23 Jan 4 Ways to Get Around SBA Loan Shutdown
Affecting more than 200 businesses waiting on the loans across the United States, a Small Business Administration spokesman says, the government shutdown has put a halt to its normal flow of working capital.
The SBA typically handles about 200 loans daily for working capital via the SBA’s 7(a) program and another 120 loans for commercial properties through what the SBA calls the “504 program.”
This amounts to roughly $200 million worth of loans every day for small and midsize businesses, according to the Washington Post.
But all came to a stop on December 22, the day the government shutdown began. As the longest government shutdown in U.S. history is nearing a month’s mark with no clear end in sight, here are 3 ways for business owners to obtain the funds they need.
1. Seek Out a Merchant Cash Advance
A merchant cash advance is an advance of a business’s future receivables. While it has been around since the 1980s, it only truly took off during the last decade due to the recession in the U.S. Small businesses who need quick capital can receive anywhere between $2,000 and $3 million. The great thing is the turnaround is very fast – 24-48 hours.
A business can be approved for a merchant cash advance with firms like Global Business Lending with the following minimum requirements:
- Having been in business for at least 3 months
- Having at least $6,000 in regular gross monthly deposits
- Having an active U.S.-based business checking account
- Having a clear vision and purpose for the funds to prove an investor will be paid back within the given term
2. Exercise Patience
U.S.-based businesses shouldn’t expect business to be back to normal – even after the government shutdown ends. Once the SBA employees get back to work, they face a backlog of orders, requests and applications. Still, if you would like, start filling out your SBA applications now so that at least you’re among the backlog when they return to work.
3.Use Your Retirement Assets
If you have retirement assets of at least $35K, you can qualify for Business Directed Retirement Account where you can access your money tax free and direct it into your business. This is perfect if you’re looking to buy or start a business from the ground up.
Find out how to get this sort of access to capital by visiting www.globalbusinesslending.com
4.Get Line of Credit
Having a line of credit or other financial cushion can help a company weather a shutdown. Owners whose companies are dependent on government contracts, or whose customers are government workers, should make sure they always have a financial buffer.
They only take 24-48 hours to get an approval and you’ll have your line in two weeks, ranging from $20K to $350K. To find out if you qualify for a line of credit, call 855-200-0705.
You may qualify for this in the following ways:
- With good personal credit 680 to 700+
- Verifiable income for personal loans or use a business credit/Partner,
- Strong depth and history of credit, few derogatory items, strong debt to credit ratio, few inquiries in last 12 months
- No collateral needed