Loan Application

Rental apartments are back in demand, financing for hotels and motels is loosening up a bit and investors are stepping off the sidelines with wads of cash to do deals.

Passion and a great idea are not enough to start a business. In my last two columns, I wrote that you must demonstrate enough predictable cash flow an...

Both SBA and conventional lenders want to lien your home. In addition to securing your equity, lenders believe that you will work harder to make the business successful when your home is at risk.

Capacity, capital, collateral, credit, and character are the "Five Cs" that loan offers learn in Lending 101. But to most small-business loan applicants in need of money, it is an esoteric and arduous exercise.

Lenders, brokers and borrowers beware. The Small Business Administration's Inspector General is looking for errors made during the origination, closing and servicing procedures.

Even though the cover letter is rarely thought of as a business-plan document, it begins the process of selling your concept to the loan officer and finance committee.

Now is the time to think about dusting off your old business plan as the economy improves. A business plan is required to obtain a loan or venture capital. It is uniquely designed as a sales tool to get financing.

I lost a friend last week. Innovative Bank of Oakland, Calif. is kaput. Just like with other bank failures, the regulators swooped down on the floundering bank after the stock market closed on Friday.

Falsely promoted business plans and "plug-in-the-number-templates," will not help you get financing. There are no shortcuts to circumvent the lengthily process of doing it the right way.

Borrowers who were seeking creative financing raised my antennae when I was in the lending business.

Although small business, economic stimulus lending is being widely criticized, $5,000 to $25,000 is available to you if you have a reasonable credit score and meet basic underwriting criteria.