What Small Business Support Do You Need?

If you are looking for a venture capitalist in order to get your business started, you are in for a fight with other startup ideas. If you plan to take up a loan, be prepared to pay the capital and interest amount for a long period of time. The best way to obtain funds for your startup is via the government small business grant.

However, to get the grant, you must first submit your expenses for scrutiny. Apart from determining your approval outcome, your list of expenses will also determine the amount of grant that you will be getting for your business.

The key to keep in mind when planning your expenses is to keep them as low as possible but at the same time, you have to remember that a cheap grant will not help you in expansion. Padding your expenses by a little might help you to get more money but overdoing it will get you a outright rejection.

How to Minimize Your Startup Business Expenses

There are a lot of aspects in a business where you can cut down your expenses and the following are some of the quick tips that you can you to trim your startup expenses.

Capital expenditure. Yes, you will be able to claim government small business grant for capital expenditure such as plant and machinery purchases, office equipment expenses and furniture acquisitions. Even so, this does not mean that you should include every assets that you desire. Plan your purchases as if you are spending your own money.

Rental expenses. All businesses need a location to get started. Apart from a business address, you definitely need a place to receive calls, meet people and conduct your operations. Renting a garage will definitely be cheaper than renting a full fledge office building. Fancy offices is nothing if your business is not profitable. You may also consider offering your services or goods in exchange for a business location.

Labor expenses. Labor expenses is not cheap nowadays unless part of your business can be outsourced to places like China and India. Talents don't come cheap and securing them is hard. One great way to acquire some talents is to work with colleges and universities as fresh graduates will not mind working for a small business as long as they can pump up their resume.

With all the expenses management tips for startups above, you definitely be able to convince the government that you will utilize the grant properly. Also, the amount of government small business grant will be very desirable for your business.

Article Source: http://business-small-business-gw.blogspot.com/2008/10/what-small-business-support-do-you-need.html

U.S. Small Business Administration: The "SBA's 8(a) BD Program" Part 3

And finally, the third part of the FAQs of the "SBA's 8(a) BD Program" here: 23. What is a super majority? A super majority is the percentage of votes above a simple majority (51%) required to make decisions on behalf of the firm. 24. Are there restrictions placed on nondisadvantaged individuals in terms of their relationships with disadvantaged individuals and/or applicant firm?

Yes. Nondisadvantaged individuals may be involved in the ownership and management of an applicant firm, as stockholders, limited liability members, partners, directors, and/or officers. However, no such nondisadvantaged individual or immediate family member may
1. Exercise actual control or have the power to control the applicant firm;
2. Be a former employer or principal of a former employer of any disadvantaged owner of the applicant firm; and
3. Receive compensation from the applicant in any form as directors, officers, or employees, including dividends that exceed the compensation to be received by the highest officer. The highest ranking officer may elect to take a lower salary than a nondisadvantaged individual only upon demonstrating that it helps the applicant firm. If one or more of these situations exist, the nondisadvantaged individual will be found to control the firm. Additionally, nondisadvantaged individuals or entities having an equity interest in an applicant firm and who provide critical financing, bonding, or a critical license, may be found to control the firm.

25. What factors are considered by SBA in evaluating the potential for successful 8(a) requirement?

SBA will evaluate the following:
1. the technical and managerial experience of the applicant firm's managers,
2. the firm's operating history, ability of the firm to access credit and capital,
3. the firm's financial capacity,
4. the firm's record of performance, and
5. whether the applicant firm or individuals employed by the firm hold the requisite licenses if the firm is engaged in an industry requiring professional licensing.

26. Does SBA have a minimum length of time in business requirement for 8(a) program certification?

Yes. The applicant firm must have been operational for at least two full years as evidenced by business income tax returns for each of the two previous tax years which show operating revenues in the primary industry in which the applicant firm is seeking 8(a) program certification.

27. Can a firm still apply for participation in the 8(a) BD Program if it has not been in business for two full years?

Yes. However, the firm must obtain a waiver of the two years in business requirement by meeting all of the following conditions:
1. The individual or individuals upon whom eligibility is based must have substantial business management experience.
2. The applicant firm must demonstrate the technical experience to carry out its business plan with a substantial likelihood for success.
3. The applicant firm must have adequate capital to sustain its operations and carry out its business plan.
4. The applicant firm must have a record of successful performance on contracts from governmental or non-governmental sources in its primary industry category.
5. The applicant firm must have, or must be able to demonstrate that it has, the ability to timely obtain the personnel, facilities, equipment, and any other requirements needed to perform on contracts if it is admitted to the 8(a) program.

