In the March 2017 issue of Franchising World Magazine, Dallas Kerley, Benetrends Financial Chief Development Officer authored an article titled “Issues Impacting Small Business Funding in 2017”.
As you begin your journey to own a small business and finally realize your dreams of entrepreneurship, the effort to secure funding for your startup may seem daunting. While the thought of finally getting your business up and running is exciting, the time and energy that goes into knowing how to fund your business is enough to leave the most passionate entrepreneur a little shaky.
But, your excitement doesn’t need to wane during this process.
A big sigh of relief is in order for entrepreneurs now that the SBA Shutdown Crisis of 2015 is over and lending can resume for the SBA’s flagship 7(a) program. As of July 27, 2015, Congress has officially raised the lending cap for the program by $4.75 Billion, to $23.5 Billion. This follows a suspension on July 22 when the SBA announced it reached its 2015 Loan Guarantee Program limit of $18.75 billion two months short of the governments fiscal year end (September 30).
How Will The Government Shutdown Affect SBA Loans?
One of the most popular questions we are asked by entrepreneurs interested in getting an SBA loan is, "What are my options for securing the money needed for an SBA loan?"
The SLA program is a delivery vehicle for SBA guaranteed term loans. In June 2012, the SBA revised portions of the SLA program making the application process even easier, expanding the number of qualified lenders and increasing the loan cap from $250,000 to $350,000. Pre-screening tools and streamlined documentation enable lenders to offer faster and more cost-effective SBA 7(a) loans to business borrowers.
According to recent statistics, the Small Business Administration (SBA) approved $28.6 billion in loans this year. While that number might sound staggering to some, it's actually $1 billion less than the previous year, and the third straight year of decline.