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Tura
RealPoor Guru
Joined: 29 Oct 2003
Posts: 4865
Location: Raleigh, NC
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 Posted: 09/08/05 - 12:24 Post subject: SBA & SBIC for business funding?
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http://www.sba.gov/INV/overview.html
I was wondering if any entrepreneurs or small business owners have had experience in dealing with SBIC for funding/starting their own business.
I recently went into business with 3 others and started a mortgage company. Since most of the funding was out-of-pocket, we don't have alot of collateral to offer a bank for a business loan. I came across this organization last night in my business principles class and thought it would be worth looking into.
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Nahualli
RealPoor Master of Posts
Joined: 11 Oct 2002
Posts: 8461
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Posted: 09/08/05 - 12:44 Post subject: Re: SBA & SBIC for business funding?
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| Tura wrote: | http://www.sba.gov/INV/overview.html
I was wondering if any entrepreneurs or small business owners have had experience in dealing with SBIC for funding/starting their own business.
I recently went into business with 3 others and started a mortgage company. Since most of the funding was out-of-pocket, we don't have alot of collateral to offer a bank for a business loan. I came across this organization last night in my business principles class and thought it would be worth looking into. |
OMG you f*****g anti-American piece of shit! How DARE you include a Spanish version of your site? Don't you know this is AMERICA?
f****r.
-Nah-
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Alerik
Sir Postalot
Joined: 13 Oct 2002
Posts: 1375
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Posted: 09/08/05 - 12:47 Post subject:
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Couple of things.
My dad had a NPO that was directly under the SBA. His business facilitated literally billions of dollars in loans to small businesses across the midwest. It is a service that works, look for something in your state called a Development Finance Corporation or something along those lines. I could find the one in your state probably quickly, but I am lazy and have classes all afternoon.
Secondly, I dunno why you are just opening a mortgage company now. You are about 5 years late. And not to be rude, but the interest rate is going to be raised continuously making it that much harder for someone like you to be starting up now (Unless you are going to be in Las Vegas, even then, heh). Established companies will become much more cutthroat and you will have little to no chance to offer better rates.
Unless you have some interesting things to back you up, you probably wouldn't even be able to write up a business plan effective enough to achieve the financing you want.
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Tura
RealPoor Guru
Joined: 29 Oct 2003
Posts: 4865
Location: Raleigh, NC
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Posted: 09/08/05 - 13:26 Post subject:
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| Alerik wrote: | Couple of things.
My dad had a NPO that was directly under the SBA. His business facilitated literally billions of dollars in loans to small businesses across the midwest. It is a service that works, look for something in your state called a Development Finance Corporation or something along those lines. I could find the one in your state probably quickly, but I am lazy and have classes all afternoon.
Secondly, I dunno why you are just opening a mortgage company now. You are about 5 years late. And not to be rude, but the interest rate is going to be raised continuously making it that much harder for someone like you to be starting up now (Unless you are going to be in Las Vegas, even then, heh). Established companies will become much more cutthroat and you will have little to no chance to offer better rates.
Unless you have some interesting things to back you up, you probably wouldn't even be able to write up a business plan effective enough to achieve the financing you want. |
Wow thanks for the pep talk! (haha) We actually have a very aggressive business plan to compete with rates and the other companies here in Raleigh. We take more of a educational and service oriented approach to our clients which in the end builds our community around us.
We have also built relationships with attorneys, appraisers, underwriters and even realtors which makes the date of our closings a lot sooner than our competition. We are right now implementing a lot of new marketing ideas which I don't think anyone is using right now (ideas id rather not share). What I can say is they are pretty out of the box and innovative to the areas we are working with.
Interest rates for the most part still aren't too bad when compared with the historical rates. The main thing we wanted to figure out before we started this was "What can we bring to the market right now that would be refreshing and effective for our clients?" Almost all of our competition right now is pushing no closing costs and/or fees on the back. While these are good things they can sometimes come back to bite the customer in the end with a much higher interest rate. When people leave our closing table they go knowing what they got and knowing it serves their best interests. Trust is a key factor in this business and always has been.
I'll check into that Development Finance Corp thing you mentioned earlier. Thanks.
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