, including owner-occupied buildings; grading, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or long-term machinery and equipment with a useful life of at least 10 years. Soft costs like legal and architectural fees, environmental studies, appraisals, and interest and fees on the construction and/or interim bank loan can also be rolled into the loan. Loans for working capital, inventory, debt consolidation or refinancing are eligible through our 7(a) Program. A typical 504 project is financed 50/40/10. Fifty percent of the project costs are provided through a senior private-sector lender or bank. This senior loan is usually for at least a 10-year term at a fixed or variable rate, depending on the relationship with the lender. Forty percent of the project costs would be financed by a fixed-rate debenture secured with a junior lien from an SBA Certified Development Company. The debenture is backed by a 100 percent SBA guaranty. The final piece of the pie is a contribution of 10 percent equity from the small business being helped. It is possible to require less from the business if a city or town is willing to participate in a subordinate position. Because of the lower down payment required and the ability to finance the soft costs, the small business will realize up front cash savings of approximately $100,000 on a $1 million project. The maximum SBA debenture under this program has recently been increased to $1.5 million ($4 million for manufacturing loans), and maturities of 10 or 20 years are available. This means that with a 504 loan the total project cost could be over $10 million. Interest rates on 504 loans are pegged to an increment above the current market rate for five-year and 10-year U.S. Treasury issues. The rate on the 504 loan is fixed for the life of the loan and is set when the CDC sells the bond to fund the loan. Effective all-in rates, which include all fees and closing costs, on 20-year bonds in recent months have ranged between 6.79 and 7.07 percent. For more information To learn more about this program, call SBA at (313) 226-6075 or contact one of the following Certified Development Companies serving the Detroit Region: * Metropolitan Growth & Development Corp. Detroit, (313) 224-0820 * Oakland County Business Finance Corp. Pontiac, (248) 858-0879 * SEM Resource Capital Livonia, (734) 464-4418 RELATED ARTICLE: Benefits of the 504 Loan Program vs. conventional mortgage financing * Low down payment. In most cases, the company is required to inject just 10 percent, which allows the business to preserve cash for working capital. Most banks will lend only 60-70 percent of the appraised value of the real estate leaving the company to sink in 30-40 percent plus the cost of renovations and soft costs. * Fixed rate on the SBA 504 portion. Small businesses don't have to worry about the prime lending rate going up and can calculate the exact amount of their mortgage payments for 20 years. * Long term. 504 loans are for 10 or 20 years. Because the CDC is in second lien position, the bank or other lender doing the 50 percent first lien loan is willing to lend at a longer term. Longer terms reduce monthly payments. * Low interest rate. Even with the fees and closing costs included in the rate, the 504 program offers a low rate for a subordinate mortgage loan, particularly for small businesses. The blended rate between the bank portion and the SBA's 504 portion makes the project very affordable. Richard Temkin is director of the Michigan District Office of the U.S. Small Business Administration, a member of the Detroit Regional Chamber. [ILLUSTRATION OMITTED] These pages are brought to you by the Detroit Regional Chamber's Manufacturing Central ... the fundamental source for supplier health and growth of the region's manufacturing base. To learn more about this initiative, visit www.detroitchamber.com or call (866) MBR-LINE. Mark your calendar for the Detroit Regional Economic Partnership's Annual Breakfast During SAE Week, April 13 at the Detroit Marriott Renaissance Center, featuring Richard E. Dauch, co-founder, chairman and CEO of American Axle & Manufacturing Inc. For more information, contact Beverly Sturdivant at (313) 596-0343 or [email protected]. The Detroit Regional Chamber is a co-sponsor of the Manufacturing Showcase, May 10 on the Capitol lawn in Lansing. Presented by the Michigan Manufacturers Association (MMA), the event will feature displays representing the products and processes of a diverse group of Michigan manufacturers. For more information, contact MMA's Brenda Nalett at (800) 253-9039 ext. 512 or (517) 487-8512. Visit the Manufacturing Central home page on the Detroit Regional Chamber's Website at www.detroitchamber.com for a complete report on the Great Lakes Manufacturing Forum held in March. Manufacturing Central is also your one-stop shop for dozens of links to manufacturing organizations, associates and agencies. To learn more about Manufacturing Central, contact Lisa Katz at (313) 596-0460 or [email protected]. http://www.thefreelibrary.com/UpdateonSBA504loans:theyoffersmallbusinessesthesameterms...-a0133276288 502 Bad Gateway
The proxy server received an invalid response from an upstream server. Sorry for the inconvenience. Please report this message and include the following information to us. Thank you very much! URL: http://gather.com:1562/ Server: pc021.thor.asgard Date: 2016/07/29 14:42:37 Powered by Tengine/2.0.0 http://gather.com/ SAN FRANCISCO/NEW YORK (Reuters/IFR) - Many online lenders have failed to detect the "stacking" of multiple loans by borrowers who slip through their automated underwriting systems, lending company executives and investors told Reuters.
