There will be 2,000 fewer small business loans issued by the SBA
Congress has not come to an agreement yet, so the President will issue an order for the sequester to go into effect anytime before midnight tonight. Sequester is the U.S. government’s $85 billion dollar automatic spending cuts that was put into law by the Budget Control Act.
Will the sequester have an impact on small business loans or SBA loans? You better believe it! It is said that the results of the sequestration will reduce the total number of SBA loans. These automatic budgets cuts will approximately result in 2,000 less SBA loans, which equates to $900 million dollars. So if your business was planning on applying for a SBA loan in the near future, you might find it more difficult in the coming months. Now is the time to look for alternate solutions as a back up plan.
Alternative business loans
It’s hard enough with the banks not lending to businesses, but with this bad news rearing its head, small businesses will find it even more difficult to find that small business loan. This is where First Capital Business Finance can fill that need for alternative business loans. With the wide selection of loans that are available to small and medium size businesses, it’s surprising how so many businesses are not aware of them.
About our working capital loans
We offer several loan programs for businesses; one of them being our small business loan. This loan is great for businesses that need working capital fast. It can typically take about 5 to 7 business days to get the funds into your business bank account. The credit score requirement is not as strict when comparing it to what the banks are requiring these days. These loans are mostly based off your gross income, and have very minimal paperwork. Another solution would be our business cash advance program. This one is based off your credit card transactions. Like our small business loan, the credit score requirement for this program is not as strict. The loan amount offered will be based off your historical gross credit card sales. There is no fixed payment for this program; the payment is based off a percentage of your future credit card sales. This is a great option to help with cash flow. Other programs are also available and can be found on www.FirstCapitalBusinessFinance.com.
If you’re interested in hearing more about our business financing programs, please feel free to call First Capital Business Finance 888-565-6692 and one of our loan experts will be happy to answer any of your questions.