The Truth About Options For Loans For Small Business

The truth is revealed about options for loans for small business. The news suggests that the availability of external financing for small businesses has tightened or withered away completely. But this is not true.

SBA Business Loans are still available to companies looking to expand and can show a solid performance and longevity. Or if you are seeking start up business financing or a franchise loan, make sure the franchise has a good ratings. Knowing where to look for

If you are searching for SBA business loan, you should contemplate these options:

1. SBA 7(a) Loans. This program is for start up business financing and existing businesses, which is designed to help small businesses secure financing at reasonable terms through commercial lenders. To be eligible a company must be a small business as defined by the SBA and meet all requirements.

2. SBA 504 Loans. If you are purchasing commercial real estate for your business and are planning on occupying 51% or more of the space, than this is an option for you. SBA 504 allows a smaller down payment from the borrower which allows more reserve for cash flow. Usually the interest rate is competitive for the SBA portion of the loan, which is fixed for the entire life of the loan.

If you are seeking alternatives to SBA business loans, you should contemplate these options:

1. Securities Based Loan. This program provides terms based on its evaluation of the risk and future performance associated with your stocks, bonds, or US Treasuries that is pledged as collateral. This program allows you dual appreciation when the value goes up. Also the same number of shares that were pledged are returned to you when you pay back the loan and interest.

2. Self Directed IRA Loan. This enables the investment of your retirement accounts like your IRAs, 401(k)s, 403(b)s, Keoghs, SEPS etc., to be utilized either for the down payment or purchase of a business or franchise without tax penalties.

Borrowers need to discover all their options. Keep in mind that good companies are certainly going to make it through the tough times. Financing is available to small businesses that are in a healthy financial position. Entrepreneurs will need to stay agile during this time and be wise when it comes to finding extra funds for their businesses needs.