New Business Financing
A reader recently called my attention to a small business loan program offered through Sam’s Club. Sam’s Club is not a lender, but they are working through Superior Financial Group, the largest Small Business Administration (SBA) lender in the U.S. (number of loans).
Superior Financial Group makes small business loans that are guaranteed through the SBA. They loan amounts from $5,000 to $25,000, with interest rates as low as 4.25% over the Wall Street Journal published prime rate. The current interest rate starts at 7.50% and increases slightly with smaller loan amounts.
To qualify for this lending program, you need to meet the following criteria:
- Your business can be either a startup or already operating, but it must have a business checking account and a good credit standing. A nice feature of these programs is that no collateral is required.
- You also must have a good personal credit standing.
- You must be a member of Sam’s Club (to receive the low interest rate and loan fee discount).
- You must need a minimum of $5,000, and a maximum of $25,000 for operating capital for your business.
- You must be a “for profit” business.
To investigate this loan program further, go to the Sam’s Club web site and click on “Services”, then on SBA Small Business Loans. Follow the instructions and apply online, or by phone. The lender will process your request quickly and you will hear back within a day or two. Good luck!
The SBA guarantees these small loans through the Patriot Express and Community Express (“Community Reinvestment Act”) programs. You can learn more about these, and other, SBA loan programs through this special report.
In the event an SBA loan does not work out for you, there are other small business financing options—check out this report on Creative Business Financing. There are many ways to finance a business…it just takes creativity and perseverance.
In fact, if you have enough passion and perseverance, you could even Bootstrap your business. Be aware however, that this method only works for the highly determined person who can discipline themselves through the process. Here is a report on a typical scenario for Bootstrapping.
I would be interested in hearing from anyone who has obtained a business loan other than through a bank.
*
My Book
Any business crisis can be managed before it becomes fatal . . . Be Your Own Turnaround Manager tells you how. Click here for more information.