Options for Small Business Capital
Increasingly Important

Today’s volatile interest rates and related issues are a big problem for small businesses, who generally have relatively large capital needs combined with a weak position for traditional requirements for loans – things like a lengthy, successful history and large assets.

Fortunately, small businesses do have options, including SBA loans like the 504 administered by Midwest Small Business Finance, a nationally recognized Certified Development Company. These 504 Loan programs are extremely popular for several reasons.

Real Benefits

A big factor in their popularity is that 504 Loans help borrowers leverage bank money by using the 504’s low-interest, fixed-rate loan. At the same time, the 504 program gives the bank a favored position that makes it more attractive by reducing risk. This can dramatically increase the odds the bank will take on their portion of your loan. Under the 504 regulations, the small-business borrower must put up 10 percent while the bank puts up 50 percent. The remaining 40 percent is provided by a Certified Development Company like Midwest Small Business Finance.

These 504 Loans can be up to $5 million and must generally target things like real estate, buildings, and machinery – just the type of expensive purchases small businesses usually need for growth.

Good Source

MSBF is a nationally recognized certified development company, authorized by the Small Business Administration to administer their 504 and other small business-friendly loans.

Although the program has its share of paperwork, one of the main jobs of MSBF staff is helping reduce that hassle. In fact, MSBF was founded as a non-profit in 1982 by the Clay County Economic Development Council with the goal of growing the economy and creating jobs, not making a profit from interest rates or service fees.

For more information, call (816) 468-4989 or email info@clayedc.com.