With the economy showing early signs of recovery, now is a good time to consider small business ownership, including shipping franchises. But getting financing requires a little more legwork and information than it used to.
SBA-guaranteed loans are a common form of financing in shipping franchises, available from many banks, including your local, community bank.
Our shipping franchises meet the basic requirements of SBA-backed loans:
The loan terms are defined by the use of funds:
Many SBA loans use the assets purchased with the proceeds of the loan as collateral for the loans.
However, SBA requirements can also include the owner to:
Terms vary by lender and by loan, so borrowers should consult their local bank for more details.
Just last week, President Obama asked Congress to send him legislation that would lower the cost of funds to banks from 5% to 3% for those that submit a small business lending plan. In harder-hit communities experiencing higher job-loss or underserved rural and urban areas, Obama is asking for an ever lower 2% cost-of-funds rate.
These moves are intended to loosen the capital markets and encourage lending for small business creation.
So whether you're evaluating shipping franchises or another business concept, it appears the growth of small business is now on the radar of the Obama Administration.
(Note: credit for some material in this post to California Bank & Trust in San Diego, CA)