The practice is proliferating in the sector - led by LendingClub, OnDeck and Prosper Marketplace - because of many lenders' hurried, algorithmic underwriting, use of "soft" credit inquiries, and patchy reporting of the resulting loans to credit bureaus, according to online lending and consumer credit experts. Such loopholes, they said, can result in multiple lenders making loans to the same borrowers, often within a short period, without the full picture of their rising obligations and deteriorating ability to pay. Stacking is "causing problems with the whole industry," said Brian Biglin, chief risk officer of LoanDepot, a five-year-old mortgage lender that last year started making personal loans online. New revelations of loose lending could make it harder for the beleaguered sector to win back trust from investors who are already concerned about slipshod underwriting and rising default risk. The marketplace lending industry - which last year hit $18 billion in annual loan originations - has seen plummeting share prices and the retreat of some major backers, including BlackRock and Citigroup. Industry leaders LendingClub and Avant said they are aware of stacking and its dangers, but they downplayed the risks and did not provide examples of specific actions taken to prevent the practice. OnDeck and Prosper said they have launched efforts to detect and guard against stacking. "We have established proprietary algorithms," said Prosper spokeswoman Sarah Cain. Some higher-risk lenders allow and promote stacking as debt consolidation, but most lenders consider it a threat, particularly when not disclosed. Edward Hanson, the owner of Ella's Wood Fire Pizza, said he started stacking loans about five years ago to sustain his business. "You take out another one to help you pay for the first," Hanson said. Hanson, 55, said he already had loans from a variety of online lenders when he received offers from online business lenders OnDeck and Kabbage, which approved his application, he said. OnDeck knew Hanson had at least one other loan when he applied in August of 2014, and required that the existing debt be paid off as a condition of the new loan, said company spokesman Jim Larkin. When Hanson came back a year later, OnDeck declined his application because Hanson had stacked loans during the course of repayment, Larkin said. Kabbage declined to comment on Hanson's loans and did not respond to questions about its stacking policies. Hanson now pays nearly 40 percent interest on his latest loan, from yet another lender. "I pretty much feel trapped," he said. NERVOUS INVESTORS Institutional investors have lately grown wary of marketplace lenders after initially hailing them as disruptors of banks and credit card companies. Wall Street money is crucial for most online lenders, who need it to fund their loans. Citigroup ended its partnership with Prosper earlier this year. The bank had repackaged about $1.5 billion of Prosper's loans into securities since the partnership began less than a year ago. Investor sentiment was hammered again last month by a scandal at industry leader LendingClub. The company knowingly sold $22 million in loans that did not meet the agreed specifications of one investment bank, Jefferies, and falsified the applications of $3 million of those loans. LendingClub is under investigation by the U.S. Department of Justice, the company said last month, and a number of its large investors have halted investments in the wake of its chief executive's resignation. The New York Department of Financial Services also has said it will launch a probe into online lenders. Now concerns about stacking are adding to the industry's woes. One investment firm that was considering buying equity in a marketplace lender described stacking as a sector "blind spot." The firm declined to be named. Bill Kassul, a partner in Ranger Capital Group - which has about $300 million invested in marketplace lending and business lending - said stacking has become a concern in the last two years and poses a "big risk" to investors. Blue Elephant Capital Management stopped buying loans from Prosper for several months recently over concerns about weak underwriting and profitability. Marketplace lenders need to slow their lending processes and improve sharing of credit information, said Brian Weinstein, chief investment officer at Blue Elephant. Stacking was "one of the reasons why we think we saw credit deteriorate last summer when we stopped our marketplace lending program," Weinstein