Business Funding For Small Businesses

Business Funding For Small Businesses – With the recent passage of a $2 trillion stimulus package, small business owners impacted by COVID-19 have options for low-interest loans, financial aid, and other support to help them through these uncertain economic times. In addition to this stimulus package, several private, state, and local institutions have also stepped up to provide support, assistance, and loans to small business owners suddenly facing unforeseen challenges. With a number of different options popping up, small business owners may be asking themselves, “What options am I eligible for?” and “Which financing option is right for my business?” To help business owners and entrepreneurs looking for financing options, we’ve compiled a list of public and private small business opportunities. National Financing Resources for Small Businesses Small Business Administration The Small Business Administration is a federally funded organization that provides loans, debt forgiveness, and other financial assistance to small businesses with 500 or fewer employees. Currently, the Small Business Administration oversees small business loans from SBA-approved lenders, such as banks. Although the SBA does not lend money directly to small business owners, it sets guidelines for loans made by its lending partners, community development organizations, and microlending institutions. This process reduces risk for lenders, which in turn allows more small businesses to receive loans. Source Here are some examples of loans coordinated by the Small Business Administration: Paycheck Protection Program This program provides low-interest loans of up to $10 million funded by the recently passed CARES Act. These loans are intended to prevent the economic recession of small businesses affected by covid-19. The program helps business owners pay employee salaries, mortgage payments or other major business expenses. According to the SBA website, up to 100% of the loan is forgivable and partial forgiveness will be granted if all employees remain on the payroll for eight weeks or more after the business receives the loan. Financial Assistance for Damage Loans As part of another emergency preparedness law, small businesses affected by COVID-19 can apply on the SBA website for a low-interest disaster loan of up to $2 million. Applicants will receive a decision on their loan within three days of applying. These low-interest loans will have a repayment term of up to 30 years, which the lender determines on a case-by-case basis. The interest rate on each loan will be 2.75% for non-profit organizations and 3.75% for other small businesses. Standard 7(a) Small Business Loans The 7(a) loan program is the SBA’s flagship small business program. Terms, such as the collateral percentage and the loan amount, vary depending on the type of loan. These small business loans are often used for minor startup costs and are not related to emergencies or disasters. The 7(a) loan is typically between $350,000 and $5 million. Lenders are not required to accept collateral for loans up to $25,000. For loans over $350,000, the SBA requires the lender to accept as much collateral as possible. This collateral may include fixed assets, business assets, or real estate of a company. Express Small Business Loans Express loans are similar to 7(a) small business loans in that they are up to $350,000 and require collateral from the lender. The main difference is that applicants will receive a decision and payment within 36 hours of applying for the loan. Like other SBA loans, the lender determines the eligibility and terms of the loan. For more urgent loans, exporters can apply for an Export Express loan. Applications for these loans, which are capped at $500,000, will receive a response from lenders within 24 hours. In addition to the loans mentioned above, the SBA also offers assistance to veterans, businesses that require short-term seasonal loans, and small businesses that need loans for international trade purposes. You can find more information about the SBA standard loan program here. On the SBA website, you can also find information about SBA lenders. While the SBA primarily provides loans, the administration also works with organizations to provide grants to businesses in certain areas, such as scientific research and development and exports. Information about these specific grant opportunities can be found on the SBA grants page. Grants.gov Grants.gov is a comprehensive website that informs grant applicants about funding opportunities and allows them to search a huge directory of federal, state, and local grants from a variety of organizations. While anyone can use the site to find grants for many different purposes, small business owners can filter grant searches that directly relate to their business or industry. While there are thousands of grants that can be searched in this database, it’s important to note that many of them focus on nonprofit, health, education, or public service organizations. Additionally, many of the grants offered come from organizations funded by the federal or state government. This means that some small for-profit businesses may have a hard time finding grants related to their field. Private Assistance and Lenders In the coming months, many private banks will offer assistance or special financing opportunities for individuals or small businesses. Here’s a brief rundown of businesses with temporary assistance or ongoing small business loan programs: JPMorgan Chase Small Business Pledge In light of COVID-19, JPMorgan Chase has pledged $2 million to its nonprofit partners in worldwide and $8 million to “help small businesses exposed to significant financial hardship in the United States, China and Europe.” The banking company says it will work with community development financial institutions around the world that will provide low- or no-interest loans and interest-bearing purchases to homeowners. JPMorgan Chase will also seek to financially assist those who have benefited from its Ascend and Entrepreneurs of Color funds. Along with the support mentioned above, Chase and JPMorgan are SBA-approved lenders, which means they offer many of the SBA’s low-interest loan options. They also offer real estate, equipment and business financing to small businesses. Small business owners can also apply for short-term loans of up to $5,000. These loans have fixed or adjustable interest rates and can be repaid in one to seven years. TD Bank Loans and Lines of Credit TD Bank offers lines of credit, loans, mortgages and equipment leases to small businesses. According to TD, lines of credit are best for borrowing from $25,000 to $500,000. However, larger lines are available for commercial businesses. Interest rates vary depending on the credit limit. When you return the money, the credit beneficiary has the option to pay against the total limit of the credit or only pay interest. When it comes to loans, mortgages, and equipment leasing, TD Bank says it can lend up to $1 million to small business owners. Similar to lines of credit, larger loans are available for business enterprises. Like many other financial institutions on this list, TD Bank is an SBA lender and also claims to offer competitive interest rates. Capital One Capital One is also an SBA approved lender. In addition to SBA loans, Capital One also offers business installment loans. These loans are term loans of $10,000 or more. According to the Capital One website, the loans require monthly payments with a maximum repayment period of five years. The company also helps small businesses consolidate debt so they only have to pay one lender each month. Wells Fargo Small Business Initiative According to a recent Wells Fargo press release, the banking chain will soon offer resources to meet the urgent needs of small businesses impacted by COVID-19. As part of Wells Fargo’s initiative, the institution will dedicate $2 million “to deploy flexible capital in partnership with the Opportunity Fund and will also provide immediate cash increases and financial advisory support to entrepreneurs and their low-wage workers in coordination with SaverLife “Aside from the initiative mentioned above, Wells Fargo offers three types of loans: unsecured business loans, Equipment Express loans, and an extension loan. The first two loans are intended for projects or specific purchases. The loans can be for an amount between $10,000 and $100,000 and have repayment terms of one to five years and two to six years, respectively. The payday loan is a $100,000 to $500,000 working capital loan that requires business assets as collateral. The banking institution also offers lines of credit between $5,000 and $100,000. Interest rates vary by line. No collateral is required for these lines and all businesses that use them are automatically enrolled in the Wells Fargo Rewards Program. For larger businesses, making between $2 and $5 million a year, Wells Fargo also offers a Prime Line worth between $100,000 and $500,000. BlueVine BlueVine is an organization that provides loans between $5,000 and $5 million to small businesses . Interest rates for loans and lines of credit start at 4.8% and vary depending on the type and size of the loan chosen. The company offers three specific types of loans: Lines of credit up to $250,000 with no payment penalties. term loans of up to $250,000 and invoice factoring, a specific line of credit for invoices, of up to $5 million. To apply for a BlueVine line of credit or loan,

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