28. Can a firm be declined entry into the 8(a) Program for reasons of character?

Yes. The regulations stipulate that the applicant concern and all its principals must have good character. SBA may determine that a lack of character demonstrated by any one of the following circumstances:
1. Adverse information regarding possible criminal conduct by the applicant and its principals;
2. Violations of SBA regulations; Debarment or suspension of firms and/or individuals;
3. Lack of business integrity as demonstrated by information related to an indictment or guilty plea, conviction, civil judgment, or settlement;
4. Principals of the firm are currently incarcerated, or on parole or probation; or
5. Evidence that the firm knowingly submitted false information during the application process.

29. Are brokers eligible for the 8(a) BD Program?

No. Brokers are not eligible for the program. A broker adds no material value to an item supplied to a procuring activity, does not take ownership or possession, and does not handle the item procured with its own equipment or facilities. If the applicant firm is a broker, but does not meet this definition, the firm may be eligible for 8(a) program participation.

30. What happens if an 8(a) Program applicant firm or any of its principals fail to pay significant financial obligations owed to the federal government?

If an applicant firm or any of its principals fail to pay significant financial obligations owed to the federal government, including unresolved tax liens and defaults on federal loans or other federally assisted financing, the applicant firm will be ineligible for 8(a) program participation.

31. How long does the 8(a) BD application process take?

The regional Division of Program Certification and Eligibility (DPCE) has 15 days to review the application for completeness. If the application is incomplete, the applicant will have 15 days to provide additional information. If the DPCE determines the application is complete, a final decision regarding 8(a) BD Program eligibility will be made within 90 days after SBA's determination that the application is complete.

32. What if an 8(a) Business Development Program application is declined?

Each program applicant has the right to request that SBA reconsider a declined application by filing a written request for reconsideration within 45 days after receiving notice that the application was declined. The applicant has the burden of overcoming each reason cited in SBA's decision to decline the application. During the reconsideration process, the applicant must provide any additional information and documentation necessary to overcome the reason(s) for the initial decline. If an application is declined after reconsideration, SBA will not accept a new application until twelve (12) months after the date of the final Agency decision on reconsideration In addition, if an applicant is declined solely on issues of social disadvantage, economic disadvantage, ownership, control, or any combination of these four criteria, the declined applicant may appeal the decline decision to SBA's Office of Hearings and Appeals (OHA). This can happen either after receiving the initial decision to decline the application or after receiving a negative decision on reconsideration. OHA examines the decline decision to determine whether it was arbitrary, capricious, or contrary to law. No new or revised information is considered during the appeal process.

33. How long can a company participate in the 8(a) program?

Program participation is divided into two stages: the developmental stage and the transitional stage. The developmental stage is four years and the transitional stage is five years. The developmental stage is designed to help 8(a) certified firms overcome their economic disadvantage by providing business development assistance. The transitional stage is designed to help participants overcome the remaining elements of economic disadvantage and to prepare participants for leaving the 8(a) program.

34. Are 8(a) firms reviewed by SBA annually for compliance with eligibility requirements?

Yes. As part of an annual review, each Participant firm must submit to the servicing district office the following:
1. A certification that it meets the 8(a) BD program eligibility requirements;
2. A certification that there have been no changed circumstances which could adversely affect the Participant's program eligibility;
3. Personal financial information for each disadvantaged owner;
4. A record from each individual claiming disadvantaged status regarding the transfer of assets for less than fair market value to any immediate family member, or to a trust in which an immediate family member is a beneficiary, within two years of the date of the annual review. The record must provide the name of the recipient(s) and family relationship and the difference between the fair market value of the asset transferred and the value received by the disadvantaged individual;
5. A record of all payments, compensation, and distributions (including loans, advances, salaries, and dividends) made by the Participant to each of its owners, officers, directors, or to any person or entity affiliated with such individuals;
6. IRS Form 4506, Request for Copy or Transcript of Tax Form; and
7. Such other information that SBA may deem necessary.

