Government Financing Programs
SBA Financing Programs
As a result of Congress’ approval 9-28-2010 of HR Bill 5297, the opportunity for financing and growing a small business has never been better during these economically challenging times. Below is a snap shot of key points to consider.
ELIGIBILITY
Based on the changes in the government size standards in order to be classified as a small business, now approximately 95% of all companies (32,000,000) in the United States qualify. The new standards are:
- tangible net worth of the company is less than $15,000,000
- net profit is less than $5,000,000 for the past two years
KEY FINANCING FEATURES
- PROGRAM SBA 7-a- Financing up to $5,000,000
- operating capital, inventory, accounts receivable financing – up to 10 years
- furniture, fixtures, equipment – up to 15 years
- owner occupied real estate – up to 25 years
- interest rate negotiable
- government loan fees temporarily waived
- personal guarantee
- PROGRAM SBA 504- Financing up to $11,000,000
- real estate – up to 25 years, acquisition, expansion, refinancing; in special cases the real estate does not be owner occupied- example mini warehouse storage units
- equipment – up to 15 years, new
- two notes- a government CDC note and a Bank note
- interest rate: government CDC portion has currently a 6% fixed for the term of the loan; subject to change; Bank portion’s rate is negotiable
- government fees are included in the government loan interest rate
- personal guarantee
If your company needs SBA financing, our advisors are standing by to meet with you to assist you with the process. You may contact us at 800-381-7498 (office) or by e-mail.
Information for Business Owners
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Although small businesses are the largest contributors to the economy, they experience a failure rate of 80% during the first five years.
Half of the survivors fail over the following three years. The major reasons for failure are lack of sufficient capital and business knowledge, insufficient revenues, and no exit planning.
CPA Programs
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Like all businesses, a CPA’s practice has a target market and needs to differentiate itself from the competition.
For over 30 years FMC has been growing business including CPA practices providing value added services.
In your practice’s strategy, if you are not already targeting the small business, we strongly suggest you consider it.
If you already do, then we want to help you grow your practice.
Banking Solutions
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FMC Financial Services, Inc. (FMC) serves both banks and small business owners. Each is benefited mutually by growing together.
Small businesses account for over 55% of the GNP and exert a powerful impact on the local economy.
Without the support of local banks, small businesses would not have sufficient capital for growth.