I am a single native american woman with 2 small children. I have floral design experience %26amp; cake decorating experience. Getting a divorce, need to provide for my children %26amp; myself.
How do I go about purchasing a business if I have bad credit, %26amp; owe back taxes?
I think this might help you...
The Small Business Administration is Congressionally mandated to assist the nation’s small businesses in meeting their financing needs. The agency’s mall business loan programs enhance the ability of lenders to provide long- and short-term business loans to small businesses that might not qualify through normal business loan channels.
There are basically four types of Small Business Administration business loan and equity investment programs available: the 7(a) Business Loan Guaranty Program, the 7(m) MicroLoan Program, the 504 Certified Development Company Business Loan Program and the Small Business Investment Company Program.
The 7(a) Business Loan Guaranty Program is the Small Business Administration's primary small business loan program. It is also the most flexible small business loan program, since the agency can guarantee financing under this loan program for a variety of general business purposes.
In guaranteeing a small business loan, the Small Business Administration (SBA) assures the lender that, in the event the small business owner does not repay the business loan, the Small Business Administration will reimburse the small business lender for its loss. The small business owner however, still remains obligated for the full amount due.
How It Works
You submit a business loan application to an SBA participating small business lender for initial review. If the business lender approves the business loan subject to an SBA guaranty, a copy of the business loan application and a credit analysis are forwarded by the business lender to the Small Business Administration.
Following SBA approval, the business lending institution closes the business loan and disburses the funds to the small business owner. The small business owner makes monthly loan payments directly to the business lender.
No balloon payments, loan application fees or points are permitted with 7(a) business loans. The small business lender can tailor the repayment plan for each small business.
Use of Proceeds
A start-up small business or existing small business may use the proceeds of a 7(a) guaranteed business loan to —
? expand or renovate facilities;
? purchase machinery, equipment, fixtures and leasehold improvements;
? finance receivables and augment working capital;
? refinance existing debt (under some circumstances);
? finance seasonal lines of credit;
? construct commercial buildings; and/or
? purchase land or buildings.
SBA Women, Minority, %26amp; Veterans Small Business Loan Prequalification Program
The SBA Small Business Loan Prequalification Program is offered to armed forces veterans, minorities, women, exporters, rural small business owners and business owners in certain specialized industries, this small business loan program enables the SBA to pre-qualify an applicant for a 7(a) loan guaranty before the applicant goes to a bank.
Veteran Small Business Loans
Patriot Express Small Business Loan
The U.S. Small Business Administration's (SBA) Office of Veterans Business Development has announced the Patriot Express Small Business Loan for veterans and members of the military community wanting to establish or expand small businesses.
The mission of the Office of Veterans Business Development is to maximize the availability, applicability and usability of all administration small business programs for Veterans, Service-Disabled Veterans, Reserve Component Members, and their Dependents or Survivors.
Eligible military community members include:
Service-disabled veterans
Active-duty service members eligible for the military’s Transition Assistance Program
Reservists and National Guard members
Current spouses of any of the above
The widowed spouse of a service member or veteran who died during service or of a service-connected disability
504 Certified Development Company (CDC) Program
The 504 Certified Development Company Program provides growing businesses with long-term, fixed-rate business loans for major fixed assets, such as land and buildings. Approximately 270 CDCs nationwide work with the Small Business Administration and private-sector business lenders to provide financing to small businesses. CDCs are nonprofit corporations set up to contribute to the economic development of their local communities.
Low Documentation Loan (SBALowDoc)
SBALowDoc is the Small Business Administration’s quick and easy small business loan program that provides a guaranty on small business loans of $150,000 or less. You complete the front of a one-page business loan application. The agency processes completed loan applications within 36 hours.
SBAExpress Loans
SBAExpress Loans provide small business loans of $250,000 or less. The SBA provides a rapid response through its PLP processing center in Sacramento, Calif.— within 36 hours of receiving the complete application package. Lenders use their own procedures to approve and service the loans.
7(m) Microloan Program
The SBA’s Microloan Program provides very small business loans up to $35,000 to small businesses and not-for-profit child-care centers through a network of locally based intermediary business lenders.
CAPLines Loan
Through CAPLines, the Small Business Administration helps small businesses meet their short-term and cyclical working-capital needs. There are five short-term working-capital loan programs for small businesses under the CAPLines umbrella:
Seasonal Line: These are working capital advances against anticipated inventory and accounts receivable help during peak seasons when businesses experience seasonal sales fluctuations.
Contract Line: Finances the direct labor and material cost associated with performing assignable contract(s).
Builders Line: If you are a small general contractor or builder constructing or renovating commercial or residential buildings, this can finance direct labor-and material costs.
Standard Asset-Based Line: This is an asset-based working capital line of credit for businesses unable to meet credit standards associated with long-term credit. It provides working capital for cyclical growth, recurring and/or short-term needs.
Small Asset-Based Line: This is an asset-based working capital line of credit of up to $200,000.
