4.
Re: How can I get funding???? Jun 25, 2009 10:12 PM
Jeannine22,
Funding is the toughest question it seems. I have worked in financial services and lending or 8 years. In all of my short eight years in lending, I have never seen the funding resources available to the SBA that are availabel now. You should google the "SBA CDC" in your area or do a search for "S.C.O.R.E.". Traditionally, SBA was known for it's mounting red-tape. Now that the lending world has been flipped upside down, the SBA looks like an ice-cream sundae.
There is a special loan called a SBA 504 loan that has recently found some new "leniencies" and cheaper rates. The good news is they WANT to lend you the money.
A CDC or Certified Development Company takes a Pool of investors for a certain area. They meet and decide to lend money to SBA participants. Their money gets put along side an SBA selected Bank and 2 loans are made.
Typically the breakdown looks like this: Loan $200k = Bank 1st lien @ 50% LTV (loan to value) | SBA 2nd lien @ 40% LTV | YOU 10% Down (skin in the game).
The rates are really low (comparatively speaking right now).
The deal is SBA 504's are for fixed property or real tangible property. No Silicon Valley Ideas here. This is for land, buildings, equipment, expansion, etc. check out sba.gov for your local CDC.
Hope this helps!
