THE "GO TO" PLACE FOR ANYONE INTERESTED IN SPECIALTY FOOD MARKETING.
MONEY, MONEY. HAVE ANY OF YOU BEEN ABLE TO BENEFIT FROM THE SBA "ARC LOAN PROGRAM?"
Hello,
The following is from the 43rd edition of Food Entrepreneur Magazine:
===========
STOP PRESS!!!
ATTENTION small business owners who could benefit from the SBA 2009 Recovery Act.
SBA says:
- Deferred-payment loan up to $35k
- Must be an existing (minimum two years), viable, small business in the U.S.
- Funds can be given out over six months, followed by 12 months with no repayment of principal, followed by a repayment period of five years.
- SBA pays monthly interest to the bank.
- Must have an established banking relationship.
CHASE says:
- Cannot be more than three years old
- Can borrow up to $50,000
- Must pay interest rate. Chase has no zero percent loan programs.
- If business is older than three years, must apply for a conventional loan at 6.65% secured interest, or a line of credit at prime plus 1.35%.
THE POINT:
- ONCE AGAIN, INNOCENT BUSINESS PEOPLE GET DRAGGED OVER THE COALS BY THE MEANY BANKS!!!!!!!!!!!
p.s. Finally found someone in the Dallas, Texas office of JP Morgan/Chase who knew what was going on - or so she said. I was onformed that a 45 minute via telephone application process must occur. After some time on the phone with her, and a subsequent two-hours collecting information, I called back to learn that I had been mis-informed that Chase does NOT NOW offer the SBA ARC Loan!!!!! Stay tuned...sfh
More information: http://www.sba.gov/recovery/arcloanprogram/index.html
The following is from the 43rd edition of Food Entrepreneur Magazine:
===========
STOP PRESS!!!
ATTENTION small business owners who could benefit from the SBA 2009 Recovery Act.
SBA says:
- Deferred-payment loan up to $35k
- Must be an existing (minimum two years), viable, small business in the U.S.
- Funds can be given out over six months, followed by 12 months with no repayment of principal, followed by a repayment period of five years.
- SBA pays monthly interest to the bank.
- Must have an established banking relationship.
CHASE says:
- Cannot be more than three years old
- Can borrow up to $50,000
- Must pay interest rate. Chase has no zero percent loan programs.
- If business is older than three years, must apply for a conventional loan at 6.65% secured interest, or a line of credit at prime plus 1.35%.
THE POINT:
- ONCE AGAIN, INNOCENT BUSINESS PEOPLE GET DRAGGED OVER THE COALS BY THE MEANY BANKS!!!!!!!!!!!
p.s. Finally found someone in the Dallas, Texas office of JP Morgan/Chase who knew what was going on - or so she said. I was onformed that a 45 minute via telephone application process must occur. After some time on the phone with her, and a subsequent two-hours collecting information, I called back to learn that I had been mis-informed that Chase does NOT NOW offer the SBA ARC Loan!!!!! Stay tuned...sfh
More information: http://www.sba.gov/recovery/arcloanprogram/index.html
Add a Comment
1 Comment
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Comment by IMKENOBI on June 11, 2009 at 4:48pm
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Update: The SBA program officially unveils on 15 June. Banks are concerned becasue, as of today, there is little if any specificity on issues such as underwriting requkirements and definitions of viable businesses and fair interest rate.
More later....sfh
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