How to Obtain Seed Money to Start or Expand Your Business

There are many available sources for obtaining seed money for a business start up or to expand an existing business. Many folks start with family or friends in their search for capital. For those of you who do not have a rich uncle waiting in the wings, this is for you!
I highly recommend the the Express Loan program from the SBA. Normally, when you think of SBA financing, you think of long application processes and extending waiting. I assure you that is not the case with this program. The approval process is only 21 days from the time you complete the pre-application to the time you actually receive your funding.
The lending critieria is extremely low and nine out of ten business owners will qualify for this program. So how much funding can you obtain using this loan program? You can receive $5000- $50,000 for a start up business and up to $250,000 for an existing business wanting to expand.
First, determine if you meet the basic lending criteria. There are only 4 factors you need to consider. Do you have a minimum FICO score of 500? (The SBA prefers a FICO of 525 and above, but the minimum cutoff is 500). Are you current on the last ninety days of your personal bills? (rent/mortgage, utilities, etc) Do you owe the government any money, such as back taxes, child support, or an old student loan? Have you ever been convicted of a felony? (You can not apply for this loan program if you have a felony conviction on your record.) That's it! Thats the basic lending criteria you need to meet in order to qualify for the loan program. So, lets get started planting some seeds!

Things You'll Need

• Computer w/internet access
• Business checking account
• Incorporation paperwork
• EIN number from the IRS
• FICO score of 525 or higher

Instructions

1. Go to the SBA website at SBAdotgov. Once there, use their internal search engine and type in SBA Express Loan. This will take you to the webpage to access the pre-application. Note, if you are a Veteran or active military, type in Patriot Express Loan. If you are a minority, handicapped, or disabled, type in Community Express Loan. All others use the SBA Express Loan.

2. Follow the instructions on filling out the pre-application for the SBA. You will list a local lender in your area that you want to use for the dispersement of funding.

3. Once you have completed the pre-application and submitted it to the SBA, they will screen the pre-application to make sure you meet their lending criteria as listed above. Once you have passed their screening, the pre-application will be forwarded to your local lender/banker for funding.

4. Your local bank/lender will contact you to complete final loan documents with the bank. The bank will send the pre-application and their own loan documentation to underwriting for approval. Once underwriting has approved your funding, your check will be readied for dispersement by the local bank. For more information about this seed money program, or to find out more how we can build your business credit WITHOUT using your personal credit, visit our website at www.PlatinumCorporateCredit.com. We look forward to assisting you in building the business credit you need to succeed!

Tips & Warnings

• The approval process takes approximately 21 days from the time you complete and submit your pre-application to the time you receive your actual funding from the bank.

• Make sure you have all documentation for the local bank as requested. This may include your articles of incorporation, EIN number documentation, business licenses, etc. Present these in an orderly fashion for presenation to the bank.

• You must have a 525 FICO or higher to apply

• You can not have a felony conviction on your record and get approved for this loan program.

• You must be current on the last 90 days of your personal finances.

• You can not owe the government any money from back taxes, student loans, or child support. (you can have an existing student loan but your payments must be current.)

• President Obama has just announced an additional 15 billion dollars in government funding to help small business owners survive the economic crisis and to assist new business owners to launch their company. 80% of private sector jobs are created by the small business owners of America.

Resources

• Building Business Credit