Companies will endure SBA red tape if it leads to cash - Baltimore Business Journal:

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So the laid-off bond trader is dipping her toes into theretaill world, with the hope of openingh K Staton Boutique. The clothing store would caterfto plus-sized women, from size 14 to 30, fillinf a niche that will hopefully help it avoid the fate of so many storees that have closed during the recession. But the Catonsville resident needs $100,000 in She is hitting up area banks fora U.S. Smalpl Business Administration loan. Aftert being turned down by one bank, she is waitinvg to hear from two others.
Greer is like other entrepreneurws who are turning to the Small Business Administrationj as tight credit has made lending from privatse investors and regular bank loans SBA lenders, including some traditional banks, say there has been an upticl in interest in SBA loans sincew the agency received federal stimulus mone y that made the loan program more attractivee to small businesses. It eliminated fees on its basic which can save thousandsof dollars, and increased the maximuk guarantee on a loan from 85 perceng to 90 percent. “Ic you put a lot of moneu behind something, it will get easier,” said Todd CEO of Mindgrub Technologies LLC.
The Ellicotg City firm receiveda $25,000 SBA line of credir in March from , the region’s largesy SBA lender. “I know the SBA is gettin a lotof support.” Consequently, entrepreneur like Greer are hopeful they can get the monety to start a new company. Others, who have existinh businesses, are turning to the SBA as a lifelins to keep theircompany afloat. But don’yt expect to walk into a bank and come out with a wad of Lenders and business owners say that you need to be armed with plentty offinancial documents, collateral and good credit Take for instance, Steve Ko, who last month receivexd a $50,000 SBA-backed loan from to open Oakey’d Grill.
Restaurants are risky ventures that can be tough to fund even in good But bank executives say they loane the money forthe pit-beerf sandwich shop because Ko maintains a good credig rating. He also knows something about the industry as his family hasoperatexd restaurants, delis and other businesses in Howard Counth for 30 years. Experience makes you a better candidate for a Banks also take a look at your For SBA loans greaterthan $50,000, bankxs want 100 percent collateral for a startup, said Craigy J.
Panos, a business counselor at the Marylanr Small Business Development Center in So if you want toborroew $100,000, you should expect to have $100,000o in collateral, most often your That can be difficult for many business ownerx whose home values are dropping. SBA lendersz are scrutinizing loans more than ever because of thecrediyt squeeze. It can take three to four months to get a loan Panos said. Prepare to supply bank documents, your businesws plan and details on how you will spendrthe money. David Janocha did not mind fillinhg out the 25 pages of SBA formas to getthe $75,000 SBA-backed loan this year for his electronic fingerprinting company LLC.
He applied for and receivede another $25,000 line of credit in March through inGlen Burnie. “If you are not an organizeds person then it would bea hassle,” said Janocha, who keepw all of this financial documents in ready-to-access files. “I know where every dollar