Well my dear friend there are many rules & regulations operating related to small business loan, but overall you need to keep your credit history better, to accessed to business loan by any financial institute, Also you can follow SBA for further clarification & details on these.
Ahhhh, thats what makes it so frustrating, my credit is excellent, it's just like so many self employed people I write everything off, so my tax returns show almost no income. Now of course my bank statements show the real picture, but the new Dodd/Franks rules make things really difficult for self employed people.
Bankers will blame the vagaries Dodd/Frank and the Consumer Protection Finance Bureau in a pathetic attempt to keep you as a checking account customer. It is a feeble way to say, “don’t blame it on me.”
In reality, neither rulings nor agency has much to do with using a home as a vulnerable piggybank to finance a small business or a plunging credit score from maxing out credit cards.
More to your question about the “rules” for getting a small business loan; the answer is, it is much more difficult than getting a home loan. You will need a higher credit score, substantial cash flow available to pay the proposed debt service and collateral.
The not-so-easy solution is to focus on making your business great and paying off your home equity loan and credit cards. Small-business lenders want personal FICO scores in the 700-750 range.
Neil, if it were easy, everyone would be an entrepreneur. Hang tough and don’t give up!
Former entrepreneur, commercial mortgage banker & business lender
Currently, commercial real estate & business columnist & content blogger
SBA's 2006 national "Journalist of the Year" winner
In years gone by one of the most common ways small business got extra money to expand, or to pay off existing high interest debt, was an equity line against their home. Now, in this post "Dodd Frank" world things have changed, and not for the better.
Like so many self employed people, I have maximized my write offs for over 15 years, so when recently I tried to tap into the over $250k of equity in my home to pay off business credit card debt I was turned down thanks to the new Dodd / Franks rules.
So my question is, are small business loans subject to the same rules, or are there other programs just for business owners.