As the world gets ready for the winter, business owners find themselves in a different position.  It is very difficult to be a small business owner today. With the technology and mobile phones, it has become very difficult for small business owners to filter the amount of information they are constantly receiving.  Junk emails, robo calls, notifications, and so forth. These distractions have become a major problem when it also concerns finance.Most small business owners are misinformed about their financial options. There are nearly 10,000 lenders across the nation, originating every type of loan.  So it isn’t that there are limited lenders, but more of too many lenders.

Let’s look at SBA 7a.  SBA 7a program was created to give the lender a guarantee with the full faith of the US government on 75% of the loan if the small business owner defaults.  This program is very popular for many small businesses, and there are over 100 lenders local and nationwide who can offer you an SBA 7a. The issue comes to pricing.  Today SBA 7a rates are much higher rate than conventional loans and even higher rates for special purpose properties like: Hotel, Gas Stations, Car Wash, Bowling Alley and others.

So what is all the fuss about? Well, it’s the interest rate between the SBA 7a vs Conventional Loan.  There are 2.5% interest rate difference for the lower end and on the higher end there is a 2% gap. This is very significant for special use property businesses like: Hotelier, Gas Station Owner, most of the special use properties.  This is the reason why, new money, meaning new buyers were priced out of the market. Furthermore, SBA 7a has been tightening their lending guidelines as well.

So, what does it mean for you the business owner?  Working with a firm who has your best interest in mind for your financial needs.  One who will gather your information and underwrite your loan request so that we know exactly what you need.  Then we will work with you to find the lenders that make sense for your situation. In this case we will see if the SBA 7a is the right fit and what other options you may have.

CH Capital Partners, LLC – we are different and you’re going to like that about us!