said. Blue Elephant last month announced plans to resume buying Prosper loans, in part because the company is charging higher interest rates. "SOFT" CREDIT CHECKS In their haste to give applicants quick loan decisions - sometimes within 24 hours - some marketplace lenders do not conduct thorough credit checks, known as "hard inquiries," according to industry executives. Such checks create an updated log of credit and loan applications, and they can lower a borrower's credit score. Soft inquiries don't require the borrower's consent and don't usually show up on credit reports. OnDeck said it runs only soft checks. LendingClub and Prosper said they initially run soft checks but run hard checks later in the process, just before funding loans. Running hard checks only at the last minute, however, can also leave other lenders in the dark, said Gilles Gade, president and CEO of Cross River Bank, which invests in many online lending platforms. At that point, the borrower may have already obtained other loans, he said, because hard checks can take about 30 days to show up on a credit report. Another problem: Loans that never show up on credit reports at all, because of uneven reporting by online lenders. "Not all lenders in our industry report to bureaus," said Leslie Payne, a spokeswoman for LendUp, which makes high-interest installment loans. In a February blog post, Experian, the credit bureau, said a "significant number" of marketplace lenders do not report their loans. Prosper, Avant and LendingClub told Reuters that they report their loans to all three major credit bureaus at least monthly. OnDeck said it reports to several leading commercial credit bureaus, including Experian and PayNet. Many lenders said they also pull data from other sources, including paystubs, tax documents and accounting software for businesses to size up a borrower's ability to pay. LoanDepot said it has taken several steps to mitigate the risks of stacking, including requiring months of bank statements for its borrowers and building custom algorithms to flag potential stacking activity. WHEN THE MUSIC STOPS Most online lenders focus on either business or consumer lending. Those lending to small businesses may face greater risk from stacking, in part because of a separate class of high-risk, high-interest business lenders that actively promotes the practice. Merchant cash advance lenders make loans based mainly on a business's expected revenue rather than its credit record or existing debts. They often scour databases of business loans - such as those by OnDeck or Kabbage - and use them as marketing leads to find new borrowers, online lending executives and investors said. OnDeck has made efforts to educate customers to stay away from lenders offering stacked loans, said Chief Operating Officer James Hobson. It has also started monitoring borrowers more frequently and joined the Small Business Finance Exchange, an effort to share lending data to guard against stacking. After OnDeck turned down the second application from Hanson, the pizzeria owner, he turned to World Business Lenders, a small business lender founded in 2011. He now pays 39 percent interest. Hanson would not detail his balance or his payments, but said he put up his house as collateral. The company said Hanson's latest loan reduced his payments from 44 percent of his business's revenue to 12 percent by offering a longer term. Some small business owners will keep borrowing as long as lenders grant approvals, taking one loan after another, said chief executive Doug Naidus. But at some point, he cautioned, the principal needs to get paid back. "The fifth stack pays the fourth stack, and the sixth stack pays the fifth stack," Naidus said. "But when the music stops, everybody's got to find a chair." (Reporting by Heather Somerville in San Francisco and Olivia Oran and Joy Wiltermuth in New York. Additional reporting by Lauren LaCapra and Michael Erman in New York. Editing by Carmel Crimmins and Brian Thevenot) http://www.reuters.com/article/us-usa-onlinelending-stacking-idUSKCN0YW0SV When it comes to getting a loan for your small business, it may not come down to who you know, but where you go. Banking Grades, a new grading tool from Philadelphia-based MultiFunding, found that some of the nation's biggest banks have the worst performances when it comes to small-business lending. Meanwhile, banks that recorded the best small-business lending performances are the ones most entrepreneurs have probably never heard of.
