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What No One Ever Tells You About Starting Your Own Business

The Insider's Guide To Small Business Loans

"The will to win is not nearly as important as the will to prepare to win" Bobby Knight.

The Insider's Guide To Small Business Loans

By Dan M. Koehler

Many entrepreneurs want to know more about securing small business loans. For those entrepreneurs looking for a book about the subject, we suggest The Insider's Guide To Small Business Loans by Dan M. Koehler.

Koehler served as the Program Director for the U.S. Small Business Administration and is particularly qualified to discuss small business loans. Koehler writes: "To successfully obtain a small business loan, you will need to understand essential borrowing fundamentals, including:

· Credit factors;

· Collateral requirements;

· How to apply for a loan;

· What your lender looks at when reviewing your application;

· How to avoid common mistakes;

· Types of business loans available for your particular situation; and

· Loan sources available for your type of business"


The core of The Insider's Guide To Small Business Loans is four chapters:

· Understanding the Borrowing Process

· Know Your Lender Options

· Applying for a Small Business Loan

· SBA Loan Programs

· The Application Case Histories.

The discussion of SBA Loan Programs is particularly good. We learn that in 1998, the SBA approved about 47,000 loans amounting to more than $10.8 billion dollars. While the SBA doesn't generally give loans to small businesses, they do guarantee loans.

Koehler explains: "[T]he 7(a) Regular Loan Guarantee Program represents 90% of the SBA's total lending and for this reason, it is referred to as the primary lending program. The 7(a) program is designed to stimulate small business activity and promote small business contribution to economic growth. Overall, the program is designed to reduce the risk to lenders who make loans and thereby increase the availability of capital for small business use."

The Insider's Guide To Small Business Loans points out, "Today, the SBA guarantees between 30-40% of all long-term loans to small businesses nationwide." So, the SBA has a substantial effect on the availability of non-equity capital to small businesses.

The Application Case Histories Chapter, gives two sample small business loan applications. One for a new start-up business. The other for an existing business.

The Insider's Guide To Small Business Loans also has several appendices. For example, Appendix A lists SBA field locations. That information is widely available on the Internet. Other appendices are more useful. Appendix B lists U.S. Export Assistance Centers. Appendix C gives a brief directory of Small Business Lending Companies. Appendix D lists Microloan Demonstration Programs. Appendix E lists Certified and Preferred Lenders. And, Appendix F lists Small Business Investment Companies.

Of course, there is much free, online information about small business loans available directly from the SBA. Koehler suggests you consider seeking assistance from the SBA and from SCORE. Koehler notes that many businesses, such as Apple Computer, Nike, and Godfather's Pizza, began with SBA-sponsored programs.

If you want a small business loan, you might want to read The Insider's Guide To Small Business Loans to improve your understanding of the lending process and to improve your chances of getting a loan.

The Insider's Guide To Small Business Loans
The Insider's Guide To Small Business Loans

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