Here at IncorporateFast we get a lot of calls with questions regarding how to make sure that the state shows the business as a woman-owned or minority-owned business. In most cases the state does not ask for the ownership percentage, and minority & woman owned businesses are for the most part, required to be 51% owned by minority or women. With LLCs, members are the owners of the LLC, and with corporations, ownership is shown by who holds shares of stock in the corporation. While the state might not request this information, in order for you business to be registered as a minority owned or woman owned business, you must apply with the Small Business Administration. There are a lot of benefits to having your business registered as minority or woman owned, a big advantage is that there are special loans and grants that your business can apply for. If you have questions about forming your own business, please don't hesitate to call us at 866-999-8200.
Getting your business started can be a slow laborious process. You need capital but don't have the resources to get it. One of the few places that you may try to get funding is the Small Business Administration. The SBA caters to small business and its goal is to get small businesses off the ground. Banks and other lending institutions are offering loan packages geared to small business. The unique thing about the SBA is that even though banks will call it a SBA loan, the SBA doesn't really loan any money. What they do is that they guarantee the money in the event of a default. So the bank is protected in loaning out money to small business.
There are many different types of loan packages that the SBA does offer. The name of the loan program is the 7(a) Loan Program. The loans are specifically for start ups and small business who want to get started but with little or no funding. The SBA website has a lot of information on the different types of loans available to you depending on the general purpose of the small business. Check it out if you're in need of a small loan to get started. It is one of the best sources of funding for small business anywhere. Many banks are still hesitant to lend out their own money so a guaranteed loan from the SBA may be the way to go. However, you still have to qualify.
Sam's Club which is part of the Walmart group will soon be offering small business loans. We can help you file for a small business whether you'd like to form an LLC or form a corporation. Sam's Club already caters to many small business owners with their bargains on bulk items and now they will be offering small business loans from $5,000 to $25,000 through Superior Financial Group which is affiliated with the Small Business Administration. Sam's Club is offering the loans with a 7.5% APR and hopes that they can provide the loans when many other banks are denying small businesses the loans they need to survive. The loans will have a 10 year repayment plan and there is no penalty for paying off the loan early.
Over Mother's Day Weekend there was an unexpected snow storm that hit Wisconsin, and now there are Small Business Loans available to businesses who lost revenue due to the storm. The SBA's Economic Injury Disaster Loan program is providing the loans to business owners in several counties in Wisconsin. Most agricultural businesses are not eligible for the loans though you should check with the SBA in regards to your specific business.
Although the Small Business Administration loans have been slow throughout the country, there may be some improvement for business owners in California. The improvement in the number of business getting approved for SBA loans have been rising since the spring. New incentives have also made it more appealing to get the loans from the SBA. Fees on the loans have been lowered while loan guarantees have risen to 90% vs 75% before.
Although the numbers of loans are rising, lenders still remain cautious. Small business are still suffering from the effects of the recession. The increased lending is being driven by the improving credit worthiness of business. The market is improving and business is steadily adding jobs. It will be up to the economy to weather the storm over the turmoil happening overseas with Greece.