There are some news articles that boldly claim the SBA will now provide relief if you have an existing business loan and are having trouble making the payments. This is not a true statement and needs to be clarified. As seen in more detail in this article, this is wrong because it applies to troubled loans made in the future, not existing ones.

Here is how it works. Assume you were one of the lucky few that find a bank to make a SBA loan. You proceed on your merry way but run into tough economic times and find it hard to repay. Remember these are not conventional loans but loans from an SBA licensed lender that are guaranteed for default by the U.S. government through the SBA (depending upon the loan, between 50% and 90%). Under the new stimulus bill, the SBA might come to your rescue. You will be able to get a new loan which will pay-off the existing balance on extremely favorable terms, buying more time to revitalize your business and get back in the saddle. Sound too good to be true? Well, you be the judge. Here are some of the features:

1. Does not apply to SBA loans taken out before the stimulus bill. As to non-SBA loans, they can be before or after the bill's enactment.

2. Does it apply to SBA guaranteed loans or non-SBA conventional loans as well? We don't know for sure. This statute simply says it applies to a "small business concern that meets the eligibility standards and section 7(a) of the Small Business Act" (Section 506 (c) of the new Act). That contains pages and pages of requirements which could apply to both types of loans. Based on some of the preliminary reports from the SBA, it appears it applies to both SBA and non-SBA loans.

3. These monies are subject to availability in the funding of Congress. Some think the way we are going with our Federal bailout, we are going be out of money before the economy we are trying to save.

4. You don't get these monies unless you are a viable business. Boy, you can drive a truck through that phrase. Our friends at the SBA will determine if you are "viable" (imagine how inferior you will be when you have to tell your friends your business was determined by the Federal government to be "non-viable" and on life support).

5. You have to be suffering "immediate financial hardship". So much for holding out making payments because you'd rather use the money for other expansion needs. How many months you have to be delinquent, or how close your foot is to the banana peel of complete business failure, is anyone's guess.

6. It is not certain, and commentators disagree, as to whether the Federal government through the SBA will make the loan from taxpayers' dollars or by private SBA licensed banks. In my opinion it is the latter. It carries a 100% SBA guarantee and I would make no sense if the government itself was making the loan.

7. The loan cannot exceed $35,000. Presumably the new loan will be "taking out" or refinancing the entire balance on the old one. So if you had a $100,000 loan that you have been paying on time for several years but now have a balance of $35,000 and are in trouble, boy do we have a program for you. Or you might have a smaller $15,000 loan and after a short time need help. The law does not say you have to wait any particular period of time so I guess you could be in default after the first couple of months.

8. You can use it to make up no more than six months of monthly delinquencies.

9. The loan will be for a maximum term of five years.

10. The borrower will pay absolutely no interest for the duration of the loan. Interest can be charged, but it will be subsidized by the Federal government.

11. Here's the great part. If you get one of these loans, you don't have to make any payments for the first year.

12. There are absolutely no upfront fees allowed. Getting such a loan is 100% free (of course you have to pay principal and interest after the one year moratorium).

13. The SBA will decide whether or not collateral is required. In other words, if you have to put liens on your property or residence. My guess is they will lax as to this requirement.

14. You can get these loans until September 30, 2010.

15. Because this is emergency legislation, within 15 days after signing the bill, the SBA has to come up with regulations.

Here is a summary of the actual legislative language if you are having trouble getting to sleep:

SEC. 506. BUSINESS STABILIZATION PROGRAM. (a) IN GENERAL- Subject to the availability of appropriations, the Administrator of the Small Business Administration shall carry out a program to provide loans on a deferred basis to viable (as such term is determined pursuant to regulation by the Administrator of the Small Business Administration) small business concerns that have a qualifying small business loan and are experiencing immediate financial hardship.

(b) ELIGIBLE BORROWER- A small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632).

(c) QUALIFYING SMALL BUSINESS LOAN- A loan made to a small business concern that meets the eligibility standards in section 7(a) of the Small Business Act (15 U.S.C. 636(a)) but shall not include loans guarantees (or loan guarantee commitments made) by the Administrator prior to the date of enactment of this Act.

(d) LOAN SIZE- Loans guaranteed under this section may not exceed $35,000.

(e) PURPOSE- Loans guaranteed under this program shall be used to make periodic payment of principal and interest, either in full or in part, on an existing qualifying small business loan for a period of time not to exceed 6 months.

(f) LOAN TERMS- Loans made under this section shall:

(1) carry a 100 percent guaranty; and

(2) have interest fully subsidized for the period of repayment.

