OK, let’s start with this: governments everywhere are a really easy target when it comes to, well, just about anything to do with inefficiency, bureaucracy and red tape.
Now, their red tape is affecting small and medium sized businesses looking to get funding for their business.
The SBA has published what it declares is a “simple but practical guide” for business owners who are preparing to apply for an SBA-guaranteed small business loan through their bank.
Here are the highlights;
- The bank must approve of how the funds will be used, and the criterion they use is essentially up to them.
- The borrower must be deemed by the bank to be “of good character”. Again, the criterion for determining this is up to the bank.
- The borrower must supply “strong collateral” that includes both business and personal assets.
- Borrowers must have personal equity in the business.
- Borrowers must provide a range of documents with their application, including (but not limited to) information on their: personal and business credit history, personal and business financial statements, projected financial statements, a “strong and detailed” business plan, cash flow projections for at least a year.
- Borrowers must provide personal guarantees from all principal owners of the business.
- Incomplete applications will be denied or “face unnecessary hurdles”.
Now, we appreciate that the SBA is helping some small businesses access funding, as well as provide useful educational resources and tools.
However, they might want to revisit their understanding of the word “simple”, because in the REAL SMALL BUSINESS WORLD, the above is anything but simple!
At Mulligan Funding, we come from a small business background – and so our definition of “simple” is somewhat more down to earth and realistic. That’s why borrowers who apply for our small business loans:
- Can submit their application online, and complete it in a matter of minutes.
- Do not have to provide us with cash flow statements, business plans, or other documents of that nature.
- Do not have to secure their loan with collateral.
- Can use the funds for any purpose they believe is beneficial.
What’s more, we assess applications in 48 hours or less, and upon approval and acceptance, we can have the funds in our customer’s accounts in a matter of days. In our world, that’s what simple means when it comes to small business loans!
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.