Mannerheim Posted July 5, 2005 Report Share Posted July 5, 2005 Hello,I've been doing great cleaning my credit since January (both wife and I are up about 100 points). My plan would've been on track for doing some financial reorganization, if it weren't for Equifax deleting 9 good accounts (and then the other two bureaus following suit). As a result, I'm a little shy of where I wanted to be, and will probably have to add some new accounts to make up for all of the great lost ones.In the meantime, I'm looking for a personal/business loan in the $30,000-50,000 range.I have a co-signer, if needed.Any ideas?THANKS! Link to comment Share on other sites More sharing options...
Methuss Posted July 6, 2005 Report Share Posted July 6, 2005 You can generally get a SBA backed loan from a bank. The method varies a bit from institution to institution. Charter-One has a pretty fair SBA program. For up to $30,000 you can usually do it on the SBA fast-trak program which only requires that you have a credit score of at least 640. All SBA lenders will require that your business checking account be held at their institution. For more than $30,000 you will have to go with the full documentation application which requires a written business plan with a full 5 year projection.SBA loans are backed by the government at 80% but are still issued by lenders so you have to meet their lending guidelines regardless. The government simply promises to pay the bank 80 cents on the dollar if you default. SBA loans are personally guaranteed unless you incorporate, so be aware that if the business plan fails, you will still have to pay the loan off yourself (at least 20% of it) Link to comment Share on other sites More sharing options...
Mannerheim Posted July 6, 2005 Author Report Share Posted July 6, 2005 Thanks Methuss!If we go a $30,000 SBA loan, do you know what the requirements would be? Lower credit score? Stated? Turnaround time?Thanks! Link to comment Share on other sites More sharing options...
Methuss Posted July 6, 2005 Report Share Posted July 6, 2005 You generally have to be above 640 on your FICO score to qualify for an SBA loan. The SBA fast trak program gets you an answer within 48 hours. The fast trak program is a no-documentation program. When I applied, all I had to do was fill out an application...I got turned down because my FICO was 630 at the time and that's how I found out what the minimum score they look for is. Link to comment Share on other sites More sharing options...
Mannerheim Posted July 6, 2005 Author Report Share Posted July 6, 2005 Hey Methuss,I REALLY appreciate your help.Do you recall if there are any particular requirements, i.e. "must create 'x' jobs", "be in a rural or low income area", or something similar?Could I have someone cosign?Thanks Link to comment Share on other sites More sharing options...
Methuss Posted July 6, 2005 Report Share Posted July 6, 2005 There were no demographic requirements at all.You really don't do "cosigners" in business. You have partners. They may be silent partners, but that's how it works. You should have a partnership agreement with whomever is lending financial support. It is really a bad idea to get into any partnership arrangement without a written agreement laying out the terms of the partnership. The last thing you want is to become the next Bill Gates and have your silent partner hitting you up for half when all he/she did is sign on the original SBA loan. Link to comment Share on other sites More sharing options...
Mannerheim Posted July 6, 2005 Author Report Share Posted July 6, 2005 Thanks! Link to comment Share on other sites More sharing options...
Mannerheim Posted July 6, 2005 Author Report Share Posted July 6, 2005 Hey Methuss,Sorry to bother you again, but hopefully we're helping others in the future!Do you think that if one partner is 640+, and the other is 640-, that it would kill the deal? Link to comment Share on other sites More sharing options...
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