West Points

Tuesday, January 11, 2011

There's a no-collateral working capital SBA loan for small businesses! Seriously?

Yes! Ever since the Jobs Bill passed back in September we have been receiving phone calls from clients and community members interested in the new funding available from the bill. Information has been slowly coming down the pipeline but finally, there is a new loan fund established and ready to help small businesses; the Community Express Loan Program.

The new Community Express Loan fund is available to both existing AND start-up businesses. It provides loans from $5,000 - $25,000*, collateral free with interest rates ranging from 7% to 8%. Additionally these loans can be processed as quickly as 4 week after the loan package is complete and submitted.

This is definitely the most flexible program I have seen since I have been working with businesses in the county, and it is a great opportunity for local businesses and start-ups.

Some of the eligible uses include:

• Hiring a new employee

• Purchasing Inventory

• Business construction up to $10,000

• Working capital

Note, though the funding is flexible in its use, it still requires a plan showing that you will be able to pay the loan back within the stated terms set. Additionally, there are some restrictions to the funds. For example, they CANNOT be used for businesses engaged in real estate, agriculture, fishing, medical facilities, mining, religion, or gambling. (see fact sheet link for full list)

West Company does not engage in lending for the SBA, but we do assist our clients through the process of developing their business plans and preparing loan packages. Additionally we offer classes to help business owners write their plans and learn the basic skills they need to be successful. We also maintain a relationship with both banks and alternative lenders to help our clients find the best loan option for their business. If you would like more information on consulting and classes available at West Company visit our website.

For more information on the Community Express Loan including what is eligible and ineligible, check out the Borrego Springs Community Express Loan Fact Sheet:.
*Note: Businesses located in Low Moderate Income (LMI) designated areas are eligible for up to $50,000.

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