Evaluate credit worthiness prior to applying for a business loan

Evaluate credit worthiness prior to applying for a business loan.

Small business owners must avoid depleting their current liquidity or cash position. They must immediately deal with negative financial issues including poor or inaccurate credit reports, and resolve all business and personal tax issues. A negative credit report and/or credit score can be a “deal buster”. Back taxes, liens, garnishments, multiple bounced checks all show increased risk for a lender. Borrowers should deal with recent bankruptcies by providing an explanation of why it occurred.

The above is quoted from EastSide Business Journal, where Jennifer Kilgus shared practical steps that will help us secure capital for our business. The above quoted is one of her tips that I deemed important for those small business owners opting for a small business loan.

There's $8B Available in ’09 For Small Businesses

According to Mark Mueller, one of Orange County Business Journal Staff, SBA still funds real estate, fixed asset acquisitions and stated that there's $8B Available in ’09 For Small Businesses. This is good news, right?

“Even with the credit markets in as much flux as they are, borrowers can obtain these government-backed loans for up to $10 million,” Smith said.

There should be plenty of SBA money still available for local deals in 2009. According to Smith, next year’s SBA budget includes $8 billion for SBA 504 financing nationwide. The loan program is funded by the monthly sales of long-term bonds.

Whether all that money is doled out by banks remains to be seen. Loans in the 504 program are down 36% from a year ago, according to data from the Federal Reserve. The other big SBA loan type—the 7(a) program—has seen lending drop even more, by 55% year over year.

Check out more of this news after the jump. Read more.

Loss of Consumer Credit?

Will the Loss of Consumer Credit Serve as the Next Economic Aftershock to Further Fuel the Financial Crisis?

U.S. consumers are already losing their jobs at an accelerating rate.

The same thing is now set to happen to their credit lines.

But with so many Americans already losing their main source of income – their jobs – at an ever-spiraling rate, will an economy that derives two-thirds of its power from consumer spending end up mired in its worst funk in decades because those same consumers are now losing their charge accounts?

The above was the mind boggling issues that our world financing really face these days. What's your stand to this issue? You might as well wanted to learn more about this write up. You can check this out on MoneyMorning!

Quick News: SBA holding loan sessions for lenders

A series of round-table discussions for lenders on federal and state programs to help small business will be sponsored by the U.S. Small Business Administration's Philadelphia District Office.

The free sessions will be held over the next few weeks in East Norriton, Exton and Philadelphia, in collaboration with the U.S. Treasury Department's Office of Thrift Supervision, the Federal Reserve Bank, and the state of Pennsylvania.

The sessions will be:

Tuesday, Dec. 9, 1-3 p.m., Associated Builders and Contractors Offices, 430 W. Germantown Pike in East Norriton;

Friday, Dec. 12, 10 a.m.-noon, Seedco, 737 Constitution Dr. in Exton.

Tuesday, Dec. 16, 10 a.m.-noon, at the SBA's Philadelphia District Office, 900 Market St., fifth floor.

Registration is requested but not required. To register for one of the sessions, contact Donald Jefferson, SBA business development specialist, at 215-580-2726 or donald.jefferson@sba.gov.

Well, Small Business Administration really did play a very important role in heloing business owners succeed in their business ventures especially small business financing concerns. This is really helpful so you who can be there on the said venues, please do attend. Tell me the feedback please! Thanks!