Because of the recent financial crisis, which dragged on for several years, banks are increasingly refusing to lend to small business, especially if it is a new client. Statistics show that from 2008 to 2010, the loans to small businesses fell by more than 20%, and the figure is increasing. Here come to the aid NGOs can relax to 20,000 dollar loan for a startup business.
“The problem is that because of the crisis banks have become extremely cautious, especially for new customers, “said Mr. James, who was in America for a year and a half. Like any entrepreneur, he has a problem with borrowing, nothing that Bulgaria He had his own business. “The main requirement of banks was a credit history for at least a minimum of 3 years back, stability and guarantees that I can not offer such a short period of time, ” said another Hildy.
Just a week and a half he received a loan to start the project in the field of business planning and product development, but … not by a bank.
“I originally launched and a colleague, we are now about 5 people. Then we went to look for option through which to finance their business, “said Mr. Hildy. For him, this option is a non-governmental organization “BBL” in Chicago that specializes helping small businesses. “People who can apply for a loan with us, we must have social security number (SSN), if they are legal status or IT number issued by the IRS “, explained Mrs. Daniels, which is a credit specialist in the field small business.
Many newcomers immigrants in America do not know that to start their own business need not have legal status in this country. For this purpose it is necessary to draw the new arrivals tax number or tax ID from the immigration authorities to be able at the end of the year to declare their income and pay taxes accordingly.
Customers of Mrs. Daniels in “BBL” are mostly immigrants from Europe to which it helps to start their own business. Mrs. Daniels advises anyone who wants to start their own business, to have a well prepared plan and a good credit history.
For newcomers who do not yet have one, also have a way to get a loan. “We need at least to have dealt with this before, know what it is. Also, the first thing every newcomer should do is to open a bank account and begin accumulating credit history even with a small credit card that may be secured, “said Mrs. Daniels.
Usually banks do not lend to existing business and do not work with people who have declared bankruptcy. The company “BBL” consultation on the preparation of a business plan for action is free, it can be in Bulgarian language, if you have a problem with the language and applying it online, as two working days you will have a result whether you are approved or not.
Small business loans vary, but “BBL” start at $ 500 to $ 20,000 for start-up businesses and to $ 50,000 for existing companies. More than 50% of the working population in America is employed in small business and each month start over 540,000 new business projects.