Comments on: When banks say no: 4 alternative funding sources

By: Mike Harden

Mike Harden — Tue, 18 Aug 2009 23:34:52 +0000

We have been working on funding for well over 1 year and with one of the leading underwriters for the SBA for 6 months and now. I am being told the amount I want is too little for the banks to consider for the 504 or 7A even though it would include purchase of property we operate from, (No a commercial loan with 30% down is what the bank suggest). The sad part of this is the same bank making this crazy suggestion I owe a credit line that will go term in March of 2010 and they don’t even seem to think that could be an issue with the slow recovery?
I believe I have discovered where they now send the mentally deranged as there are no institutions available to them any longer.
If you are not looking for 1 to 3 million dollars they don’t want your business. Even if it started in 1966 is a risk now days because it could fail (with this kind of run around yes it could fail).
Now how is it a company that feeds 6 families and supports a town of 17,000 needs with business direct services not considered a small business? We even offer services that the government is thinking about cutting back on and what is currently offered from our Post Office in our town does not even meet our need for PO Boxes alone.

By: TCMike

TCMike — Sat, 15 Aug 2009 00:24:39 +0000

Banks make all the rules when it comes to the SBA Program. SBA pays lip service and leaves us to their mercies even when the Fed backs them–Banks still want that guarantee plus our own dollar for dollar collateral. It is shameful. MY Bank, one of the larges to get bail out billions, flat told me that even if I am awarded a federal contract worth millions over 5 years, they will not fund any part, stating, and I quote the bank officer ” we dont want any part of the federal market”.
Also, just had another large bank come to me offering immediate help with Am Recovery Act $, then turn around 24 hours later and say they opt out, because there is too much paperwork involved with Feds. The SBA and the other Fed offices have totally failed the small business community.

By: Michael Archbald

Michael Archbald — Fri, 14 Aug 2009 12:22:44 +0000

We’ve been trying to secure a $200,00 loan from a local bank with 90% backing from SBA. We have been jumping through hoop after hoop and each time the closing looks ready to schedule they ask for some other method to assure they will get their 10% if we fail. We have been open for ten years now and this process might take us well into our second decade.

By: Tammy C.

Tammy C. — Fri, 14 Aug 2009 09:30:56 +0000

Roger, there are many ways and I happen to be a conference today that is speaking to that very topic, in particular as it relates to the construction industry. Go to http://www.smallbizmatchmaker.com and send me an email

By: Michael Davis

Michael Davis — Thu, 13 Aug 2009 21:10:54 +0000

We were looking for an SBA loan to expand our inventory as our business is only 9 months old but very profitable. The banks we approached for SBA all said we needed to be in business for 2 years with audited tax returns. Who is actually getting ARRA loans?

By: Anthony G

Anthony G — Thu, 13 Aug 2009 19:23:01 +0000

We had to get a micro loan of $12,500 to make ends meet. It was not untill we got to the closing table that I found out it was at a rate of 22% plus the interest is frontloaded like a mortgage.
We are now aquiring an ARC loan that is interest free to cover our outstanding debts.
I am just amazed how bad the economy and spending is right now.

By: Roger Jones

Roger Jones — Thu, 13 Aug 2009 18:09:03 +0000

Due to restrictive lending practices of banks at this time, would their be other aveneus of gaining financing for owners on construction projects? Also, at somewhat competitive rates compared to other banking institutions? Any ideas?