“Time running out to apply for loans (The Herald-Mail)” plus 1 more

Time running out to apply for loans (The Herald-Mail)

Posted: 12 Sep 2009 02:31 PM PDT

Q:We understand there are certain fee-free loans available that are guaranteed up to 90 percent by the Small Business Administration (SBA). Is there a time limit to make application?

A:Better hurry. Earlier this year, the SBA set aside $375 million to temporarily eliminate loan fees and increase the agencys loan guarantee to 90 percent. So far, the SBA reports using about 55 percent of those funds; they have translated to $6 billion in loans under the 7(a) and 504 programs, according to John J. Miller, an SBA spokesman.

However, barring another act of Congress, SBA-backed loans will revert to their prior status by the end of November or December, Miller said. That means guarantees will be 75 percent to 85 percent, making it tougher to get approved for a loan because lower guarantees raise a banks risk. Additionally, a 2 percent to 3 percent loan guarantee fee again will be required. So since the SBA loan approval process can take as long as 120 days, interested businesses need to step up now.

Here are six ways to speed up the application process for SBA loans:

Update your financials Prepare at least three years of tax returns and up-to-date financial statements, including income and cash-flow statements, balance sheets and sales projections. It also is helpful to have your business plan completed and to include a marketing plan as well.

Tap a preferred lender Use a preferred SBA lender. If your current institution doesnt work with SBA loan programs, the process can take weeks longer than comparable loans at SBA-ready lenders.

Ensure the right fit Find preferred lenders that cater to businesses like yours. For example, some banks wont authorize SBA loans to startups. Others might avoid restaurants or other similarly risky ventures.

Hedge your bets To slash the risk of rejection, apply to a few lenders at the same time.

Offer more backup According to Becky Naugle, the state director for the Kentucky Small Business Development Center in Lexington, despite lower down payment requirements for SBA programs, consider putting down more or offering some sort of personal guarantee. She feels this might help to push it through faster.

Get help An experienced business adviser also can help push your companys loan through faster.

For more information, call the Small Business Development Center at 301-797-0327 or SCORE/Counselors to Americas Small business at 301-739-2015, ext. 103. You also can go to www.sba.gov for additional details, including SBA lenders by states.

Robert A. Bob Poor is a local small business owner/operator. He is chairman of the local SCORE chapter, a small-business counselor and a regular contributor to the Ask SCORE column.

Questions may be e-mailed to him at r.poor@myactv.net or by mail in care of The Herald-Mail, P.O. Box 439, Hagerstown, MD 21741, ATTN: Ask SCORE column.

This posting includes an audio/video/photo media file: Download Now

Syracuse mayoral candidate Nicoletti loans his campaign $200,000 (The Post-Standard)

Posted: 12 Sep 2009 03:17 AM PDT

by Meghan Rubado and Delen Goldberg / The Post-Standard

Syracuse, NY -- Mayoral candidate Joe Nicoletti has loaned his campaign $200,000 -- more money than Onondaga County election commissioners can remember any local candidate investing.

Nicoletti acknowledges it's a lot to put into his own campaign, but he said he needed to do it to compete with Democratic Party designee Stephanie Miner, who's served on the Common Council for the last eight years.

"I realize it is a significant gamble," Nicoletti said. "People have called me crazy to do it."

Nicoletti, a former common councilor and state assemblyman, and Miner face political consultant Alfonso Davis and former county legislator Carmen Harlow in a primary election Tuesday.

County Executive Joanie Mahoney came closest to anteing up as much as Nicoletti, said Democratic election Commissioner Ed Ryan. She loaned her campaign more than $100,000 for her county executive run in 2007.

Local Democrats, upon hearing of Nicoletti's three loans, wondered how he had that much cash.

"He had $200,000 to loan himself? Oh my God," Ryan said Friday. "Good for him."

Nicoletti left his job as city operations director in 2001 and spent years caring for his elderly parents before they died. He said he drew the money from his personal accounts. He took no loans, he said.

The campaign has received enough commitments from supporters to convince Nicoletti he can recoup the loan, he said. He loaned $100,000 to the campaign in two payments this month. He put in the other $100,000 in August.

But where did he get the money?

Nicoletti said he was an original investor in Nextel Partners, which was sold to Sprint in 2006.

"When that sale went through, the partners and the major investors did very well," he said.

Nicoletti said he's been vigilant about saving money and investing. He invested well in stocks during the technology boom of the '90s, he said.

A series of full-time jobs and consultant gigs helped his finances in the mid-1990s and after 2001, Nicoletti said. Those are the years he wasn't working at City Hall.

Included in his work history are multiple consulting jobs for Nextel Partners, Central Parking and TVGA Consultants. He's also had full-time employment with Loretto, Nextel and Johnson Controls over the years. He is not now working for any companies, Nicoletti said.

Including his loans, Nicoletti has raised about $528,000. That beats Miner's $398,000, which includes no loans.

"It takes more because I don't have the platform that she's had," Nicoletti said. "She's been in office. I left public office some nine years ago."

Nicoletti said his loans have already been spent. They went toward staff salaries, rent, commercials, mailings and lawn signs. He hasn't had any polling done since one that was completed more than four weeks ago, Nicoletti said.

Miner has given $5,400 to her campaign. Her husband, John F.X. Mannion, gave $7,500. The campaign has taken no loans.

Republican candidate Steve Kimatian loaned himself $85,000 for his primary run. Kimatian is a lawyer and former media executive. GOP designee Otis Jennings accepted $80,000 in loans from friends and business acquaintances.

If Nicoletti ends the election in debt, he can leave it open in his campaign account for as long as he wants, said Republican election Commissioner Helen Kiggins. Repayment of personal loans has no time limit, she said.

This posting includes an audio/video/photo media file: Download Now

Fast loans or credit?

Saturday, September 12, 2009