(g) REPAYMENT- Repayment for loans made under this section shall--

(1) be amortized over a period of time not to exceed 5 years; and

(2) not begin until 12 months after the final disbursement of funds is made.

(h) COLLATERAL- The Administrator of the Small Business Administration may accept any available collateral, including subordinated liens, to secure loans made under this section.

(i) FEES- The Administrator of the Small Business Administration is prohibited from charging any processing fees, origination fees, application fees, points, brokerage fees, bonus points, prepayment penalties, and other fees that could be charged to a loan applicant for loans under this section.

(j) SUNSET- The Administrator of the Small Business Administration shall not issue loan guarantees under this section after September 30, 2010.

(k) EMERGENCY RULEMAKING AUTHORITY- The Administrator of the Small Business Administration shall issue regulations under this section within 15 days after the date of enactment of this section. The notice requirements of section 553(b) of title 5, United States Code shall not apply to the promulgation of such regulations.

The real question is whether a private bank will loan under this program. Unfortunately, few will do so because the statute very clearly states that no fees whatsoever can be charged, and how can a bank make any money if they loan under those circumstances. Sure, they might make money in the secondary market, but that is dried up, so they basically are asked to make a loan out of the goodness of their heart. On a other hand, it carries a first ever 100% government guarantee so the bank's know they will be receiving interest and will have no possibility of losing a single dime. Maybe this will work after all.

But there is something else that would be of interest to a bank. In a way, this is a form of Federal bailout going directly to small community banks. They have on their books loans that are in default and they could easily jump at the chance of being able to bail them out with this program. Especially if they had not been the recipients of the first TARP monies. Contrary to public sentiment, most of them did not receive any money. But again, this might not apply to that community bank. Since they typically package and sell their loans within three to six months, it probably wouldn't even be in default at that point. It would be in the hands of the secondary market investor.

So is this good or bad for small businesses? Frankly, it's good to see that some bailout money is working its way toward small businesses, but most of them would rather have a loan in the first place, as opposed help when in default. Unfortunately, this will have a limited application.

Wouldn't it be better if we simply expanded our small business programs so more businesses could get loans? How about the SBA creating a secondary market for small business loans? I have a novel idea: for the moment forget about defaults, and concentrate on making business loans available to start-ups or existing businesses wanting to expand.

How about having a program that can pay off high interest credit card balances? There is hardly a business out there that has not been financing themselves lately through credit cards, simply because banks are not making loans. It is not unusual for people to have $50,000 plus on their credit cards, just to stay afloat. Talk about saving high interest. You can imagine how much cash flow this would give a small business.

We should applaud Congress for doing their best under short notice to come up with this plan. Sure this is a form of welcome bailout for small businesses, but I believe it misses the mark as to the majority of the 27 million business owners that are simply looking for a loan they can repay, as opposed to a handout.

Sue Malone
442 Diablo Road, Suite 137
Danville, CA 94526
Email: info@StrategiesForSmallBusiness.com

Sue Malone is a small business advocate and founder of Strategies For Small Business, a company devoted to providing SBA Loans for small business owners, whether as start-ups or for the expansion needs of existing businesses. For six years she has been the nations #1 provider of SBA Community Express Loans, having funded over 25,000 businesses in all 50 states. For a free loan consultation or for more information on the programs, visit our website at: http://www.StrategiesForSmallBusiness.com Or call (925) 899-8449.

©2008 Strategies For Small Business. All rights reserved.

SBA has loan programs

http://sba.gov/services/financialassistance/sbaloantopics/index.html

Author: Business Local Listings

The global financial crisis has made it quite difficult for companies, especially small businesses, to get business loans. Ironically, it is also in this situation that smaller companies often need additional capital infusion to boost income. You may need to get small business loans to acquire a better business location, construct a new building, renovate your premises, pay for new equipment, fixtures or furniture or increase inventory and working capital.

Most Small Business Loans Require Collateral

To get business loans, even small business loans, is a major challenge.

First you need to identify which among the many types of small business loans you need. Small business loans ranging from $5,000.00 to $35,000.00 are called micro loans. For larger needs, such as for the acquisition of land, buildings and other major fixed assets, development financing is what you should find. There are also import export loans as well as franchise financing. Do your research to find out if you are qualified for small business loans guaranteed by the U.S. Small Business Administration or SBA.

Any of these small business loans will require extensive preparations and paperwork. As a small business owner, you will need to prove your credit worthiness through a personal credit history report. Lenders will also require a business plan which includes your credentials as the business owner, your company financial statements, business assets and an analysis of your market. All of these should be packaged in a professional loan proposal which presents how the loaned amount will be used to strengthen the business and how you intend to repay the loan. Most of all, you need to present your loan collateral – the assets you will put up to secure the loan.  

