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FM-08
Small Loans SCORE Chapter 570 |
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Small Loans for
Small Business |
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In today's market, because of the expenses involved, many banks and other sources of business capital are reluctant to make loans smaller than $50,000. Start-up capital from these sources is extremely rare. In an effort to alleviate this problem, the SBA and others have created some special programs. Several that are available in this area are: SBA LowDoc Loans: The purpose of this program is to reduce the paperwork involved in loan request of $150,000 or less. Under the LowDoc, the SBA uses a one-page application and relies on the strength of the individual applicant's character and credit history. The applicant must first satisfy all the lender's requirements. The lender may then request a LowDoc guarantee. To Apply: Approach your local
bank and inquire about their participation in the SBA LowDoc
Program. A complete Business Plan will be required. Service
area: Nationwide SBA Micro Loan: Under this program, short-term loans of up to $35,000 are made to small businesses for the purchase of machinery and equipment, furniture, inventory, supplies, and working capital. Proceeds cannot be used to pay existing debts. These loans are made through SBA-approved nonprofit groups, which also provide counseling and educational assistance. A Business Plan is required. To
Apply: Mr. Alvin Hill Phila.,
Connercial Development Corp., (215) 790-1401 Fax (215) Service
area: Loans for To Apply: Partners for Small Business Development, Inc.,
Contact: Linda Giordano (215)483-7450
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