Business owners, bankers get schooled on loans

Ashley Archibald, The Union Democrat /

Business owners and bank operators were schooled on the ins and outs of special government loans that target small businesses in an effort to boost entrepreneurialism last Wednesday.

John Manalli, the Small Business Administration Fresno district deputy director, led a one and a half hour discussion examining different kinds of loans available to business owners, which worked for specific business situations and how the rules of the programs changed in 2010.

The SBA is a part of the federal government that guarantees loans made by certain commercial banks to small businesses.

Businesses that have less than $15 million in net worth and $5

million in average net income can apply for small business loans, which

the SBA will guarantee up to 75 percent in many cases.

That kind of support gives banks incentive to provide loans to

small businesses which might otherwise have difficulty finding

financing as large commercial banks shy away from most investments.

SBA loans come in a variety of shapes and sizes, and are meant to

help businesses with immediate cash flow needs to those who have longer

term development goals.

Manalli specifically pushed so-called "low doc" programs, which

require less paperwork and therefore get quicker approval by the SBA,

including the rural loan programs and SBA Express program.

"They're easier, have less documentation and looser collateral rules," Manalli said.

Oddly, although the SBA doesn't identify as a "collateral lender,"

if collateral is available to be pledged and worthwhile, the

administration expects loan-seekers to put it up.

"We're not collateral lenders, but if you've got it, we want it," Manalli said.

Low doc loans are also much faster to obtain than traditional loans.

The SBA Express loan has a 36-hour window for review, allowing

borrowers to get their applications expedited and business plans under

way.

The SBA also hooks small businesses into federal procurement

programs to attract government contracts and guides small business

owners to free educational services to help get the enterprise off the

ground.

The mission is to help small businesses succeed, which is

especially important given the impact that small businesses have on the

national economy, Manalli said.

"Small businesses provide 75 percent of jobs and 99 percent of

employers are small businesses," Manalli said. "Everybody depends on

small business."

Local businesses can seek SBA loans from any SBA-qualified or preferred lender, including Umpqua Bank or Bank of Stockton.

To learn more about SBA loans, contact the SBA Fresno district

office at 559-487-5791, or call the Tuolumne County Business Alliance

at 677-7822.

Contact Ashley Archibald at aarchibald@uniondemocrat.com or 588-4526.

11824049
The Union Democrat
This image is copyrighted.

Reach all of Sonora, Calaveras County, Tuolumne, Angels Camp, Twain Harte, & Jamestown with your items to sell.

Ads appear Online and in Print

View Classifieds Place an Ad

Connect with The Union Democrat

Union Democrat Newsstand

Wednesday May 25, 2016

Read digital interactive editions of our publications

Read Today's Edition Take A Tour

More Publications by The Union Democrat

View All Publications
Homelessness, high school and the Butte Fire

05/20/2016

Cole Baisch arrived at Calaveras High School around lunchtime as the sky ... more

Avalon Care Center fined for patient death

05/24/2016

Avalon Care Center in Sonora has been fined $80,000 by the California ... more

Deputies visit schools, build community ties

05/24/2016

You would think Tuolumne County Sheriff’s Deputy Nate Yorston was Santa Claus ... more

High Sierra passes closed again

05/20/2016

Days after authorities opened Ebbetts Pass, Sonora Pass and Tioga Pass for ... more

Teens uninspired by election process

05/23/2016

An April survey by The Union Democrat of 375 high schoolers in ... more