How can small businesses, was denied SBA loan program

8 Oct

Posted in Business by admin No Comments

Many small business owners are disappointed, small business loans, and credit application was rejected under the Small Business Administration bank's U.S. Securities and recovery. According to Luobomande Erbao Mu was written in August, 2009 The New York Times edition of 12 – line, "the article of the plan is to have a slow start." It appears that most banks are unwilling to loan application and approval small business credit. Mandelbaum pointed out that the Small Business Administration plans to 2.55 million U.S. dollars to give up enough to make 10,000 small business loans up to $ 35,000. However, two months later, the project began, only 1127 small business loans and credits to be released, a total of 36 yuan. 8 million U.S. dollars. The source said the bank is very keen to participate in small business management program, which provides loans and credits to small businesses would not be very profitable for them. Paul Merski,. Independent Community Bankers of the United States Trade Association's chief economist, said: "We have a lot of profit motive, to $ 35,000 loans for more than 6 years of tension." Bob Seiwert central commercial loans and commercial banks in the American Bankers Association revealed that, due to stricter lending standards, providing loans and small business credit more expensive. Banks also find more ways to restrict access to credit restrictions, the U.S. Congress to approve loans and credits to small businesses. According to the U.S. Congress in order to be eligible for loans to small business management, small businesses must be sustainable in the fighting. This means that the company should account for income, such as a decrease of 20 percent, "the present economic difficulties. However, the company must have at least two years to show the first two years of a positive cash flow. You should be submitted to two years cash flow projections indicate will be able to afford loans. because of the restrictions the United States Congress, the banks are more likely to come from existing customers, the approval of loans and credits for small businesses. Merski said: "In the economic field, this is really a loan , has the significance of existing customers. Will not have a lot of resources to make a very expensive underwriting. You know business. "Who in support of small enterprises have been very disappointed. An example is the Alex Cooper, who is a Pima Community College Small Business Development Center in Tucson consultant. He said he had about 30 loan applications of small business owners to help but not approved. "This is a disappointment. I believe that the banks will be more interested in the community, and try to help small businesses, "he said. When the loans and small business credit application is rejected, the banks in U.S. securities, owners of small businesses still do not choose to resume, according to Small Business Administration. they can use their credit card services for small business loans and credit equivalent. credit card customers to accept credit cards or personal, by debit card online or phone payment. who have installed a certain minimum average monthly sales of qualified applications for credit card customers cash advances for small business loans and credit. Payments will be deducted from future credit card sales. If you do not need to have a small business with loans and the banks who refuse to join the Small Business Administration for small business loans of trouble. interest-free loan you need The trouble, small business credit card instead.