Quick and Easy Small Business Loans with No Collateral

For smaller acquisitions or day to day business needs, there is a way for entrepreneurs to get small business loans easily and quickly with no collateral. This is through merchant services.

Merchant services provide credit card services to businesses. This enables them to accept and process payments through credit cards or debit cards either through face to face purchases, online transactions, or even by phone or fax. Merchant service providers supply terminal equipment for card swiping, as well as the necessary software and high speed IP solutions.

Most businesses need credit card services since consumers routinely pay for goods and services through credit cards and debit cards these days. If your business has not taken this step yet, you may have been missing out on more than half of your income potential.

These same merchant services also provide the solution for your small business loans. Collateral-free loans can be availed of through their cash advances, with the loan amount computation based on the monthly credit card revenue your business generates. Credit card sales requirements may be as low as $3,000.00 a month. You will not be asked for collateral since your future revenue is your collateral.  

The best types of merchant cash advances do not require fixed monthly payments nor do they impose deadlines on loan payment. A certain percentage is instead deducted automatically from your credit card revenue each month to go towards loan payment. This way, you never have to worry about loan amortization.

Once your cash advance has been fully paid, you may apply for another one. It is like having a revolving credit line. Make sure that you compare the terms of several merchant service providers, though, and read the fine print on contracts. There are so many merchant service providers competing for your business that you’ll surely find one that fits your needs.

About the Author:

Advanced Merchant Services
Contact Name: Roger Inman
P.O. Box 1475 Safety Harbor, FL 34691
Bus: 727-642-3606
Bus Fax: 877-413-6067
E-mail: rinman3@tampabay.rr.com
Website: www.bankcardprocess.com

Article Source: ArticlesBase.com - Getting Small Business Loans with No Collateral in this Recession

There are many ways to make money online. One great idea is to write. Yes, you can write on the Internet and make a good deal of money doing so! You do not have to have any training or classes to write, but a good grasp of the English language and grammar skills are important. There are many content companies that you can sign up for that give their clients a list of topics to write about, which you then get paid for.

Other companies allow you to do freelance writing on your own, and sell your work for a set price on their website. There are numerous companies that you can bid for jobs on from private clients, as well. Writing online can be a great way to pick up some extra cash, or even to make into a full time career. Best of all, writing can work around your schedule, and not your bosses. Moms and dads who stay at home with the kids can easily work around their writing jobs. Although many content sites do have deadlines, many of them are flexible, and you only have to take on as much as you can handle.

Along with writing on the Internet, you can also find jobs editing others' work. Editing jobs may require a degree in English, although a few college classes in Grammar and English can go a long way towards landing an editing job. Editing is another work from home business that allows you to stay home with your kids and work from the comfort of your own home.

Finding a work from home business venture is easy when you understand what is out there. Find your niche today and start enjoying the luxury of working right from your house.

Dustin Heath recommends that you visit http://www.homebiz-moneytree.com to learn how you can start your own home-based business earning multiple streams of income with a Plug-In Profit Site - Complete Money Making Site Setup FREE!

Maverick Money Makers was started by Mack Michaels, in his sales pitch he gives the old rags to riches story you hear all across the internet, of how he started from nothing. Stumbled into these tools, has now made a fortune and is willing to pay it forward and now teach you all he knows.

Like many programs out there, One thing that put me off is that there is basically a guarantee of making $350 a day in a short amount of time, just by following what you are taught. My guess is that with no experience and even with some experience this will take many months to build up anywhere close to this kind of income on a consistent basis.

That being said there is unlimited potential with this program. It is overwhelming all the information it has on how to make money online. The thing that caught my eye was the massive amounts of information on how to affiliate market. There is a wealth of information on this subject and this alone after mastering the skills taught could get you to building an income that may match the hype.

My understanding is that there is so much information in this program that it becomes overwhelming. Especially if you are like me and have little experience marketing on the internet. Like most online businesses this is not a get rich quick scheme. It will take time and effort to start to build residual income.

I am told it is a very simple set up and very easy to use. Everything is taught with step by step video training, that walks you thru every part of the process. Even the basis stuff for newbies! And support is supposed to be good, answering a technical question within the hour. Like most programs just implement the techniques that you learn consistently and stick to it and you will begin to see results.

I have heard reports of some questionable or unethical practices taught in the program. Since I have not gone thru the program I cannot judge the moral or ethical issues that may or may not be taught. But a source from the inside of the system, claims there is only one area that is remotely close to being questionable practices, and all is legit.

