The Best Kept Secret in Small Business Funding...The SBA!

In 2017, SBA administrator Linda McMahon stated that her agency is "the best-kept secret in the country." If entrepreneurs keep going to the wrong banks, it may stay a secret.

Over the years entrepreneurs started their small business with the belief that large commercial banks were their one-stop-shop for all their banking needs. This belief evolved as business owners opened their business, and began utilizing the convenience of local bank branches to open accounts for their daily deposits. Small business owners began adding many other banking services over time, including securing small business loans. In fact, this relationship instilled the belief in small business owners that their primary commercial bank was the best and only source to secure SBA loans.

The large commercial banks do process a significant volume of SBA-backed loans which offer entrepreneurs lower interest rates and down payments, and lower repayment terms than other standard bank loans. But the truth is that the large commercial banks' numbers are less impressive when compared with many small institutions, some of which specialize in such loans.

After the recession, many large commercial banks stepped away from small-business loans, but have been returning to that business over the past few years. But small-business loans are less profitable and riskier than larger loans made to bigger businesses. One of the many reasons commercial banks are moving back to this business is due to increasing interest rates. In addition, commercial banks don't have to lend to small businesses to survive, which means some large commercial banks are less likely to introduce and explain SBA-backed loans to clients. Since most small-business owners get lending information from their bank, and many patronize small local branches of large banks, they may never even learn that such loans are an option.

All in all starting and owning a small business has many challenges, finding adequate capital to either start or operate your business is the largest challenge the majority of small business owners. However, certain owners tend to face greater barriers than others.

The SBA is one of the best sources for small business funding and one of the most difficult to obtain. Additionally, the process is long, months not; days or weeks, the paperwork is overwhelming and a good credit rating is required. And, some of their loans require collateral and/or a personal guarantee. However, in the end if you do not qualify you have other options.

These options take less paperwork, usually one application, with documentation supporting three months of income and/or cash flow. The approval time is days not; weeks or months. Are these options more expensive? Yes! However, financing like managing a business is a step-by-step process. If at first, you cannot qualify for an SBA loan or other more traditional loan, obtaining a short-term high-interest alternative funding loan is an option that gives you cash flow to fund your business, while learning ways to improve your credit score. Once your score improves you will be able to refinance your high-interest loan with a new lower-cost SBA loan.

Get the funding you need NOW! Find Drew Cashmere on Linkedin or call 786-544-2700. Email: This email address is being protected from spambots. You need JavaScript enabled to view it.. Apply: CLICK HERE

At South Florida Funding Group: WE FUND THE IMPOSSIBLE, EVEN CANNABIS!