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Help! Need Suggestions On Finding Small Biz Loan
Self | 31 August 2010 | Windflier

Posted on 08/31/2010 12:58:01 PM PDT by Windflier

My wife and I recently shot our wad on some high-grade advertising, in a desperate bid to resurrect our (formerly successful) small construction business.

That advertising is suddenly producing new leads better than we ever imagined it would. Our phone is literally off the hook. We're being inundated with calls for our services, and are scrambling to answer them all.

Trouble is, we're in no position to properly service all of this sudden demand, mostly due to the lack of some basic equipment, and a fully operational crew.

Finding the qualified labor is no problem, but to produce the product that is most needed and wanted by our customers requires specialized equipment that would cost us somewhere around $10,000 to purchase.

Our business was in a state of affluence for about ten years before it stuttered and failed some four years ago. Since then, our personal credit has dropped to below 600, so we're nervous about applying for an equipment loan through conventional sources.

I would very much appreciate any suggestions or info regarding SBA micro loans, or any other leads to sources of capital for small business expansion.

If my wife and I can find the money to do this, we'll finally put our business back on the map, and recover the life we once had.


TOPICS: Business/Economy
KEYWORDS: businessloans; investment; sba; smallbusiness
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To: Windflier

Does the company that has the equipment you need have some affordable purchase options/plans for you. They want to sell it to you, so let them help you on the finance side of their unique equipment. Leasing, installment plans for them should be easier if they are a bigger company.

The truck should be something that you could rent. Banks are very tough to deal with now unless you have a long term relationship with one.

Credit cards are a very dangerous option, like the previous poster said, if you use them pay them off quickly.

Good Luck, I believe you can do it. Don’t take NO for a answer when you have a gut feeling that tells you that you can. Your gut is telling you the truth.


21 posted on 08/31/2010 1:48:52 PM PDT by mtngrandpa (Self employed people have the greatest bosses. Everyone should be in business for themselves.)
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To: Windflier

Contact your local Small Business Development Center (SBDC) for SBA loan info.

Can you sub out the part of the work that requires the specialized equipment?


22 posted on 08/31/2010 1:54:44 PM PDT by Kipp
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To: PGR88
Nervous? But you've got to try it anyway, assuming you have nothing to hide. Most small or regional banks really like SBA loans - they can get guarantees for up to 90% of the value from Uncle Sam. $10,000K is not a large amount either.

Perhaps "nervous" was the wrong word to describe how we feel about trying conventional sources. We no longer look good on paper, so we're not very confident of being able to qualify for bank loans today.

The last time we looked into getting an SBA loan, we were in our first year of business. At that time, their lending was based upon your personal credit, of which we had none. It was a dead end road for us.

We wound up building our business the hard way, but in the process, we became successful and affluent enough that we didn't need government loans to operate, or to expand. Funny Catch-22, that.

Today, our credit is crashed, and we have no assets for collateral. Just fifteen years of experience in the business and the know-how to build it all over again. I don't know if that counts for much with loan officers.

Thanks for throwing a ray of hope my way, though. I'll roll up my sleeves and wade into the bureaucratic maze again.

Much appreciated.

23 posted on 08/31/2010 2:01:20 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: Windflier

I’ve not used this group, but it appears some have:

http://www.prosper.com/


24 posted on 08/31/2010 2:03:06 PM PDT by Zman (Liberals: denying reality since Day One.)
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To: Windflier

No you have to go through a local bank that is working with SBA who guarantees the loan. You have up to 6 yrs to pay back.


25 posted on 08/31/2010 2:04:38 PM PDT by screaminsunshine (m)
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To: Windflier

What part of Texas are u in?


26 posted on 08/31/2010 2:13:52 PM PDT by isthisnickcool (Sharia? No thanks.)
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To: isthisnickcool

How much $$$ do you need?


27 posted on 08/31/2010 2:16:18 PM PDT by isthisnickcool (Sharia? No thanks.)
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To: isthisnickcool

I’m in Collin County, just north of Dallas.


28 posted on 08/31/2010 2:30:17 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: Windflier; screaminsunshine

>>SBA Backed micro loan. Up to 35k for 6 yrs. Check online for a local bank.<<

You can go with no payments for 18 months but the loan MUST be paid off in 5 years or else they will come after your assets.


29 posted on 08/31/2010 2:32:46 PM PDT by B4Ranch (America was founded by MARKSMEN, not Marxists.)
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To: JrsyJack

Thanks for the good suggestions, Jack. I’ll be reviewing all of the good tips on this thread over the next week until we find a solution.

Much appreciated.


30 posted on 08/31/2010 2:34:16 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: DJ MacWoW

Thanks, DJ. I appreciate the prayers.


31 posted on 08/31/2010 2:35:31 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: mtngrandpa
Does the company that has the equipment you need have some affordable purchase options/plans for you. They want to sell it to you, so let them help you on the finance side of their unique equipment. Leasing, installment plans for them should be easier if they are a bigger company.

That's a very good question. I hadn't thought to ask, because of the nature of the equipment distributor and my trade. I'll do that tomorrow.

Thank you.

32 posted on 08/31/2010 2:42:17 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: Kipp
Contact your local Small Business Development Center (SBDC) for SBA loan info.

Thanks for the lead. I'll do that.

Can you sub out the part of the work that requires the specialized equipment?

Not really. The best arrangement I can work with another contractor who has the equipment, is to pass the jobs along to them, and take a small commission. Not really ideal, and those small commissions won't pay the bills.

Contractors these days have had their profit margins squeezed to the breaking point by the downward pressure on prices that illegal labor brings to the market. It's put most of us in a position where there's just enough meat on the bone to get the jobs done and make enough to feed our families.

Just one more reason why we've got to beat the liberals and the Obama regime on illegal immigration.

33 posted on 08/31/2010 2:50:02 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: B4Ranch

K. Sounds like a good deal.


34 posted on 08/31/2010 2:51:54 PM PDT by screaminsunshine (m)
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To: screaminsunshine
No you have to go through a local bank that is working with SBA who guarantees the loan.

I did not know that. I'll start with a phone call to our bank tomorrow.

Thanks.

35 posted on 08/31/2010 2:52:24 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: Windflier

I am too retiring from Merchant Marine and want to start a fishin Biz in Kona Hawaii. Got the boat and all licenses but need to get the shipping.


36 posted on 08/31/2010 2:56:58 PM PDT by screaminsunshine (m)
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To: isthisnickcool
How much $$$ do you need?

We can get a basic used rig together for about $10,000. For $20,000 we could get a new machine with the proper accessories and a used box truck to haul it in.

If we somehow qualified for the $35K SBA micro loan, we could do much more, including even better advertising.

37 posted on 08/31/2010 2:57:13 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: Windflier

Explore free money at grants.gov or here http://www.google.com/gwt/x?wsc=yq&wsi=bdceabc375ebcedd&source=m&u=http%3A%2F%2Fwww.sba.gov/jobsandcapital&ei=w3t9TK8Los7BBZ2smPoO


38 posted on 08/31/2010 3:11:19 PM PDT by goseminoles
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To: goseminoles

Thank you for the link, FRiend. I’ll check it out.


39 posted on 08/31/2010 3:45:48 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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