Defense Loan and Technical Assistance (DELTA) Program
If you own a defense-dependent small business that has been adversely affected by defense cuts or that is located in a defense-impacted community, the DELTA Program can help you diversify into the commercial market.
CommunityExpress Loans
The CommunityExpress Loans pilot program is designed to spur economic development and job creation in untapped rural and inner city communities by providing small business loans in low and moderate income urban and rural areas.
Community Adjustment %26amp; Investment (CAIP)
CAIP loans are intended to create new, sustainable jobs and preserve existing jobs in businesses at risk due to changing trade patterns with Canada and Mexico.
Export Working Capital (EWCL) Loan
The EWCP provides short-term loans to small businesses for export-related transactions. Under the EWCP, the SBA can guarantee up to 90 percent of a secured loan or $750,000.
International Trade Loan (ITL) Program
The International Trade Loan Program provides small business loans to businesses engaged in international trade, prepared to engage in international trade, or adversely affected by competition from imports.
Energy %26amp; Conservation Loan
Small business loans are available for businesses engaged in engineering, manufacturing, distributing, marketing, and installing or servicing products or services designed to conserve the nation’s energy resources.
Pollution Control Loan
This program provides small business loans to businesses that are planning, designing or installing a "pollution control facility". Unlike the Energy Conservation Loan, the Pollution Control Loan is for the end-user of the pollution control facility.
Qualified Employee Trusts Loan
The Small Business Administration can guarantee 7(a) business loans to employee trusts that are part of a plan sponsored by their employer, and qualify under the Internal Revenue Code as an (Employee Stock Ownership Plan) or the Department of Labor (under the Employee Retirement Income Security Act). Loan proceeds may be used by an employee trust for a growth and development loan, whereby the trust re-lends the loan proceeds to the employer by purchasing qualifying securities in the employer's business; or a change of ownership loan, whereby employees acquire controlling interest in the employer's business. Collateral for the loan includes the assets of the employer's business.
SBA ExportExpress Loans
SBA ExportExpress Loans may be used for most export-related business purposes.
Small Business Grants
Small Business Innovation Research (SBIR) Program
Under the Small Business Innovation Research (SBIR) program, 10 federal agencies having annual external research and development requirements of more than $100 million, must reserve 2.5% of these funds for award to small businesses.
Small Business Technology Transfer (STTR) Program
Under the Small Business Technology Transfer (STTR) program, five agencies with annual external research and development budgets of more than $1 billion, must reserve .15% of these funds for award to collaborative efforts between small businesses and non-profit research institutions.
Venture Capital
Small Business Investment Companies (SBICs)
Small Business Investment Companies (SBICs) put venture capital, in the form of small business loans and equity financing, into small businesses for growth, modernization and expansion. SBIC's are investment companies licensed by the Small Business Administration. They make venture capital in
Reply:Hi, Please make a business plan in a simple business language. Probably in a word document..
Explaining
What is the business you wanted to buy?
How are they doing at the moment?
How will you change the business (Operationally) after buyout?
What is the future you can see from the current owner and current business plan?
Financial projections every month basis and repayment with interest.. Include fair interest in this and add premieum, your salary, all kinds of costs and profits etc.. and make a reserve to business if possible.
and then atlast in a simple manner with above details provide investor an exit plan..
What is an exit plan?
Lets assume Mr.angel is investing in your company.. he is the 51% owner of the business and you are 49% owner.. every month salary you take is from that 49% profit.. and overall 49% will generally be way more than your salary.
the rest of profit you make apart from expenses will go for interest and Mr.Angels capital repayment.. once his capital is repayed according to your calculation.. you might buy back shares at nominal price and Mr.Angel will be 20% owner of business.
Why would Mr.Angel be interested?
He generally would be interested because.. for the investment he invested.. He got 51% which is control of company so if your bad finance is a problem to him he can always manage..
he is getting his capital with investment
He is selling his 31% or less or more according to agreement shares at nominal price..
at the end of the day he is still owner of 20% of shares.. which shouldnt be a problem to you because he helped you on a bad day..? what you think?
Reply:That is what "Child Support" is for. %26lt;}:-})
Reply:I don't think it's going to be easy with bad credit. Your best bet is if family can help you with that.
Reply:You cannot purchase a business under those conditions. You need to get things straightened out first. Or find a rich benefactor.
Reply:The back taxes are going to be a big problem. Because the government can jump ahead of any creditors and take your assets, lender will se you as bad risk. Back taxes are worse than a bankruptcy.
A business partner with good credit would help. Talk to the IRS or whatever government agency you owe money to, explain your situation. Ultimately they want the money and they know they can't get it if you're not working. Sometimes they will help in unofficial ways, even if it's only contact information.
Reply:Hi,
I have a opportunity for you that your credit will not effect. Due to yahoo guidelines you will have to email me and I will direct you where to go and you be the judge if it's for you.
Val
Reply:Sadly about the only way would be high interest loan sharks, or paying off your debts and fixing your credit rating, then applying for a loan.
I wish I had better words to say :-(
Reply:lie, cheat, and steal.
Reply:Contact the Small Business Association www.sba.gov
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