Wednesday, November 3, 2010

Small Business Loans

Small Business Administration (SBA) loans, with their low cost and flexible terms, offer an “excellent choice” for small business owners looking to refinance their existing real estate or to acquire a new property.

Based on CIT Group Inc.’s survey results, one-fifth of respondents indicated that SBA loans were designed to help business owners with less than perfect credit. Small business owners indicated that SBA loans allowed borrowers to make a lower down payment, have a lower monthly payment, and pay off the loan over a longer time period.

But CIT says few are familiar with recent small business legislation and its benefits. Over half – 52 percent – of small business owners indicated that they did not know what the Small Business Jobs and Credit Act was or how it might impact them as small business owners.

The company says the legislation sweetens SBA loan terms for both lenders and borrowers, eliminating borrowers’ fees, raising the loan guarantee to 90 percent from 75 percent, and increasing loan limits.

U.S. small businesses have a significant impact on the American economy. CIT says they employ nearly 59 million Americans – approximately half of all private-sector jobs – and collectively account for more than half of the country’s non-farm private gross domestic product