If you have been considering getting one of the many small business loans out there, you have probably been asking yourself will small business loans be forgiven? It is an excellent question and one that deserves some serious thinking about. But before I get into it, let me just say that if you are asking this question, you are most likely not in a good position to get your loans approved right now.
There are many reasons for this, but the number one reason is pretty simple. Banks don't want to take any more risk on your business. They are all too aware of all the lawsuits, and red flags that have been flashing on their screens in the past couple of years. They are also aware that you have gone through the mill and you have made mistakes, which could potentially cost them a lot of money.
However, this does not mean that you can't get small business loans. You just have to find the right lender. You cannot simply ask your local bank if they will give you a loan, because they most likely will not. This is because the banking community as a whole has become quite cautious of lending money to people that have been through a bankruptcy.
So, what is the alternative? You have to look to the government. Yes, the government has enacted some major loans that will forgiveness your debt. These include some of the mortgage rescue programs. The Federal Small Business Administration is offering a loan program that will forgive up to 70% of your debts. However, you must qualify, and this qualification process can be very tough.
One of the reasons why it can be difficult to qualify for these small business loans is because the qualifications are extremely strict. The SBA claims to have reviewed over one million small business loans and found that just two percent of the loans approved were disqualified due to poor qualifying criteria. If you are trying to start a business, you can rest assured that these loans are out there for you. The reason they are so strict is that they want to make sure that the people that they are giving the money to are capable of paying them back.
One way to find out if you will qualify for these types of loans is by checking the government website. Here you will find all the information you need to know about qualifying for these loans and also find the loan application form. Although these loans are not widely advertised, the SBA does advertise them since they understand that the business world can be somewhat strange at times. This is why they have set up this website in order to make it easy for you.
Do not take a traditional route when searching for small business loans. You will probably discover that this will be a very expensive . . . . . . endeavor. There are too many banks and lenders out there that do not lend money to new businesses. Even if they do, the interest rates will probably be extremely high. The good news is that by checking government websites you may discover that you are eligible for these loans, but you may also discover that the interest rates are quite high.
The next thing you should consider is what your goals are for using this loan. Will you use this small business loans for expansion? Are you looking to purchase additional office space or buy a bigger truck? Do you need the loan to pay for new equipment or furniture? Are you trying to lower your monthly payments and get a better interest rate? By determining your goals before applying for this type of loan, you will be able to better determine whether you will qualify.