Banking Grades gathers data from quarterly FDIC call reports to grade banks' small-business lending performance. Banks that use 25 percent or more of their total domestic deposits to make small-business loans -- which MultiFunding defines as loans of under $1 million -- get an A, while banks that use under 3 percent of their deposits to make small-business loans get an F. Small-business owners looking for a loan can easily search banks' grades according to the banks' zip code, city/state, name or address. The big banks (defined as those with deposits of more than $10 billion) that ranked the highest for small-business lending are: Zions First National Bank, Salt Lake City. Grade: A (25.44 percent) First-Citizens Bank & Trust Company, Raleigh, N.C. Grade: B (23.8 percent) Synovus Bank, Columbus, Ga. Grade: B (19.25 percent) Chase Bank Usa, National Association, Newark, Del. Grade: B (18.34 percent) Bancorpsouth Bank, Tupelo, Ms. Grade: B (17.13 percent) Wells Fargo Bank Northwest, National Association, Ogden, Utah. Grade: B (13.71 percent) Arvest Bank, Fayetteville, Ark. Grade: B (12.82 percent) Whitney Bank, New Orleans, La. Grade: B (12.02 percent) Capital One Bank (Usa), Glen Allen, Va. Grade: B (11.85 percent) Tcf National Bank, Sioux Falls, S.D. Grade: B (11.49 percent) The big banks did not fare so well. Among the biggest banks that got an F according to Banking Grades are Bank of America, JP Morgan, Citibank, Bank of New York, HSBC, Union Bank, Morgan Stanley, Goldman Sachs and Discover Bank. "In our opinion, big banks are not well equipped to lend to small businesses," said Ami Kassar, founder and CEO of Multifunding, which helps small businesses find the best loans available to them. "They are simply too bureaucratic and complex to handle small-business loans well." "The report myopically ignores commitments -- just a few months back, 13 major banks announced a landmark $20 billion commitment to increase lending to small businesses in underserved communities," said Elise Brooks, director of communications for The Financial Services Roundtable, an association that represents the nation's largest banks, insurance companies, securities firms and other financial institutions. "Additionally, small-business lending is more than just providing the financing for the loans themselves. Large financial institutions are leaders in non-lending ways as well. From offering financial education about putting together an attractive loan application to providing online resources, networking opportunities, and rebates for small-business owners -- the breadth and depth of this commitment goes beyond a simple loans to deposits ratio." As far as the ranking of the 10 best banks overall for small-business lending, many of those tend to be smaller banks. All of these top 10 banks got an A grade: Farmers State Bank, Hosmer, S.D. Community Bank, Nevada, Iowa Farmers And Merchants Bank, Milligan, Neb. First Resource Bank, Savage, Minn. Wright Express Financial Services Corporation, Midvale, Utah Security State Bank, Sutherland, Iowa State Bank Of Lismore, Lismore, Minn. Bank Of Glen Ullin, Glen Ullin, N.D. Bank Of Lindsay, Lindsay, Neb. State Bank Of Colon, Colon, Neb. This isn't a coincidence, according to Kassar. "Smaller banks are generally much better at making small-business loans than big banks," he said. "This is because the loan officers and the credit officers typically work in the same building and are able to work on a loan together and find the best way to get it done. Small-business loans typically require careful thought and creativity. There is almost always a twist. The smaller banks are much better able to handle this." While Banking Grades won't necessarily help small businesses get a loan, it can save them time in the process of looking for one. "Proper access to capital for small-business owners and entrepreneurs is one of the most critical issues facing our economy. And despite this, it's so tough to find the right bank or lender to go to," Kassar said. "As a country, we put dozens of roadblocks and landmines in front of our job creators. If this makes it a little simpler to help create jobs, we will be thrilled." UPDATE: This story was updated to include comments from The Financial Services Roundtable. http://www.huffingtonpost.com/2012/05/22/best-banks-small-business-loans_n_1522535.html When comparing commercial loans with SBA loans there are some things to keep in mind. First SBA loans have the highest loan to value in the industry. It's also very common to have the ability to put most of the costs of your project into your loan.
