Loans, Insurance & credit card information

There are numerous types of SBA loans available and many of them are designed to be quite useful and helpful however deciding upon exactly what you need and how to get it is sometimes. While there are numerous programs that are designed to work for small business owners it is very important to ensure that you know what you need to have in order to really improve your businesses chance of securing a SBA loan.

First, you must be turned down for a loan from a private financial institution in order to be eligible to apply for a SBA loan. Once you have a formal denial from a private lender you are able to apply with the SBA for a loan.

Second, you need to have a well written business plan. This does not mean you simply toss together a few pages of material. You need to ensure that you have information in the business plan about the purpose of the business, the business structure, how long it has been in operation, and any information that is relevant to the type of business you have.

Third, you need to have some financial information for both the business and all people who own at least a 20% share of the business. You need tax statements for at least the last 3 years for the business, and you also need to include P&L statements for the next two years based on realistic sales from the previous 3 years. For personal financial records, you need to include tax returns and any other relevant financial documents.

Fourth, you need to include information about why you are requesting the loan, how much you need the loan to be for, proposed repayment information and information on what will be used as collateral for the loan. This is very important and needs to be kept in line with figures that are realistic to be paid back based on the current performance of the business.

Lastly, you are going to need to have a complete detailed resume for anyone who will be in a management position in the business. You do not want to just have an application for each management person, but rather a very detailed resume that covers all of their relevant experience so that you know the SBA loan officer will agree the business is in knowledgeable hands.

As you can imagine being approved for a loan is not always an easy task, however ensuring that you are prepared before attempting the process is a sure way to ensure that it goes as smoothly as possible with the fewest complications. Your business needs your help and determination to ensure that it is successful. Spending the time to prepare the proper documents will ensure that your business has a much better chance of having the loan improved to handle all of your needs quickly and easily.

You have probably figured it out by now, a lot of people are making big money in the loan modification business. One of the reasons for this is that there are not a lot of laws out there that regulate the loan modification business. Some people are just getting into this new business may not be aware that new laws are being passed that affect one important part of this business, namely the charging of an advance fee.

In this article, I am going to provide you with some information regarding the types of new laws we are seeing that affect our industry. To those of us in the loan modification business, advance fees are important as as the collection of these fees help us guarantee that we will be paid for the services we are providing.

When helping a client with a loan modification where we are unable to collect an advance fee, we get concerned that even if we are successful in negotiating a great modification for the client, we might not get paid for our services because the client does not have the money available to pay us once the loan mod has been approved.

We are now seeing states that are starting to come out with new laws restricting advance fees. Florida and California for example have new laws that restrict advance fees charged by foreclosure consultants or foreclosure rescue consultants. The California law is already in place with further restrictions going into effect in 2009. The Florida law goes into effect on October 1, 2008.

The new Florida law has two main prohibitions that apply to most loan modifications.

You cannot engage in or initiate foreclosure related rescue services without first entering a written agreement with the homeowner.
You cannot charge or receive or even collect a fee for your loan modification services before completing or performing all services contained in your written agreement.

There’s still plenty of money to be made in the loan modification business. You just need to be alert to the changing laws that are being implemented that affect the loan mod industry.

To learn more tips about starting a loan modification business, download this.