Who Makes More Money Realtor Or Loan Officer

Loans and Grants for Small Businesses

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Small businesses are just as important as the headline-grabbing moneymakers we've all heard about. These family-run firms often trade out of homes or small units. These are companies with a handful of employees, sometimes just one man and a truck, that are the backbone of American industry. According to the SBA's website, in 2010 there were 27.9 million small businesses in America and 52 percent of those were run from people's homes. Just over 73 percent were sole proprietor firms so there are a lot of self-employed people in America. Where do they go when they need money to expand their business?

Small Business Association Loans

The US Small Business Association (SBA) offers assistance to company owners including free business counseling, but you can also use them to find a loan. If your business is expanding or if you're trying to get your firm off the ground, a loan through the SBA is a good idea because they reduce the risk for lenders which means they can take a chance on new businesses. Most SBA-guaranteed loans have lower rates and fees than bank loans. Some don't need down payments and don't ask for collateral either.

Federal Government Contracting

There are a bunch of regulations that small businesses have to follow if they want to compete for government contracts and the SBA can give guidance on those. For example, you'll need a DUNS number but before you can get that your firm will need a legal name, a headquarters address and various other things that help Dun and Bradstreet identify you as a business. A NAICS code is another requirement. This code tells the government if you truly are a small business or not. Most manufacturing firms with fewer than 500 workers, and non-manufacturing companies with less than $7.5 million in annual receipts will be eligible for government contracts reserved for small businesses.

Disaster Loans

If your business has been hit by a natural disaster, you could get a loan through the SBA to help you get back on your feet. They helped company owners get back in business after Hurricane Maria in 2017 and they continue to offer assistance whether the disaster is nationwide or localized. These disaster loans are low-interest so homeowners and businesses affected by major incidents can cover the cost of physical damage to property and equipment, and they can also use the money to cover small business operating expenses.

Federal Emergency Management Agency

A Federal Emergency Management Agency (FEMA) grant is another option for individuals and businesses struck by natural disaster. If you get money from this government fund, it has to be spent on recovering from a disaster. It's supposed to be used for home repairs, rental expenses, medical care, cleaning, moving and storage. FEMA has been known to audit how the money was spent and they've also asked individuals to repay their grants when they've found that the money wasn't used as it was intended.

How to Qualify for a SBA Loan

There's no magic to getting a loan with the SBA. Their lenders follow the same process to access your creditworthiness as other lenders. You'll need to build up a good credit history before applying, and then when you're ready, make sure you gather financial data about your business and come armed with a strong business plan that will help you recover the money you're borrowing. You may need to provide collateral, particularly if you're looking to borrow a large sum of cash.

Microloans

You can get all the information you need about SBA loans and FEMA grants online so you should check them out first if you think your circumstances fit their conditions. If not, where else can you go for a loan? You don't need us to tell you that banks offer loans but you might not be aware of other ways of getting money like microloans. This peer-to-peer loan can be applied for online. If successful, you'll be borrowing lots of small amounts from lots of lenders who are normally individuals wanting to turn a profit on their savings. As there are many lenders with small amounts of money at stake, you might be able to borrow more this way than through traditional methods.