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SBA Loan Firm is our Subject to Investigate

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SBA Loan Firm is our Subject to Investigate

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  1. SBALoanFirmisourSubjecttoInvestigate.DavidTurkinOKToday.ThevalidityofSBAloansanarticleforourLA-Times1998-recap11-24BusinessChallengeaboutSBA-loansSBALoanFirmisourSubjecttoInvestigate.DavidTurkinOKToday.ThevalidityofSBAloansanarticleforourLA-Times1998-recap11-24BusinessChallengeaboutSBA-loans November1999–AftermonthsofreviewandinvestigationDavidTurkin“Talks”SBA7-aloanswhichweredevelopedtoprovidesmallbusinesses a governmentbackedguaranteesothatbusinessescouldobtainloansforabroad scopeofbusinesspurposes.Theseloansweredesignedforbothnewbusinessesandestablishedbusinesses. Itiseasierforestablished businessestoobtainloansbecausetheyareusuallylessriskandhaveaproventrackrecord. OneofthemisconceptionsisthattheSBAdoesnotissueloansbutprovides a guaranteetothelendingbank. ThefeesincurredrelatedtoSBAloansincludetwopointsclosingcostsplusothercosts that couldincursuchasaccountant costs,businessplanningcosts,loan packagingfees appraisalsorevaluationsaswellasothermiscellaneousfeesthatarechargedpriorto loanacceptance. AsaborroweryoushouldbeawarethattheSBAisgoingtoaddrestrictionstotheloanwhich include personal guarantees, collateral, and ability to future borrowings or indebtedness. Thetimeperiodforapprovalcan belengthy sinceyourrequest hastobe approvedbythebankorlenderaswellastheSBA. Likeanyloanrequest,pastcredit history(usuallyFICAScoreof700+),pastperformanceofdebtcoverageofatleast1.2 times. If you are acquiring a business or starting a business the rule of thumb is aminimumcapitalinjectionof30-35%oftheloanamount. Anypersonthathasmorethan 20% equity in the business must be disclosed and will have to provide financial information,collateralandguaranteetheloan. IfthebusinessdefaultsthebankandSBAwillgo after thecollateral. I do not recommend SBA guaranteed loans to my clients specifically because of the restrictions involved, thenecessarycollateral requirements,costsinvolved, covenants and restrictions onboth thebusiness and personally. The processcan take months andmonthsandmonthsfortheapproval andfunding. Business owners and business people are looking for results, they may not need immediateresults butstillwaitinginexcessof30 days+isthekissofdeathto manyfastmovingdeals.Conventionalandunconventionalloansformostbusinesspeoplehavea timelineattachedtothem.Ourclientscometouswithspecificgoalsandoutcomesand askingthemtowaitweekscanbeachallengesoaskingthemtowaitmonthsisnear impossible.Ourresourcelibraryforlendinginstitutionsislargeandwecanin mostcases giveourclientsarealisticfundingdateandifthatdateisnotmetitisusuallysomething our client ismissingatthemomentandnotthe institution.

  2. Weassistallourclientswitheitherpreparingtheirloanpackagefortheirbankorpreparing theirloanpackageandpresentingittoourlenders.Wegetthejobdone,callusifyouare seekingfundstopurchaseabusiness,expandyourcurrentbusiness,buildyourinventory orupdateyourequipment.Wecansecurerealisticfundingformostallyourbusiness needs and we arealways accessible.Call David Turkin 800490-8362

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