   When a Participant fails to provide documentation for annual review, SBA may initiate termination proceedings.

35. What does it mean to be "terminated" from the 8(a) BD Program?

The term "terminate" is used to refer to a Participant's exit from the 8(a) BD Program prior to the expiration of its program term for good cause. Examples of good cause include, but are not limited to the following:
1. Submission of false information in the concern's 8(a) BD application, regardless of whether correct information would have caused the concern to be denied admission to the program, and regardless of whether correct information was given to SBA in accompanying documents or by other means.
2. Failure by the concern to maintain its eligibility for program participation.
3. Failure by the concern for any reason, including the death of an individual upon whom eligibility was based, to maintain ownership, full-time day-to-day management, and control by disadvantaged individuals.
4. Failure by the concern to obtain prior written approval from SBA for any changes in ownership or business structure, management, or control.
5. Failure by the concern to disclose to SBA the extent to which non-disadvantaged persons or firms participate in the management of the Participant business concern.
6. Failure by the concern or one or more of the concern's principals to maintain good character.
7. A pattern of failure to make required submissions or responses to SBA in a timely manner, including a failure to provide required financial statements, requested tax returns, reports, updated business plans, information requested by SBA's Office of Inspector General, or other requested information or data within 30 days of the date of request.
8. Cessation of business operations by the concern.
9. Failure by the concern to pursue competitive and commercial business in accordance with its business plan, or failure in other ways to make reasonable efforts to develop and achieve competitive viability.
10. A pattern of inadequate performance by the concern of awarded section 8(a) contracts.
11. Failure by the concern to pay or repay significant financial obligations owed to the Federal Government.
12. Failure by the concern to obtain and keep current any and all required permits, licenses, and charters, including suspension or revocation of any professional license required to operate the business.
13. Excessive withdrawals, including transfers of funds or other business assets, from the concern for the personal benefit of any of its owners or any person or entity affiliated with the owners that hinder the development of the concern.
14. Unauthorized use of SBA direct or guaranteed loan proceeds or violation of an SBA loan agreement.
15. Conduct by the concern, or any of its principals, indicating a lack of business integrity. Such conduct may be demonstrated by information related to a criminal indictment or guilty plea, a criminal conviction, or a judgment or settlement in a civil case.
16. Willful failure by the Participant business concern to comply with applicable labor standards and obligations.
17. Material breach of any terms and conditions of the 8(a) BD Program Participation Agreement.
18. Willful violation by a concern, or any of its principals, of any SBA regulation pertaining to material issues.

36. What does it mean to "graduate" from the 8(a) BD Program?

The term "graduate" is used to refer to a Participant's exit from the 8(a) BD Program at the expiration of the Participant's term.

That's All

The source is: http://app1.sba.gov/faqs/faqIndexAll.cfm?areaid=17

U.S. Small Business Administration: The "SBA's 8(a) BD Program" Part 2

Now we will contenue the second part of The "SBA's 8(a) BD Program":

11. Must an individual who is not a member of a designated group show discrimination in education, employment, and business history in order to show negative impact on entry into or advancement in the business world because of the disadvantage?

SBA will consider any relevant evidence in assessing this element. In each case, however, SBA will consider the experiences of the individual, where applicable, in education, employment, and business history to determine whether the totality of the circumstances shows disadvantage in entering into or advancing in the business world. Evidence relating to all three should be addressed, if applicable. For each applicable circumstance the individual applicant should demonstrate how it has affected his/her entrance into and advancement in the business world. The failure to establish disadvantage in any one or these areas (i.e., education, employment, or business history) does not prevent an individual from meeting the negative impact requirement as long as the totality of the circumstances experienced by the individual demonstrates such disadvantage.

12. What does it mean to be economically disadvantaged?

Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities.

13. What factors are considered when SBA evaluates the economic disadvantage of an individual?

The individual's net worth, after excluding the individual's equity in the firm and the equity in the primary residence, may not exceed $250,000. SBA will also consider the individual's average two-year income, fair market value of all assets, access to credit and capital, and the financial condition of the applicant firm in evaluating economic disadvantage.

