{"id":225395,"date":"2023-06-20T16:00:05","date_gmt":"2023-06-20T16:00:05","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/alternative-small-business-financing-options-for-atlanta-smbs\/"},"modified":"2023-06-20T16:00:05","modified_gmt":"2023-06-20T16:00:05","slug":"alternative-small-business-financing-options-for-atlanta-smbs","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2023\/06\/alternative-small-business-financing-options-for-atlanta-smbs\/","title":{"rendered":"Alternative Small Business Financing Options for Atlanta SMBs"},"content":{"rendered":"
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I\u2019ve talked to you before about the ERC scams running rampant and how to steer clear of them, but there\u2019s a recent update worth mentioning:<\/p>\n

They\u2019re also partially responsible<\/span><\/a> for the IRS\u2019s delay in issuing ERC refunds \u2014 especially for small businesses.<\/p>\n

And funds like that could be exactly the kind of boost needed for struggling businesses. <\/p>\n

Now, maybe the ERC credit isn\u2019t for your Atlanta business (or you\u2019ve already received it), and you\u2019re still in need of a cash flow infusion. The banking crisis certainly isn\u2019t making that easy for you. Which is why I want to talk about some alternatives to bank loans in today\u2019s article. Before I do, though\u2026 <\/p>\n

Besides getting capital, another strategy you might consider to boost your biz is working with large businesses. The U.S. Chamber of Commerce is hosting a little forum<\/span><\/a> on June 22 to talk more about that. It seems big businesses see the value in working with and creating partnerships with small businesses like yours.<\/p>\n

Take Apple<\/span><\/a>. They\u2019ve recently been working on Tap to Pay capabilities for secure payments for businesses (among other things). And they\u2019re not the only ones making moves to help improve various aspects of business operations.<\/p>\n

And though I\u2019m no big business, I am here, looking out for you and your business\u2019s future. If we haven\u2019t talked yet about how you\u2019re tracking to reach this year\u2019s business goals, let\u2019s make some time. Reach out to me here:
calendly.com\/mark-perlberg-cpa<\/a><\/strong><\/span><\/p>\n

Now, for a look at alternative small business financing options for your Atlanta business\u2026<\/span><\/p>\n

Alternative Small Business Financing Options for Atlanta SMBs<\/strong><\/span>
\u201cFortune befriends the bold.\u201d – Emily Dickinson<\/i><\/span><\/p>\n

Sure, banks come to mind first when your small business needs capital. But in these days of higher interest rates and tighter lending, it pays for you to know where else to turn for financing. <\/span><\/p>\n

Because sometimes, banks are the best option. And sometimes, they aren\u2019t.<\/span><\/p>\n

Last time, we looked at the process for getting a bank loan. Today, let\u2019s examine a few lenders for your business other than banks.<\/span><\/p>\n

Alternative Small Business Financing<\/strong> Option 1: Small Business Administration<\/strong><\/span><\/p>\n

The U.S. SBA offers a ton of loan programs through lenders. One of them is the 7(a) Program for \u201cbusinesses with special requirements.\u201d <\/span><\/p>\n

The SBA bills it as a good option when real estate is part of a business purchase, but it can also be used for short- and long-term working capital, refinancing debt, and purchasing of machinery, equipment, furniture, and supplies. The max amount for a 7(a) is 5 million dollars. <\/span><\/p>\n

Eligibility is based on what your business does for income, credit history, and where you operate. Repayment is usually monthly, and generally these loans require a 10% down payment (potentially more for startups). <\/span><\/p>\n

To apply, you\u2019ll need an SBA form and much the same paperwork as for a bank business loan (though this can vary by lender): financial statements (including personal and projected), P&Ls, owners\u2019 info, business licenses, loan application history, and tax returns \u2014 among other documents. <\/span><\/p>\n

The SBA also has other biz financing, including its SBA Express Loan. Approval times can be faster depending on the lender. Repayment terms vary with loan and purpose. Interest depends on the lender but does max out at prime plus 6.5% for loans of 50,000 dollars or less, and prime plus 4.5% for loans greater than that. Express loans for more than 25,000 require collateral. Funding speeds also vary by lenders, but you often get your money within 90 days. <\/strong><\/span><\/p>\n

(If you\u2019re interested, you can find SBA loan application info<\/span> <\/span>here<\/span><\/a> and a lender-match tool<\/span> <\/span>here<\/span><\/a>.) <\/strong><\/span><\/p>\n

Alternative Small Business Financing<\/strong> <\/span>Option 2: Online lenders<\/strong><\/span><\/p>\n

Just like about everything else, business lending has blossomed on the internet. These lenders can give faster access to money for your business \u2014 sometimes in just days \u2014 but at (not surprisingly) higher rates and fees and lower maximums. <\/span><\/p>\n

Often the lenders are financial tech companies rather than banks. Their eligibility requirements can be more flexible and the documentation requirements easier. No interviews will be in person (up to you if this is a plus or a minus). They\u2019re also more likely to work with startups or businesses whose credit has been dinged. <\/span><\/p>\n

Typical online financing options include: <\/strong><\/span><\/p>\n