A Government Program That Actually WORKS! It's no secret that I am not a big fan of government in general. History has shown that the bigger a government gets, the more control it tries to take, the less affluent people become due to taxation and controls. There is one government program that actually costs NOTHING from the tax payers and HELPS small businesses get needed cash for everything from starting up a franchise company to business expansion to purchasing your business's buildings and equipment and much more- I am talking about the SBA Loan Program.

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Before you stop reading thinking you hate SBA, please read on to find how this loan product can be EFFECTIVELY used to help small businesses of all types to survive and thrive! SBA has a bad name with many borrowers because it takes a long time to close but actually it can be very quick if someone is used to doing these loans. We do a lot of SBA loans, and we can move as quick as the borrower! In most cases, SBA is the ONLY option to get low rates and get the money a business needs so it is worth understanding. There are basically 2 SBA loan programs, the 504 loan and the 7A loan.

Beginning this year, CMBS issuers are required to retain 5% of each loan in the risk position or sell to a B piece buyer.

The 504 Loan Program is actually a conventional first mortgage with a second mortgage by the SBA. We can usually issue terms on this program within the week. As long as the first mortgage company approves the loan and follows the SBA guidelines, the approval by the SBA on the second is almost always assured. This is the loan you want to use when real estate and equipment is involved-you need collateral. You get LOW FIXED RATES, CURRENTLY IN THE 4's, and again, it is really a conventional first mortgage. THESE LOANS ARE HOT RIGHT NOW FOR REFINANCING WHICH JUST OPENED UP AND ALLOWS BUSINESSES TO CASH OUT UP TO 75% ON THEIR EXISTING BUILDINGS FOR CASH FOR THE BUSINESS. I am getting one client $2.5 Million CASH OUT and his payment is going DOWN by $2000!!!! To lock up long term fixed rates with only 10% down, you can NOT go conventional. Conventional normally needs 25% down. The SBA programs allow you to put only 10% down and that is HUGE for cash flow. I love the 504 program for clients and you can get these long term fixed rates up to $12 million or more on this program!

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The SBA 7A Program is actually a loan by a bank where the SBA just backs the loan up to 75%. Think of this much like an FHA loan for a residential house. It has looser guidelines than conventional and allows less money down than conventional, typically we can get 90% financing on the SBA 7A program as opposed to having someone come in with 25%. Makes a big difference. THIS PROGRAM IS IDEAL WHEN YOU HAVE BUSINESS ONLY, WORKING CAPITAL TYPE NEEDS. These loans can be done with NO collateral up to $5 Million dollars. They tend to be adjustable, but they are 6% or less. If you go to almost any other source, equipment leasing, ACH lenders, merchant cash advance lenders, the rates are SIGNIFICANTLY higher. The long amortization of 10 years is great for helping cash flow. I am taking one client who has $5 Million of non SBA equipment debt that costs him a whopping $125,000 a month, refinancing him into an SBA 7A loan and bringing his payment down to $50,000! That is $75,000 saved PER MONTH! SBA 7A loans are also ideal for: - Franchise start-ups

- Business only expansion to 90%

- Deals where the borrower is tight on cash (we can put working capital into the loan to make up for light liquidity-actually getting the borrower cash back).

- Loans that have a few issues on them that keep them from conventional.

- This last point is important-it can be things as simple as a tough area to finance like Detroit for example, or some older credit derogatory items. IT IS EASIER TO APPROVE A LOAN SBA 7A THAN CONVENTIONAL! The banks are only at risk for 25% of the loan so they are much more aggressive.

Give me a CALL TODAY at 512-650-8630

In short, SBA is a loan program that works. Millions of loans are closed monthly on SBA programs and in many cases, those clients would NOT have gotten financed any other way. Go to someone who has experience working SBA loans and you will have a much smoother process. Consider the SBA as a great alternative if you are having trouble getting financing. Remember-JUST BECAUSE ONE SBA LENDER DENIED YOU DOES NOT MEAN ANOTHER ONE WILL. 90% of my closed SBA loans were denied by another SBA Lender. I just took them to the right lender for them. SO IF YOU HAVE BEEN DENIED AN SBA LOAN, GIVE ME A CALL at 512-650-8630. I may just be able to finance you SBA anyway and do it in a timely fashion.