In any case, my review on the company thus far is looking pretty promising. HOWEVER, I will say one more thing.

Any business, Maverick Money Makers included, is literally USELESS to the starting out marketer...unless you KNOW how to market, how to generate leads, and the PRINCIPLES behind succeeding in the industry first.

I have watched plenty of people fall on their faces, regardless of their products or companies, because they simply do not KNOW how to market, or build their business FIRST, your job as an entrepreneur is to EDUCATE yourself first and foremost, to develop yourself, and to ALWAYS be learning and growing.

This is the true formula for success, and leads to the most good in the long run. If you follow that formula, and really SEEK knowledge to market your business like a professional..than you will have major advantages over most Maverick Money Maker Distributors.

To see how Kendra found the tools to explode her online income Using the Most Cutting Edge Technology
Click Here!

Author: Paul Jesse

Are you looking for a real work at home business money opportunity? Perhaps you already have a home business and need to make more money. There have been many people who started their own home business on the internet been very successful with it. Why not you!

You need to know what it takes to succeed no matter what work at home business money opportunity that you choose to do.

No matter what anyone tells you, it is not as easy as it looks to make money on the internet. You yourself need to have what it takes to succeed because the business is nothing without you to run it.

If you want to be successful with any work at home business money opportunity here are some of the things need to have.

It is imperative that you have the drive to succeed. How much time and effort are you willing to put into your home business? The more time and effort you put into it the faster you can be successful.

You are the only one who can make it happen. So you have to want to succeed more than anything. You will never be successful with any business if you let anything or anyone bring you down or stop you from going forward. It won't always be easy and you will have to work hard to get where you want to be but it is all worth it in the end.

Do you have the patience you need? Believe it or not, you will not get rich overnight or even quickly, unless you just happen to be extremely lucky. It will take you time to make money on the internet.

Are you willing to educate yourself on how to run a successful home business? If you are willing to let others teach you what they did to get to the top then you have a very good chance of following them.

However, if you are not willing to learn then you will have a very rough road ahead of you that you may never find the end of.

These are only a few of the things that you need in order to be successful. You need to figure out if you do have what it takes to make the kind of money you want to with your own home business.

Do not try a work at home business money opportunity until you are sure that you have what it takes. Otherwise, you may find yourself quitting before you ever get started as so many people do.

About the Author:

Paul Jesse invites you to visit his make money from home online website today. His Work At Home Directory was created for people who want to make money online, make money at home, or simply start a home based business. To learn more internet marketing tips please click here now: ===> http://www.sheamarketing.com

Article Source: ArticlesBase.com - How to Make Work at Home Business Money Opportunity Work for you

Author: Gary Kohnke

Building your financial wealth is more important now than it ever has been.  The earlier you get started the better off you’ll be down the road.  I have been investing in my 401K since I was 28 years old and it was getting to be a very nice nest egg until the stock market crashed.  I lost quite a bit of money, but fortunately for me, I still have a lot of time before I retire.  Some people don’t have the luxury of time, so I feel for them and hope that the market bounces back quickly to help those that need it soon or right now.  I know my parents lost about $300,000.00 and I was sickened to hear it.  The only thing they can do now is to wait, and hopefully it will come back around before they need to pull it out.  I am keeping my fingers crossed for all of those who are in this financial situation.

The best time to invest in your future is when you are young.  The more time your money has to sit in your investments, the better off you will be.  The great thing about retirement plans is that they take the money right out of your pay check so you don’t even miss it.  The power of tax free compounding is one of the best investment opportunities going today, and if your company matches your investment; that is a return on your investment immediately.  If your company does do a partial match on your retirement plan, then that is money you are losing out on if you not in it.  You will be amazed at how fast that account will grow.  I also feel that there are great deals on stocks right now, so this is the time to get in.

 Just remember that excuses don’t build wealth, action does.  There can be a million excuses why you don’t start investing in your future. I’ll start tomorrow, (tomorrow never comes) How will we get by with less money then we have now, we or I have no extra money to put in to retirement, if I put money in to my retirement fund, I can’t touch it until I am 65 years old or I will be penalized.  Don’t use these types of excuses to start investing in your future!  You are the most important person to put money towards or to invest in.  Just start putting money in your retirement plan right now, and I guarantee that you will find a way.  Taking the money off of your gross pay hardly affects your net pay at all. The government also gave you a slight raise by lowering your federal taxes.  I have been around for a while now and wish I would have started putting money away when I was 18.  I can’t imagine what my funds would look like today.

