Your Questions About Sba Loans

Robert asks…

SBA loans-?

I am looking to open a small biz and am going to try and work with my local SBA- WHAT ARE THE QUALIFICATIONS?If my cedit score is not that great can you give me some ways to build it up?Is there help w/ minorities- such as single mothers to get help? I heard there was

admin answers:

No SBA lender will talk to you unless you provide them with a valid business plan. Go to , or for sample business plans and instructions on how to write a business plan.

Then, go to and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you.

SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.

Helen asks…

Are SBA loans the only loan a bank will give out for a small business?

I would like to know if bank give out loans to buy small businesses or do have to get a SBA loan?

Thank you

admin answers:

How big of a loan? If it is under $30k you can try Prosper – an online lending community…


They are not some shady loan shop- and they have been featured in the New York Times, Money Magazine, etc.

I first read about them in Money magazine – pretty cool idea, people get together and combine their money as a community into making a single loan.

I have used them for a loan to start a small website (and pay down some high paying interest)- you will have a much better chance of getting a loan than with a bank – and probably at a much lower interest rate.

Right now I am paying 10.5% on a 15k loan- not too bad IMO. You can take loans out for up to $30k I believe.

Make sure you make out a nice profile, and come up with a fun/interesting/sob story background to make yourself look trustworthy – it will help you improve the chance that people will bid on you (oh and a photo always helps :-) )!

Try to join a group as well – it can help lower your interest rate. Don’t forget Prosper checks out your credit history, so you won’t be eligable for lower interest loans unless you have a great background – but you can always take a higher % rate, it will probably still be lower than a bank loan (if you could get one…).

Even if you have bad credit what you will get from the Prosper community will likely be much lower than you
will get elsewhere – and it will be a secure, safe loan – not some underhanded ‘get hit with 50% suddenly’ loan shop!

You can also loan out money to help others on the site. Not only will you make a pretty good return, but your risk is fairly limited- and you can screen each applicant and choose which people you want to lend to- I have not done this yet, but I like the idea..

Good luck!

John asks…

Can you use SBA Loans for aquiring 50% of an existing business?

I am interested in purchasing 50% of an existing business. I cannot find information on the website that directly answers this question. I read the SBA loans can be used to purchase an existing business, but doesn’t say anything about half of an existing business.
Honest answers and helpful feedback is apprecaited!!

admin answers:

Several factors are not disclosed.
Best avenue is to find a lender that is approved for SBA loans in your area.
You should try to acquire your portion without the SBA (saves a little interest). They will determine your 5 C’s of Credit (Character, Capacities, Conditions, Capital, and Collateral ).
SBA helps you if you are a little short in one of the areas.

Also ask about Express loan options, several programs available that the lender can offer a qualified candidate.

SBA advantage is up to 50% of your loan is guaranteed repaid to lender.
One important thing for you to remember is that —- you are 100% liable to repay the full loan. Any percentage of guaranty to limit the lender’s loss does not apply to you, the borrower.

I used a SBA Business Development Specialist to answer my initial questions (similar loan questions and I wanted a line of credit) it all directs you toward the lenders.
Good luck in your venture.

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