14. When evaluating economic disadvantage, does SBA include assets that an individual claiming disadvantaged has recently transferred to another individual?

SBA will attribute to an individual claiming disadvantaged status any assets that the he/she has transferred to an immediate family member (or to a trust where an immediate family member is the beneficiary) for less than market value within two years prior to the firm's application for participation in the 8(a) program. A transfer of assets for "fair market value" based on verifiable independent documentation would be excluded. Also excluded are transfers for education, medical expenses, certain forms of essential support, and transfers that are consistent with the customary recognition of special occasions (e.g. birthdays, graduations, anniversaries, and retirements). The disadvantaged applicant must show proof of the reasons for these asset transfers.

15. What percentage of ownership in the applicant firm must be owned by socially and economically disadvantaged individuals?

SBA requires that at least 51% of the applicant firm is directly and unconditionally owned by socially and economically disadvantaged individuals.

16. Are there special ownership provisions for individuals who reside in a community property or state territory?

Yes. If only one spouse is claiming disadvantaged status, this spouse's ownership interest will be considered only to the extent it is vested by the community property laws. For this reason, a transfer or relinquishment of interest by the nondisadvantaged spouse may be necessary.

17. Is ownership by a trust allowed for 8(a) certification?

8(a) regulations require that ownership in the firm by one or more disadvantaged individual(s) be direct ownership. Generally, SBA does not consider ownership by a trust to be direct ownership. However, ownership by a trust, such as a living trust, may be considered the functional equivalent of direct ownership if the following conditions are met:

1. The trust is revocable;
2. The disadvantaged individual is the grantor of the trust;
3. The disadvantaged individual is a trustee of the trust; and,
4. The disadvantaged individual is the sole current beneficiary of the trust.

18. Can a disadvantaged individual or firm have ownership in more than one 8(a) Participant?

Yes. However, one or more disadvantaged individuals determined to be disadvantaged for purposes of qualifying one Participant, their immediate family members, and the Participant itself, may not hold in aggregate, more than 20% equity in any other single 8(a) firm.

19. Are there any 8(a) ownership restrictions placed on nondisadvantaged individuals or firms?

Yes. SBA places two general ownership restrictions on nondisadvantaged individuals and firms:

1. A nondisadvantaged individual, in aggregate with all immediate family members, or firm that is a general partner or stockholder with at least a 10% ownership interest in an 8(a) firm, may simultaneously hold up to 10% ownership interest in any number of 8(a) firms in the developmental stage of program participation and up to 20% interest in any number of 8(a) firms in the transitional stage of program participation.
2. A non-participant concern in the same or similar line of business may own up to 10% of an 8(a) firm in the developmental stage and up to 20% in an 8(a) firm in the transitional stage. Former 8(a) participants or a principal of a former participant (except those that have been terminated from the 8(a) program) may own up to 20% in an 8(a) firm in the developmental stage and up to 30% in an 8(a) firm in the transitional stage.

20. How does SBA view control of an applicant or 8(a) concern?

Control is not the same as ownership, although both control and ownership may reside in the same person. Control includes both strategic policy setting and the day-to-day management and administration of business operations by disadvantaged individuals.

21. Does SBA require the disadvantaged individual to have the technical expertise and hold the critical license in order to demonstrate that he or she controls and manages the applicant firm?

No. SBA requires only that the disadvantaged individual(s) controlling the firm have management experience to the extent and of the complexity necessary to run the firm. However, the disadvantaged individual must demonstrate that he or she has the ultimate managerial and supervisory control over those in the firm with the technical or licensing expertise. If the critical license is held by a nondisadvantaged individual who has an equity interest in the applicant firm, SBA may find that the nondisadvantaged individual controls the firm.

