I saw this article and thought it would be of interest to some of my colleagues:
NAR: Agents and brokers can get SBA help
WASHINGTON - Oct. 1, 2009 - The U.S. Small Business Administration (SNA) has clarified its rules, saying that individual real estate practitioners and brokers are eligible for the agency's loans, which many could find helpful during tough economic times.
According to analysts with the National Association of Realtors, brokers may apply for America's Recovery Capital (ARC) loans, Section 7(a) loans, and Section 504 small business loans.
An initiative of the Obama administration's economic stimulus package, the ARC program offers no-interest, no-fee, deferred-payment short-term loans up to $35,000 that can be used to make payments on or replace existing business debt.
Under the 7(a) Guaranty Loan Program, individual practitioners can use money from participating lenders for working capital or debt replacement. Intended for long-term needs, the maximum loan amount is $2 million.
The 504 Loan Program, facilitated through community agencies, is ideal for individual practitioners expanding their business and in need of money to pay for fixed assets.
For more information, visit the Small Business Administration website.
Source: Realtor (10/09) Vol. 42, No. 9, P. 10; Freedman, Robert
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David Serle
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Thanks for the post had no idea about the changes will have to look into this!
Thanks for sharing this. I had seen something on this, was busy at the time and then forgot where it was. It would serve many REALTORS well to consider this loan as a business builder. And being specific, it means developing a new farther reaching marketing plan, getting your presence fully intergrated with internet sites and services. Usually most need professionals to do this for them and they are on the expensive side. Getting this loan and redeveloping as a professional in the real estate business would serve many many REALTORS well. Most won't do it because they forgot a long time ago that they are in business. They don't associate the business aspect with listing and selling real estate. Big mistake, for the future will not be as forgiving as the past has been.
This is an interesting topic. I'd love to get an SBA loan to consolidate my high interest credit cards (a result of Bank of America's greed), but they're surely going to want to include my residence as security. What they should be offering is free bankruptcy counciling and legal representation.
Skye, thank you for your comments.
William, I agree it really is a great way to spearhead your business. Whether you need to incorporate a marketing plan or what have you it is a good way to help promote your business through a loan.
Gregg, thank you for your comments. I believe there are places where you can get bankruptcy counseling and/or legal representation with minimal cost or free.
Interesting! I bet this information can be useful to many people struggling with their real estate business.
Irene, thank you for your comments. I agree this may help quite a lot of people.
This is somethiing I've been specifically thinking about looking into. There is always opportunity in times like this, but most of us don't have the reserves to pursue them. A small loan could be the difference between barely surviving (or not surviving at all) and thriving! Thanks for the info!
Shelly, thank you for your comment. I believe many of us could use a little help these days. Although it has gotten a lot better recently this would dbe an option to many of us who just need a little help.