These loans are part of the U.S. Patriot loan initiative. It was approved in June of 2007 and grew stronger every year. The program provides the necessary capital to our spouses and veterans to meet business needs of all kinds. The loans provided by private lenders are overseen and regulated under the supervision of the SBA. These loans are assertive and backed by a 90% U.S. government guarantee for any losses incurred through the loan provider.
Since the loans range between $5,000 and $25,000, they're the definition of simplicity. There is no paperwork, and you can begin the process by filling out an easy one-page application. If you're approved, the process is completed with the standard SBA forms, which can take up to 15 minutes to fill out.
But what about finances? Naturally, the application needs to be evaluated based on specific details about your business's finances. Because the loans are tiny, you'll have to give your gross revenue instead of net profits. If you're a new business, you'll be providing the projected gross income. This means that there is no need to include the tax and expenses or delineate such costs as rent, utilities, salary and inventory, signage, computers, build-outs shipping, trade shows expenses, credit card processing costs, etc.
There isn't an analysis of the current and previous year's results. Even if your profit suffered over a couple of years, they're concerned more with the present now, with current gross profits. This is particularly beneficial since many companies perform better than in FY 2008 and 2009. Additionally, if you've been operating for more than three years, then you can calculate the average gross sales per year over the past three years.
What is the reason for the focus on gross earnings? One of the main factors to consider is whether the company can handle the monthly payment for loans (only $60 per month for each $5,000 borrowed), and for this to be a decision, a detailed analysis of net profits isn't needed. Be aware that these are not secured loans, and they will look at your credit score. The good news is that veterans are given a positive evaluation of their credit reports.
Therefore, take the initiative and apply for this straightforward and beneficial SBA program. It is designed specifically for your cash flow requirements. Its straightforward procedure allows you to focus on building your business rather than being covered in the pile of paperwork.
0 Comments