Repair Your Credit Profile

Many places are trying hard to get more low interest Small Business Administration loans out there. This cash advance product has been promised to homeowners and business owners to help rebuild after emergencies. Offered at 4 to 6 percent interest, the SBA offers this supposedly quick loan solution to victims of floods, fires and also the Gulf oil spill.

What SBA loans are for

For “everyday use” small businesses use SBA loans to build and develop. Loans are guaranteed with the SBA. It doesn’t offer loans online but instead works with banks to provide loans. Disaster loans, also administered through the SBA, are given to both individuals and businesses who have been affected by disasters. SBA loans are strict like any other loans in that your credit is considered, and you also have to be able to pay them back. SBA loans tend to be mostly for individuals who “are having difficulty accessing other credit.”.

How many people are denied emergency cash loans

SBA emergency loan are given out soon after the emergency actually happens to people. SBA loans up to $200,000 are given to those in Massachusetts to rebuild from the flood. Businesses can take out more than that with a max of $2 million and will only have interest rate of about 2.75 percent. However, in Louisiana as many as 70 percent of SBA loan applications are being denied until BP pays out damage payments. 66 percent of those applying in Tennessee are being denied from the flood.

Finding a way to appeal decisions about your loan

Loans are being denied so quickly and at such a high rate that people are beginning to get mad. SBA loan programs are intended to help, however they can’t help if most people can’t access the credit. The ways in which you can appeal contain providing new details, showing your circumstances have changed a bit or even simply correcting the info you put down on your application. In the end, though, these loans usually end up going to individuals who show proof they can repay them — and that can be very tough to show after a disaster and within the tough economy.

Resources for the article

Tennessean

tennessean.com/article/20100729/BUSINESS01/7290344/SBA-denies-most-loans-for-flood-damaged-businesses

Boston.com

boston.com/yourtown/news/somerville/2010/07/fed_agency_to_offer_low-intere.html

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