Most of the stimulus money is in the form of Loan Guarantees.  Unfortunately, this involves a loan from a bank, credit union, etc, and an application to obtain the guarantee.  Is it a hassle absolutely.  Is it worth it.  Absolutely.  Increased amortization schedules, decreased interest rates increase limits, no personal guarantee.  Bottom line.  You have to pay to play.  (Look at it this way the more people involved the more jobs you save and create!)

This post has been started as a new thread in the Loans and Grants board.

Most of the stimulus money is in the form of Loan Guarantees.  Unfortunately, this involves a loan from a bank, credit union, etc, and an application to obtain the guarantee.  Is it a hassle absolutely.  Is it worth it.  Absolutely.  Increased amortization schedules, decreased interest rates increase limits, no personal guarantee.  Bottom line.  You have to pay to play.  (Look at it this way the more people involved the more jobs you save and create!)

How I can apply for Government loan or grant to expand our business.  We have heavy loss last year beacuse of recession and lost of big supplier in the East coast.   Now we want to import directly from other country and we need capital to import.    If you can help me how to apply or what is the procddure to get grant or loan from federal government. thank you albert barel tel 323-276-8070  

How I can apply for Government loan or grant to expand our business.  We have heavy loss last year beacuse of recession and lost of big supplier in the East coast.   Now we want to import directly from other country and we need capital to import.    If you can help me how to apply or what is the procddure to get grant or loan from federal government. thank you albert barel tel 323-276-8070  

the bottom line as I see it is that lenders are now more risk averse. They are unwilling to lend on a proposition that seems 'ify'. It's not so different in the personal consumer space with mortgage and refinance lending.

Earlier someone commented that because of the stimulus package banks are now waiving the personal guarantee requirement. Is this in writing anywhere? I've yet to see this and would not expect this to be true.

Read up on how to find loans and grants for your business here. We also wrote a blog on government loan programs that may be helpful. Lastly, feel free to use our Loans & Grants Tool to generate a list of loans and grants that fits your business criteria.

No such thing as Government Stimulus Money for Small Businesses. What the government is trying to do is intice lenders (your bank) to free up the flow of capital. There are allowing the SBA to increase their guarantee limits on loans (up to 90%) and reduce SBA fees to both the lender and borrower. This still means that your bank must underwrite and approve the loan. There are other sources - non-bank lenders that might be able to help you. These loans and business cash advances are usually more expensive then traditional loans but may be your only option. Types of loans - secured and unsecured - loans and lines of credit. Require excellent credit and high income/little debt. These could business or personal loans for amounts upto $250K - or micro-loans for amounts between $10K and $25K Asset based - based on business assets - credit card reciepts, a/r, inventory, equipment (loan or lease). There are also working capital loans provided you have purchase contracts in hand. But, there are no government programs that provide direct funding to bsuinesses.

Banks are stating - even for SBA loans - that it is not that money is tight but that they are seeing less qualified applicants. Thus, not only would they NOT drop the personal guarantee requirement - but would tighten lending standards even more. Banks look for three sources of repayment at a minimum. The first is either positive cash flow from the business or the conversion of assets - like inventory or a/r conversions. The second usually related to collateral - but remember, banks are not in the collateral business - they don't want it and it is expensive for them to take possission and sell the assets. The third is personal guanatees. This helps banks in several ways. First, it is harder for a borrower to walk away from a loan that they are personally responsible for. Second, should the borrower default, there are more assets to go after - house, retirement accounts, savings, etc. Banks don't just have tons of money to lend without recourse. They get funds by 1) depositors - to who they are required to repay when the depositors wants their money or 2) from borrowing from other banks and the Fed. Thus, they are required to repay those funds. Therefore, no bank will just lend money without ensuring (to the best of their ability) that they will be repaid. Just think - you deposit your hard earned money into a bank - the bank lends that money out and does not get repaid. You come in to get your money and they say to you - sorry - it was not repaid. I don't want that to happen and I don't think you would either. Two great articles regarding collateral and personal guarantees - check them out: http://www.businessmoneytoday.com/Articles/Financing/Article_Why-Do-Lend... http://www.businessmoneytoday.com/Articles/Financing/Article_Why-Do-Lend... Message Edited by NicoleD on 12-18-2009 10:31 AM