How to Get a New Business Loan in Michigan
Getting a new business loan for an established business or a new venture takes a bit of time, but business owners in Michigan will be pleased with the many resources available to them. Business loans vary depending on need. There are private loans, government loans, bank loans and investment company loans available. Learning about the different types of loans you qualify for is an important first step in deciding which type of loan you should pursue.
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Instructions
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Contact Michigan's division of the Small Business Administration (SBA) to find a new business loan. These loans may be provided to small-business owners by private investment companies, private development companies and preferred lenders that have experience working with the SBA, so loans are often expedited. MicroLoans and Patriot Express loans are special programs sponsored by the SBA. Visiting a Michigan branch of the SBA will help business owners learn about the loans available to them. SBA representatives can also help with loan applications and understanding the terms of a loan before accepting it.
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Compare available private and bank business loans through an online source such as BuyerZone to find the best interest rates and terms available. You may also choose to apply directly to several different local and national banks to compare loans; however, this can be time consuming. Comparison sites enable business owners to look at bank, private investor and private company loans that are available to them in one place, allowing them to compare repayment plans, interest rates and default options with ease.
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Research loans that apply specifically to the type of business you run or the type of project you are hoping to accomplish. Michigan's Department of Natural Resources and Environment offers a Small Business P2 Loan Program. This program is intended for existing small businesses located in the state of Michigan with fewer than 500 employees. These loans are intended for special projects that focus on eliminating or reducing waste, recycling, reusing, water conservation and energy conservation. Businesses that are helping to reduce the negative effects on the environment of doing business are able to apply for a loan. P2 loans are available in various amounts with low, competitive interest rates.
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Tips & Warnings
Understanding a loan's payment schedule, interest rate, penalties for late payments, deferment options, personal liabilities and business liabilities is essential to making a wise business loan choice. The Michigan SBA and Small Business Loan center have online resources and individual counselors to help business owners make this important decision.
References
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