Business 101: There’s no such thing as a free lunch.
Your Parents 101: Money doesn’t grow on trees.
Reality Check 101: Due to the current sub-prime crisis, banks are losing massive amounts of money, bankers are getting laid off, and small business owners are taking it in the asphalt of their parking lots as they pack up and vacate the premises.
Life 101: there’s always a cool trick to dodge bullets Bond, James Bond-style during current crises when you’re in the know.
Up until recently, it was the Golden Age for small businesses, back when a guy could go into the bank, declare mediocre credit scores, exaggerate (or even completely fabricate) current income numbers without providing documentation, and walk out with a large business loan with a low interest rate. Well, those days are over and many are arriving to a sad realization: free money is out and the economy’s recession is in—-however, some such individuals as Ben Bernanke would beg to differ. Either way, small businesses rock; start-ups are cool; and frankly, we still need funding. So, what’s the dues ex machina?
As I sat rummaging through some business magazines for answers in a crowded Barnes & Noble just down the street from whining Wall Street bankers, I stumbled across an eyebrow-raising article about something called 7(a) loans. Later, when I arrived at my computer at home, I visited the Small Business Administration’s website and sifted through about three pages when I found information about this loan program that practically gives out up to $25,000 without the necessity of any borrower collateral. As part of SBA 7(a) program, the Community Express Loan is a loan program which was developed in coordination with the National Community Reinvestment Coalition and the basic idea is: it gives out free money to small businesses… kinda. Sure, money doesn’t grow on trees, maybe not even on Lendingtree.com. However, with programs like this, entrepreneurs are being granted greater access to cash to get balls rolling and little lines on PowerPoint presentations pointing up. Technically, it’s not free free, and payback can be a bit—challenging. But with an initial cost of nothing to start-up, it’s free money to start-up your business. What’s done from there is dependant upon whether you know anything about free lunches.