Business loans can help you finally start that business you have been dreaming of for years, and a loan is often an essential step toward making a business a reality. There are so many business loans that it can become confusing when deciding which loan to use. Being aware of what business loan options are available might simplify this process. You can also talk to a Kingsport bankruptcy lawyer if you are struggling with bankruptcy-related issues.
SMALL BUSINESS LOANS
One of the most well-known types of business loans is the small business loan. A small business loan is specifically designed for small businesses. Larger companies may not benefit from this type of loan. To qualify for this type of loan, a business must be:
- Matching the SBA size requirement
- Not have other sources of finance
- Has strong potential to repay the loan
A loan lender is less likely to provide small business loans to businesses that will struggle to pay back the loan. To obtain a small business loan, be prepared to defend the potential success and profits of your small business. Having a business plan and realistic business goals helps.
Small business loans can last up to 25 years for real estate. They can last seven years for working capital. Interest rates vary depending on the loan you choose and the lender you borrow the loan from. Credit score history may also determine the type of interest rates you are offered.
OTHER TYPES OF BUSINESS LOANS
There are several other types of business loans to choose from. Business and industrial loans are offered to businesses with the goal of improving employment and economic opportunities. The business owner will need to prove that their business will improve the economy, environment, or employment.
The military reservist economic injury disaster loan program offers financial aid to businesses that suffered financial challenges from active-duty employees. This employee must have been called to duty for the military and this must have financially impacted the business.
Microloan programs are for businesses that are newer. These business loans are smaller with the purpose of starting up a small company. They may also be used for growing small business issues and non-profit child centers.
There are also business loans for businesses going through financial or physical disasters. The economic injury disaster loan is designed for businesses in need of repairs or rebuilding due to economic injuries. Small or private businesses could be eligible for this loan. Non-profit businesses in a disaster-declared country may also qualify for this type of loan.
The amount of money offered with an economic injury disaster loan depends on how much the business needs to recover. A physical or economic disaster can warrant this type of business loan.
BANKRUPTCY LAWYER IN KINGSPORT, TN
Facing bankruptcy can be a terrifying financial ordeal to go through. You do not have to deal with the complexities and stress of filing for bankruptcy alone. Contact us at Tom Bible Law at F:P:Sub:Phone} for a consultation today. Our Tennessee bankruptcy attorneys might be able to help you escape your financial situation. We serve clients in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.