Obtaining Startup Micro Loans In A Tough Economy-xhero

Finance In the current economy, banks have been very reluctant to make small business loans, especially to those seeking to start up a business. Bank reluctance to make such loans has been one of the major causes of the slow recovery from the recession, and hopefully, such loans will increase with the improvement of the economy. Fortunately, there is the Small Business Administration (SBA). It has as one of its purpose to make sure that small businesses get the micro loans that they need, both for startup and continuing business functions. A startup or small business is going to need those loans in order to focus on long term planning and to make sure it can handle payroll obligations before it really gets rolling. The SBA is appreciative of the fact that a business needs to pay its employees and make sure that those employees have an opportunity to make a living wage. This is why the micro loans can be quite vital. The micro loans can grant a small business up to thirty five thousand dollars or more in order to make sure that it can operate with a reasonable chance of success. The SBA has been able to give loans that most banks have not been willing to make. Many small business owners have been unable to obtain startup loans from traditional banks. Fortunately, there are groups like the Opportunity Finance Network, which can also help people find different networks and people within the SBA purview in order to secure a micro loan. Although many people do not generally think of small family farm as a business, it nevertheless is. A micro loan for a small farm can also be necessary, let us say, to buy a tractor or other farm equipment. Now just because a business is small does not mean that it automatically deserves a startup micro loan. You have to convince the SBA that the prospects for the success of the business are good and that the loan will help assure that success. The paperwork involved with an SBA loan can also be overwhelming and discouraging. The loan guarantee program offered by the SBA offers a lot of hope for aspiring business people who may have a good idea for starting a business. So while the banks are reluctant these days to make startup loans, we will have to look mainly to the SBA for startup micro loans. Copyright (c) 2011 Sandra Tiffany About the Author: As a small business owner herself, Sandra Tiffany is most appreciative of startup micro loans. Her site covers micro loans and how to get them, payday loans, cash advances, personal loans, books and "Deal of the Day" opportunities. .www.startupmicroloans.com Article Published On: ..articlesnatch.. – Finance 相关的主题文章: