Small Business Administration offers 90% Loan Guarantee!

Did you know that on March 16, 2009, President Obama announced changes to SBA programs that will help free up capital for small business owners? If you did, you may not know all the details. If you didn't, you will after reading this. In either case, accessing knowledge like this is exactly why you should turn to The Martin Luther King, Jr. Business Empowerment Center for information that affects your small business.You don't have to be a news junkie to know that banks are just not as generous with lending capital to small businesses as in previous years. What a lot of people misconstrue is the notion that banks are financially strapped due to all the bailout stories in the media. This is just not true, banks have the money they are just loan adverse due to the present economic conditions.In order to get capital flowing the Obama Administration has changed some of the SBA programs in order to entice banks to lend much needed funds to small business owners. One such change is the amount the SBA will guarantee to lenders in case of default by the borrower. The two most popular programs which suit our clients are the Community Express Loan and the Patriot Loan Programs. The SBA will now offer lenders a 90% guaranty for loans that are dispersed under the aforementioned programs.In addition, the SBA guaranty fee, certain processing fees and third party lender fees have all been eliminated. This will provide a HUGE incentive for lenders to make loans. BUT....remember, a client still has to have the necessary 5 C's of lending; credit, cash, collateral, capacity to repay and character. If you are shaky in one area, you many have a chance. If you have problems in multiple areas, even with these SBA initiatives chances are you won't be approved.But do not despair! The Center offers credit repair and financial educational workshops. Just think of it this way, you'll never get where you want to be if you don't do something about the situation now! What you start today, will pay off in dividends for the future. Call and set up an appointment with the Business Information Center and let's get you on your way!