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One Of the major barriers for today’s small business is access to the capital that is necessary for growth. Without adequate financing, many small businesses are prevented
from purchasing equipment, inventory, or real estate. Or, they may lack the working capital to pay employees and their utility bills. As a small business, there are various sources of financing to consider: savings, friends & relatives, banks & credit unions, and venture capital
firms. When pursuing financing from banks, lenders are primarily concerned with the ability to repay the loan. To evaluate a loan request, the following criteria are thoroughly examined: credit, collateral, cash flow, character, and market/industry conditions.
Often times, a small business does not present the optimal mix of criteria to qualify for a traditional bank loan. To address this common occurrence, the federal government, through the SBA, has established numerous loan guaranty programs. These programs provide a key source of financing
for viable small businesses that have true potential. SBA guaranty loans are made by private lenders and are guaranteed up to 85% of the loan value. SBA loans are made available through intermediary organizations and are financed by commercial banks. The North LA SBDC is an intermediary
organization that provides advisory and loan-packaging services to assist small business owners though the lending process.
The North LA SBDC is a leading intermediary for various SBA loan programs, such as the Prequalification, SBA Bank of America Express, and the SBA Microloan programs. The SBDC’s team of loan consultants provides lending guidance and loan packaging services at little or no cost. Loan
consultants will meet with a business owner, analyze their ability to qualify for a business loan, and help determine what loan program is most suitable. If appropriate, the consultant then will assist the business in meeting loan requirements and packaging the loan. The SBDC’s Rover
program provides outreach lending assistance to businesses all over Los Angeles and Ventura County. The Rover program specializes in the SBA pre-qualification loan program, but can serve as a referral source for other loan programs, such as the SBA microloan, the SBA Bank of America Express
loan, and 7(a) loans.
For more information on the Prequalification loan program, click here. For information on the Microloan program, click here.
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