I just want to clarify one thing, your net worth, financial wealth and financial profile all means the same thing.  It is what you accumulated monetarily and in assets minus all your debts.  I would suggest taking a look at your financial profile right now and then 2 years from now take another look.  You will be thanking me if you followed my advice.  That I guarantee.  The best investment is to invest in you and your family.  Like Nike’s slogan says, “Just do it”!

Gary Kohnke

http://www.moneytakingsurveys.com

About the Author:

After writing reports for the EPA for so many years, I have decided to turn my attention to those who are looking to work from home and make money online through my personal experiences. I also want to help people build their financial wealth. I hope to save them the time and grieve that I experienced. I wish everyone success and happiness!

Gary Kohnke
CEO-GAK Enterprises, LLC
http://www.moneytakingsurveys.com

Article Source: ArticlesBase.com - Building Your Financial Wealth, Start Immediately!

Probably the best way to work from home is by selling other people's stuff. Also known as affiliate marketing. If you don't know what that is, all you have to do is type it into a search engine and you will find that there is no shortage of information. By selling other people's stuff you can actually earn commissions up to 75 percent! And you don't even have to stock any inventory. Of course, if you want to sell your own stuff, there are always auction sites like eBay, among others.

Other ways to work from home legitimately include network marketing, or MLM opportunities. And you'll find that there is no shortage of network marketing companies out there. But be sure that the company has been around for at least ten years, like the one listed below. First find out what other people are saying about the company and learn as much as you can about them before taking that all important first step.

Yes, there are legitimate work from home opportunities available. You just need to do your homework to find the best ones. And always remember, if it sounds too good to be true, it probably is.

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1. Postcard marketing

2. E-mail blasts

3. Social networking sites (i.e. Twitter or Facebook)

4. Podcasting

5. Creating a website

It is no surprise that 163.3 million Americans use the Internet whether it is to find out new information, shop online, or learn about a business. For this reason, it is crucial for start-up and small businesses to leverage the power of the Internet instead of focusing on traditional advertising maneuvers such as print media and television advertising.

Postcard marketing may seem slightly outdated, but it is important to highlight the massive effect of postcards. Postcards printed on 4" by 6" index cards are highly noticeable in the mail because they can be flipped over and read in a matter of seconds. Immediately, the message is sent across to the end-user without them having to peruse through a pamphlet or packet that usually instills a lack of interest or frustration.

E-mail blasts are excellent for small business owners to send out to their network of contacts. Even better, they're excellent for building a database on a website. E-mail blasts should be kept simple, to-the-point, and underscore promotional offers to gain the reader's attention. Moreover, they can be sent out to multiple parties from the recipient, increasing word of mouth buzz.

Social networking sites have become a marketing phenomenon that is helpful for businesses in spreading their brand, mission, and services and/or products in the form of a user-profile. Also, sites such as Twitter.com and Facebook.com have changed the face of Internet marketing by establishing the online sphere as a word of mouth metropolis. Now is the time to take advantage of social networking sites.

Another helpful marketing suggestion is to create a simple podcast. Not sure how or where to start? Make sure your computer has a web cam. If it doesn't, these gadgets can be bought at inexpensive price at large computer and electronic retailers. Introduce your business concept through the podcast that is less than 30 seconds. Podcasts are an excellent marketing tool because they can be posted on a website, sent through e-mail, and posted on sites such as YouTube. According to Quantcast, YouTube averages 72.5 million users per month.

With the implementation of these media, businesses are likely to see an increase in interest. The next step would be to create an intuitive, user-friendly website that summarizes the concept of the business without too many graphics or distractions. For example Ethos Mentor (www.EthosMentor.com) offers affordable branding solutions for entrepreneurs. Following these steps can help an entrepreneur bolster their brand and reach their selected demographic.

About the author:

Ellisa Brenneman started her career, after receiving her Bachelor Degree from the University of British Columbia, with the Canadian government merging academic rigor and business savvy to produce and disseminate research findings. She has been published multiple times in scientific journals for her research findings. A born entrepreneur; her zeal for entrepreneurism soon took hold. She's started green businesses and has vast experience managing public, media and investor relations for small-cap public companies. Ellisa is the owner of Ethos Mentor. Ethos Mentor provides entrepreneurs with affordable one on one mentoring, business coaching and capital raising services so they can launch and grow their businesses. Visit http://www.ethosmentor.com for additional information.

Rule number one: Don't pay for ANYTHING. If some site makes you pay a membership fee, don't do it.

I suggest doing what my sister-in-law does for spare cash... she buys things from thrift stores and pawn shops for cheap and then re-sells them on ebay for a profit.

It works and you don't have to spend a dime!