SBA LOANS AND CREDIT BUREAUS
by Tealuck2, Window Shopper
- Created: March 22, 2009, 11:36 pm
My wife has been operating her own small business since 1983. I was forced to start my own home based business after a serious car accident in 1999. Because of the bad economy and many lay offs my wifes business is hurting very badly and may have to close down this summer.
I too have been affected by this economy and my income too stopped in September 2008. We have paid all business related bills and mortgages out of our savings and we have exhausted all available funds. Now we are trying to survive by making our payments through credit cards. I and my wife cashed out our life insurance ( $40,000 ) and paid bills with it.
With all this we still have to pay local property taxes which have gone up by 5,000 to $ 25,000. The mortgage payments on the business property does not stop either. We cannot sell the building since the economy is so poor no one wants to buy it and start a business there.
We tried to get a loan but all banks look at is a credit report and not our past history or that we ran a successful business in the community.
It is difficult to get a loan because there are 3 credit bureaus with 3 different credit scores. Then there is also a Fico score. Each one has their own way of calculating the score and we are at their mercy. We just cannot get a loan to survive let alone start a new business. The government should step in and regulate the credit reporting industry so that there is one score and not 4 or 5 of them that invariable create a lot of problems for the consumer.
Banks will not give us a loan because we now dont have the income we had earlier to show that we can pay the loan. We are slowly but surely getting near the unemployment line. I cannot even get unemployment because I had a small internet based business. I have only contributed to social security for a very short period of time ( 2 years ) so I am not eligile for that either although I am 61 years old this month and have medical issues.
The American dream is gone. We just need to survive. If we dont get some help soon I will be bagging groceries pretty soon. Paper or plastic Sir ?
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