SBA Loans for (Small) Small Businesses
I’ve blogged a lot lately about the new larger SBA loans – especially the new $5 million limit for the 7a loan program. The 7a is such a useful program since it can be used for commercial real estate, working capital, business debt consolidation, etc., but most lenders prefer to do larger loans since the “man hours” involved in processing an SBA loan can really add up and the smaller loans are dramatically less profitable. (Can’t really blame the lender’s for having that focus).
There are however, SBA-backed (small) small business loans for those who just need some cash to get their business rolling.
So, if you are feeling left out with all the BIG talk, then you might want to take a look at some of the SBA’s other programs as you may find what you need.
I really don’t know much about these programs – just that they are available – but I get the sense that they are largely overlooked and there does not seem to be a lot info about them online.
Here are a few links to try:
SBA Express Loans – Including SBA Community Express Loans and SBA Patriot Express Loans
Ironically, the loan limits for these programs have also been increased lately, so you can now get a $50,000 “microloan.”
If all else fails and you are unable to find a small loan for your small business, you might want to take a look at “peer to peer” lending sites likes Prosper.com or Lending Club. I’ve never used them, but I have heard some good things about them.