You can get SBA (modest small business administration) loans via independent SBA mortgage companies which are branched off in the federal govt. Loans $25,000 or less – base rate plus 4.25 percent or base rate plus 4.75 percent. In other words, they evaluate the creditworthiness of individuals or businesses on the basis of their credit history. There are a number of general qualifications that must be met before a business can obtain a SBA guaranteed loan.
Financial aid made available through government grants can vary from USD 100 to USD 100,000 and most of them have a strict eligibility criteria. Unlike other types of start up loans, it has flexible terms and it has low down payment option. In 1964 the SBA expanded its portfolio to join the War on Poverty, with the Equal Opportunity Loan Program (EOL).
Your credit records, your payment plan, the purpose of the loan, and securities or guarantees are the key elements for getting a loan. Bankruptcy Code: The federal laws that govern bankruptcy proceedings and conditions for granting debt relief to individuals and organizations who are unable to pay their debts.
However, it must be kept in mind that the banks providing these loans do not always offer all the programs. Loss of ability to restructure existing debts, increase in costs, and reduction in suppliers, will also qualify the firms for loans, since the aforesaid issues would negatively impact the ability of a business to tide over difficult times.
The US Federal Housing Administration (FHA) offers loans by acting as an intermediary between loan applicants and lenders, up till a standard statutory limit. The student loans will be directly administered by the department of education; earlier, they were given by banks.