Small Business Loans With Bad Credit

Betty asks…

Are people confused about what the bailout means? ?

Although the source of the problem came from Wall Street and poor mortgage decisions by unqualified home buyers, it now a American public problem. It has an adverse effect on EVERYONE.

The problem is that banks are unwilling to lend money to businesses because they need to keep liquid cash on their books to remain solvent due to the bad mortgages they are holding. When banks are reluctant to lend money, small businesses who often use short-term loans to make payroll, research & design, market, transport, etc. cannot get the funds they need to stay in business. As this occurs, jobs are eliminated and/or these businesses fail completely raising the unemployment rate and overall economic hardship for everyone. Anyone looking to punish Wall Street is misguided because only the behemoth corporations will be able to get the bridge loans needed to keep going. They will survive, it is the average small business owner (who creates the vast majority of US jobs) that will be hurt the worst.

Also, interest rates for new mortgages to qualified borrowers will go up, further pushing the housing market down and creating even more defaulted mortgages. A snowball effect occurs and credit markets get even tighter and more businesses fail.

Unemployment will be rising, while the number of new jobs for the unemployed to fill will be getting smaller. As unemployment continues to rise, households will be left without incomes and begin to default on other lines of credit such as car loans and credit cards. Again, the snowball continues.

Since disposable income will decrease because of the unemployment numbers, the economy will continue to suffer because people will start to hoard cash instead of fueling the economy with spending. More businesses will fail, and so on.

People not in the work force with retirement savings will find their portfolio values decimated, perhaps postponing retirement or making it impossible altogether. Again, creating an influx of people into the job market where there are no jobs available.

Anyone in Main Street USA who does not believe this will not affect them are naive. the Wall Street you are mad at has already failed and has been restructured. Get over it.
The bill includes: Periodic payments, not a $700 lump sum. Congressional oversight of the Treasuries’ actions. A bump of FDIC from $100,000 to $250,000. Elimination of golden parachutes. Taxpayer equity (ownership) in participating companies with preferential debt recovery/profit going the taxpayer vice shareholders. A tentative timeline for government removal from the market.

Myths: Its a blank check, there is no oversight/puts one man in charge, etc., credit is not important to the US economy and veryone should pay cash. Wall Street will be the only one to suffer. It will pay irresponsible homeowners’ mortgages. It doesn’t help the average American. Government involvement harms the free market (history has shown that government is sometimes necessary. ie the Great Depression).
Also included: An insurance option to back the questionable securities giving them marketability and more easily obtained market value.
Keep in mind, there is a consensus that tighter regulation must be passed, but due to time sensitivity it will be addressed at length after the bailout.

admin answers:

Not so much confused as uninterested in any facts that may oppose their dogged view that they will not accept any solution that costs them money. The fact that it is costing them right now, they refuse to believe. They will not tolerate anything that disrupts their rapacious appetite for more and still more. They refuse to be evicted from their fairytale existence.

Robert asks…

how can i get a small business loan with bad credit and no bank account,i already have a business plantogether

i have the web site already up and running i could do so much more with a loan of 10,000 to 25,000 dollars.a short term loan like 90 to 180 days

admin answers:

SBA or any bank will not lend without at least a decent credit and a 100% collateral.

SBA does not lend money, but guarantees the loan for the lending banks. However, they are usually asking for 100% collateral.

For that amount of money, you can try your family or friends, or use your credit card of Home equity.

It will be a tough sell with poor credit, but if your idea is good, they might go for it.

Good luck.

Joseph asks…

Question About College for a 40-Year-Old Female…?

Bear with me, this is a bit lengthy.

I am female, nearly 40 with family, especially 76 year old father coaxing me to pursue a college degree to land “secure employment” with benefits.
Let me shed a little light with regards to my particular situation. I reluctantly graduated high school in ’88 *wishing I’d repeated that year citing personal reasons* and, with the persistence of both my parents, began that fall in community college, randomly choosing a major to 1) get my parents off of my back and 2) declare a major just for the sake of declaring a major.
My grandfather put away money since the time I was a baby in the stock market for my college, but I used it to fulfill transportation, living expenses and a trade school instead *I had always wanted to be a barber — since the age of five* This, not surprisingly, was an unacceptable aspiration and, several years later, continued to be coaxed to finish a four-year-degree. This time, not only by my grandfather, but also my father and my younger brother and his wife.
To make an insanely long story short, I spent those 20+ years traveling, barbering *for 15 years total*, working in various administrative positions in various industries and had a blast, along the way, doing so. There’s one drawback: I have an extremely tiny retirement *my fault*, no benefits other than health insurance through my ex *not that I consider THAT a benefit — more so a necessity* and some of the best income produced of any field I worked in in the barbering industry, $6000/mo, to be exact. Not too shabby.
Still, the barber *out of work, currently* that I am, and the part-time entrepreneur *in another field* that I’ve become, my family still hounds me about that four-year college degree.
Now, I am no dummy. I can do math *citing reasons to be diswayed by bloated interest rates for student loans* and I know my personality. The biggest problem with regards to attending college or, shall I say, the biggest problemS with regards to attending college right now *for my personal situation* are the following:
– I cannot sit still through classes, much less sit still through four full years, more if I need to go part time.
– There’s not one major in college that I care to pursue. Not ONE.
– Not that I have anything against them, nor do I realize that all fall within this category, but I don’t want a white collar position. No offense to white collar workers. My whole family is white collar. I am the only one who isn’t.
– I can do math. I am not stupid. I know what I would need to repay for student loans after private, public or community colleges. I shudder with the thought of even having a debt of $5000. I don’t have credit card debt. I don’t own a credit card *my wisdom*. I have marginal medical debt *thank you, knee surgeries and asthma issues!*, but that only totals an amount in the ball park of $2000 — manageable, comparitively speaking. I don’t wish to repay loans once I hit the age when I begin drawing social security. I don’t qualify for a grant — still *legally* married, and I don’t qualify for academic scholarships, grades aren’t good enough, thanks to my high course withdrawal rate and F’s for failing to withdraw courses once I unofficially dropped them back in the late 80′s.
– I want to own a business when the opportunity arises and don’t see it as a possibility by taking out student loans. There’s no such thing as good debt/bad debt. It’s ALL debt and I’d rather be debt free once the time permits to apply for a small business loan.
So, there yo

admin answers:

You obviously don’t want to go to college. You need to be the one motivated to do it otherwise you’ll just end up failing out and being unhappy. Why don’t you pursue opening a barber shop?

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