Small-Business Administration Loans Bloomington IL

Ask 10 body shop owners to tell you the most frustrating aspect of running their businesses, and eight of them will probably name the area of financing. It's no secret that obtaining adequate funding to meet day-to-day needs for working capital, equipment and facilities poses a major challenge.

By J. Tol Broome, Jr.
8/1/1997

There may, however, be help in sight. In recent years, the Small Business Administration's (SBA's) guaranteed-loan program has become an attractive potential solution to business owners facing capital restrictions. The problem is, many shop owners have little knowledge of the program's advantages or believe it to be too complicated.

"The SBA was formed more than 40 years ago to help small businesses get started in business and to help them grow once they are in business," says Mike Stamler, an SBA spokesperson. "I think we're accomplishing that from year to year.

"The SBA is a good potential source of financing for any business owner, particularly if he can't get conventional financing from a commercial lender."

"Wait just a minute," you say. "I've heard that the SBA creates a mound of paperwork and months worth of headaches for even the smallest loan request. This SBA guy must be talking about a different program!"

Same program. New rules.

The Transformation Begins

Up until the late 1980s, the SBA's reputation as a bogged-down government bureaucracy was well-founded. It wasn't unusual for a...