The Community Express loan program was initiated in May of 1999 by the Small Business Administration. It was developed together with the National Community Reinvestment Coalition (NCRC) and their member organizations. This is a pilot program that is offered to selected lenders in pre-designated geographic areas. It has, for the most part, served women, minorities, veterans and business owners in low to moderate income areas nationwide.

The program includes management and technical assistance, which is designed to help increase the loan applicant’s ability to be a successful business. Borrowers must receive “pre” and “post” loan closing assistance from local non-profit and/or from participating lenders in order to participate in this program. Assistance is coordinated and sometimes even paid for by Community Express lenders.

The SBA does not normally give start up money to small businesses. However, under this loan program, some companies may be eligible to receive start-up funding. For loans up to $25,000, there is no collateral needed, which is certainly a plus for newly formed businesses which most likely do not have collateral available to them. For loans from $25,000 to $150,000, lenders may use their existing collateral policy. Loans greater than $150,000 must follow the general collateral policy guidelines that are set by the SBA.

The maximum loan amount available under this program is $250,000 with the standard SBA guarantee percent followed. Community Express loans are subject to the same maximum interest rate as any other type of SBA loan available to small businesses.

This program is worth checking out if you are a small business.

There is approximately $300 million in capital projects that is available from the Maryland Department of the Environment (MDE). In the past, most of these projects have been awarded to non-women, non-minority based, and non-small business types of companies. Times are changing in Maryland, and definitely for the good. Governor Martin O’Malley signed legislation this week, to extend encouragement of the inclusion of small, minority owned, and women-owned companies in their contact awards.

The new bill requires that good faith efforts become standard practice with the Maryland Department of the Environment. They intend to divide project components into smaller tasks, with reasonable schedules, so that minority; small and women-owned business can complete the projects. Businesses should also see more advisements in the media that will be intended to encourage these types of companies that would normally not bid on certain contracts. They will also develop a solicitation list that includes qualified companies, who will be notified of what projects are due to be available.

According to reports, this new legislation “will make full use of state and other resources such as the Maryland Department of Transportation, U.S. Small Business Administration; the Minority Business Development Agency; and the U.S. Department of Commerce lists, to identify qualified minority and small business enterprises.”

If all states would implement these policies as standard practices, small businesses would continue to thrive around the country.

In continuation to the post on Wednesday.

Small Business Administration loans are a powerful lending tool. They are often obtained by new businesses as well as existing businesses. They offer the potential lender security and therefore are much easier to obtain. The loans can be used to purchase existing businesses or purchase new supplies or equipment that may be needed to further promote a business to make it successful.

With all types of financing, business should do their homework before applying for a loan. It is important that you check your credit before applying for a SBA guaranteed loan or any type of loan. You should know your credit scores and correct any negative issues prior to approaching a bank. If you are unable to clear negative credit issues, be honest with your potential lender as to what is going on with your credit report. Have a clear business plan prepared for your potential lender and the SBA. Create a summary of your business assets as well as a list of everything that you are seeking the financing for. If you have an existing business, have your bank statements and receipts available so that your bank will be able to see that you can make the loan payments each month.

It is always stressful obtaining a loan but the SBA does make the process easier. Knowledge is power and preparedness is the key to success!

In continuation to the post on Monday.

If a business falls into any of the above categories, seeking assistance from the Small Business Administration would be a smart choice to investigate. The SBA will guarantee that 80 percent of a loans value, up to $100,000, will be paid back to the lending institution if the loan goes into default. If the loan issued is over $100,000, then the SBA will guarantee 75 percent of the loan to the lender. The maximum loan value guarantee that can be obtained is $750,000. The program that the SBA offers can help women who would otherwise not qualify for a loan.

The loans programs offered through the SBA are not always the most inexpensive loans out on the market. At times, the interest rates are at or over other commercial loan interest rates that are being offered by lenders. Business must pay a guarantee fee that is usually between 3 percent and 3.875 percent that is calculated on the portion of the loan that will be guaranteed through the SBA. The SBA loans for women offer longer amortization rates when you compare them to other commercial loans offered by banks. Those seeking fixed asset loans should expect to see financing that is offered for up to 10 years. Working capital loans will be financed for up to 7 years. Those seeking loans for construction or real estate can expect financing for up to 25 years.

Please check back on Friday for the conclusion to this post.

One of the most known types of loan programs for businesses owned by women is through the Small Business Administration (SBA). The SBA does not provide funding to companies or individuals directly. Instead they will guarantee a financial institution that the loans will indeed be paid if they are ever defaulted on by the business in question.

Women owned businesses seeking a loan will find funding easier if the loan is approved and guaranteed through the Small Business Administration. Obtaining funding is often considered to be less stressful of a process compared to using traditional channels. There are specific approval guidelines and goals that must be reached by the SBA each year. Any SBA loan that is sought must be applied for through a local, national or commercial bank.

The SBA will evaluate a potential business idea or existing business just like a lending institution would before granting approval. The program set forth by the SBA provides assistance especially if a financial institution will not approve a business loan.

A lending institution may not want to approve a loan if they feel that they would be putting their money at high risk, or if the borrower does not have sufficient collateral, or if the business is in need of updating in order for it to succeed. These situations often prove to be risky transactions that banks tend to stay away from.

Please check back on Wednesday for part II of this post.