LA Times: Small Businesses Need To Study Before Applying For Loans
Written by Ken Gaebler
Despite signs of hope in the economy, SBA loans continue to be elusive for many small business entrepreneurs.
While the economic news for small businesses has been more good than bad lately, the Los Angeles Times reports that it has been harder to get loans backed by the Small Business Association in 2011 than it was during the same period last year.
The paper said that businesses who have received loans said that preparation is key, as owners should expect to give an in-depth explanation of their business with multiple revisions of the application likely.
Barbara and Greg Gerovac of Anaheim, California, told the Times that before they received their $470,000 SBA loan, the couple had to write and rewrite their business plan to the bank's liking.
The U.S. Department of Treasury has been trying to provide small banks with money to lend to businesses. According to CNN Money, Congress set aside $30 billion for the Small Business Lending Fund from the Small Business Jobs Act last year. The funds were to go to banks with less than $10 billion is assets to lend to local area small businesses.
While the CNN Money story was not positive on the expected results of the boost to the lending fund, the final numbers remain to be seen.
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