For small businesses, the Small Business Association can be of great assistance. The SBA is the federal agency designed to help American small business owners. Most of us think of the SBA as helping us to find loans when we need them, such as for buying our first office or for growing or expanding our current enterprise. For many years now, though, the SBA has also been instrumental in helping entrepreneurs achieve state and local government rates for their businesses.
Recently, the SBA, with the support of the US government, began offering a service that it calls Rate Relief. This program offers relief from annual small business tax rates that have often been set by state governments at advantageous rates for business owners. These rates are routinely set by these bodies for the benefit of small businesses. However, the numbers of states maintaining these tax codes are dwindling every year as the result of the economic crisis. The SBA, which purchases tax default data from all fifty states, began offering this service to businesses and lenders in order to better understand the changing rates.
How does Rate Relief work? If you're currently enrolled in a credit counseling program, you may be eligible for some relief. This relief is provided on a “Voluntary Retraining Credit” basis. Under this relief program, the SBA will pay your creditors an amount equal to 10% of the excess debt you owe on your accounts. In order to qualify for this relief, you must demonstrate that you are experiencing a significant financial hardship, that you are actively working to correct this situation and that you expect to resolve this problem prior to the end of the relief period.
To achieve the best results through Rate Relief, you must work closely with your credit counselor and a certified public accountant. Together, you will develop a customized consolidation plan that will include the strategic measures needed to improve your business's overall credit score. Our experienced counselors will work with you to determine the best course of action for improving your business's credit profile. They will then work with your creditors to reduce the interest rate you currently pay, eliminate up to $50 in annual fees and penalties, reduce your monthly payment obligations and reduce your total debt. In most cases, your creditors will agree to these terms, as they recognize that a successful resolution of this problem will prevent them from being faced with the high costs of bankruptcy.
How can for small business rate relief affect my business? In most cases, businesses experience a temporary loss due to the passage of time while they are working to correct their finances. However, a permanent loss may occur if they fail to address the problem. When a business owner experiences a permanent loss, the resulting effect on their business can be devastating. In addition, businesses that experience a large amount of temporary losses tend to be highly leveraged, meaning that they have a difficult time generating new revenue. As a result, the effects of these types of losses can last for many months or even years.
How can for small business rate relief affect my personal life? Most of us realize that we can take action to help improve our credit rating. For most people, however, the act of taking action alone is not enough to get the results they need. If you find yourself in this situation, it may be helpful to contact a local credit counseling service to discuss your options.
The services offered by these organizations . . . . . . are designed to help business owners manage their money and improve the overall look of their business. A credit counseling service can provide information about managing debt, implementing a financial management plan and reducing business expenses. Additionally, these organizations can help small business owners secure the funding they need to start or expand their business. Credit counseling agencies typically do not provide bankruptcy help. However, if you do find yourself in this situation, you may be able to obtain a referral to a bankruptcy lawyer or other professional who can help you resolve the current problem without creating additional problems for yourself or your small business.
For small business rate relief, you may want to consider contacting a local credit counseling agency. There are professional experts available who can help you negotiate a payment plan with your creditors to bring down your interest rates down while your debt is repaid. These services are typically affordable and can provide the peace of mind you need to effectively manage your business finances.