Let Them Eat Cake
“Let them eat cake…” were the words supposedly spoken by Marie Antoinette when she was told that the peasants were in such a terrible state that they had no bread to eat and they were starving. This one misstatement helped to fuel a revolution which would eventually lead to Lady Marie losing her head! …literally! Yikes!
However in our little example here on MortgageAnswerGuy.com, “Let them eat cake” has an entirely different connotation. In order for the masses to experience our wonderful and delicious culinary delights, we must first finish our journey from baker to bakery!
We are close, just one more step and we are on our way. We need funding for our little venture and that funding will come in the form of a loan, and good old Uncle Sam is here to help us on our way. Everybody needs a rich Uncle right?
SBA and the American Way
Many years ago the government realized that small business in America employees more people than all of the major corporations combined. As a matter of fact, large conglomerates actually employee less than 40% of the population.
In order to keep the American economy fueled and growing our government decided to create a loan guarantee program for small business start-ups and to help small businesses grow. The two main types of small business loans are the SBA (7a) and the SBA 504.
If you are staring a business then you will need the SBA (7a). The 7a is designed as a loan guarantee program and works similar to the VA guaranteed for American veterans when they purchase a home.
How It All Works
The SBA does not actually fund the loan. You will make application with a lender and then the lender will determine if you are qualified to receive a loan. If you are qualified to receive the loan, then the lender will apply to the SBA for the guarantee.
This guarantee protects the lender in cases where borrowers default on the loan. If the borrower does not pay the loan back then the SBA will pay the lender a certain percentage of the loan back to mitigate the lenders loss.
This type of guarantee program encourages lenders to make loans to start-ups at favorable rates! It is good for the baker because it can give him the money he needs to buy the ovens, put a down payment on a lease, and have money for buying the flour, eggs and other items he needs to start the business.
The funds from the loan also give the business owner money for market, as well as a cushion to pay employee salaries. And remember, employee salaries include a little money for the baker, the owner of the business!
So Let Them Eat Cake Already!
So how do you get started? The first thing you have to do is contact a lender that works with the SBA. You can do this by sending us a request at The Mortgage Answer Guy! He does SBA loans in all 50 states!
So let’s get that bakery, that shoe store or that auto repair shop going. It is time to leave that corporate behemoth behind and let your entrepreneurial spirit sore! And SBA 7a is the loan that can get you there!
Make your request here: http://www.mortgageanswerguy.com/Ask_.html