In the conventional commercial financing world you would be required to put at least 30-40% down on the purchase price and additional costs, say for renovations, equipment and supplies would be out in the cold unless you can the additional cash flow to pay for those items. When it comes to refinances you can rarely push the 60% loan to value mark. So it breaks down like this, 85% going with SBA or 60% going the conventional route. So, as you can see there are some big decisions to be made here when deciding to go conventional commercial loans or SBA loan. When it comes to 25 year amortization and periods ranging from 3-7 years, this is still possible with SBA. Going the conventional route you'll get the stop put on at about 3-5 year fixed rates where the amortization more than likely will never go past 15-20 years. When you have a short amortization schedule you then have an significant increase in your monthly payments and thus a huge drain on your cash flow. With SBA loans you won't have any balloon clauses since SBA loan are fully amortized, in other words they will be paid off at the end of the period. Conventional loans are structured such that you could have a loan that after say a 3 year fixed period, 10 year term on 1st, 20 year amortization and be faced with a nice balloon payment at the end of the term. With SBA loans you don't have to deal with that balloon payment burden which typically puts the borrower in a very tight pinch. SBA loans also have low prepayment penalties which is a bonus. For example on a SBA 7a loan, prepay is 5% for 1st year, 3% in year two, 1% year 3 then gone after that. The principle can be paid down by 25% of the balance without getting slapped with a prepay penalty fee. Conventional prepay is typically 5% for 5 years or 5% step down, when you go with SBA it offers more flexibility and just more reasonable. SBA loans are just flat out more dependable and viable option for lending. During this credit crunch SBA Commercial loan types are still being closed on while conventional loans are being denied which ends up costing the borrower serious cash and wasted precious time and effort. http://www.infobarrel.com/Commercial_Loans_Vs_SBA_Mortgage_Loans Are you looking to get a home loan? As
important it is that you find a loan agreement that is perfect for your needs, it is also equally significant that you have a clear objective on why you are interested to get your home refinanced. Are you looking to get a lump sum for your child's education? Or you may be thinking that it's the perfect time to get your home loan refinanced in order to get lower interest rates or lower monthly payments. A good reason may also be the chance of a fixed rate mortgage. Or your reason may be to simply consolidate your debts. Having your home refinanced is strongly dependent on your particular situation so make sure you know what your financial objectives are that will benefit you in the long run. But refinancing your home may prove to be a long process if you're not the nine-to-five regular type of person. Commission based professionals are finding it a tedious procedure to qualify for a home loan. Unlike their company-employed counterparts, small business owners and self-employed individuals lack the benefit of having a payslip as proof of a steady income. But don't worry. A stated home equity loan is the purposely-prepared solution for you. Mortgage lenders, in general base their approvals on a person's income. If a person has a number of income resources, the lender looks into the person's financial records to check the stream of income. There is a set debt service ratio that all lenders look at to make sure that the person is able to and financially capable of paying of their loan without hitting their assets hard. The best way to get your home loan approval get started, is to enlist the professional assistance of a mortgage broker. A mortgage broker can easily provide their clients with information on how to get 2nd mortgage financing or equity based financing on their homes based on specific situations. A mortgage broker may also be able to offer you access to home equity services and other sources of capital that would regularly not be available to you if you were to apply for the loan yourself. If you're looking to secure a stated income home equity loan, who else would be better to ask than a mortgage broker? If you've had difficulties in your past application, call one now. They will be able to offer you a great deal of help because they themselves are considered as commission based professionals. Applying for credit may be a daunting task for those who are self-employed because it might be difficult to prove a stable income that has been steady for a number of years because there is a great margin of variability involved. A mortgage broker has the financial knowledge that can help you surpass the barriers in acquiring a stated income home equity loan if your main problem is based on proof of income. By consulting a mortgage broker, this will be resolved in no time. http://www.infobarrel.com/Stated_Income_Home_Equity_Loans Bad gateway
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