22. How does SBA determine disadvantaged control of a corporate Board of Directors?

There are six situations where SBA may determine disadvantaged individuals control a Board of Directors:

1. If a single disadvantaged individual owns 100% of all issued and outstanding voting stock of an applicant firm, regardless of the composition of the Board of Directors.
2. If a single disadvantaged individual owns at least 51% of issued and outstanding voting stock of the applicant firm, is a legally elected voting member of the Board of Directors, and no super majority voting requirements exist for shareholders to approve corporate actions.
3. If a single disadvantaged individual owns at least 51% of all issued and outstanding voting stock of the applicant firm, is a legally elected voting member of the Board of Directors, and owns at least the percentage of voting stock needed to overcome the super majority voting requirements that exist for shareholders to approve corporate actions.
4. If more than one disadvantaged individual owns at least 51% of all issued and outstanding voting stock of the applicant firm; are all legally elected voting members of the Board of Directors; no super majority voting requirements exist for shareholders to approve corporate actions; and the disadvantaged shareholders can demonstrate they have made enforceable arrangements to permit one of them to vote the stock of all as a block to nondisadvantaged shareholders' actions, without holding a shareholder meeting.
5. If more than one disadvantaged individual owns at least 51% of all issued and outstanding voting stock of the applicant firm; are all legally elected voting members of the Board of Directors; in total all own at least the percentage of voting stock needed to overcome the super majority voting requirements which exist for shareholders to approve corporate actions; and can demonstrate that they have made enforceable arrangements to permit one of them to vote the stock of all as a block to nondisadvantaged shareholders' actions, without holding a shareholder meeting.
6. If the disadvantaged individual(s) can control the formation of a quorum for the purpose of holding a board meeting and have a majority vote at board meetings either through actual number of voting directors or through weighted voting, where permitted by state law.

to be contenue>>> The source is: http://app1.sba.gov/faqs/faqIndexAll.cfm?areaid=17

U.S. Small Business Administration: The "SBA's 8(a) BD Program" Part 1

I have found this FAQ's in the "U.S. Small Business Administration" site and i see that they will be helpful for Small Business members. So, let's start the First part of it: 1. What is the 8(a) Business Development (BD) Program?

The SBA's 8(a) BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.

2. How do I apply to the 8(a) BD program?

Contacting the local SBA district office serving your area is the first step. An SBA representative will answer general questions over the telephone. Some SBA district offices may also have 8(a) orientation workshops to provide additional information regarding the eligibility requirements and to review various SBA forms.

3. What are the basic requirements an 8(a) applicant firm must meet?

The applicant firm
1. must be a small business,
2. must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States, and
3. must demonstrate potential for success.

4. Will having a specific business consultant prepare my 8(a) application increase my chances of being approved?

You do not need to pay anyone to prepare your 8(a) application. SBA designed the application forms so the applicant can complete the application. However, a consultant can assist in completing the application. Please be advised that no one can guarantee that an application for 8(a) program participation will be approved. The application process is intended to assure that each applicant receives a fair review. Any irregularities in the application review process should be immediately referred to the SBA Office of Inspector General.

5. What is SBA's definition of a small business concern?

SBA defines a small business concern as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Examples of SBA general size standards include the following:
1. Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured;
2. Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided;
3. Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided;
4. Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided;
5. General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction;
6. Special Trade Construction: Annual receipts may not exceed $7 million; and
7. Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.

   Use SBA's quick tool to see if you qualify as a small business.

6. What is a Standard Industrial Classification (SIC) code?

A SIC code is the Standard Industrial Classification number listed in the Standard Industrial Classification Manual which is published by the Office of Management and Budget. The SIC Manual is available at your local library or on the Internet site http://www.osha.gov/oshstats. SIC codes are used by the Federal Government to identify and classify specific categories of business activity that represent the primary line of business of a firm. SBA size standards are based on SIC codes.

Use SBA's quick tool to find your SIC or NAICs codes.

7. Who are socially disadvantaged individuals?

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group. Social disadvantage must stem from circumstances beyond their control. In the absence of evidence to the contrary, individuals who are members of the following designated groups are presumed to be socially disadvantaged:
1. Black Americans
2. Hispanic Americans
3. Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians)
4. Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan; Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru; Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal), and
5. Members of other groups designated by the SBA.

8. Can an individual who is not a member of a designated group claim social disadvantage?

Yes. However, an individual who is not a member of a designated group must establish social disadvantage on the basis of a "preponderance of evidence." Generally, preponderance is evidence of quality and quantity which leads the decision maker to conclude, objectively, that the existence or truth of the fact(s) asserted is more probable than not.

9. What evidence must an individual who is not a designated group member provide to show social disadvantage?

At least one objective distinguishing feature that has contributed to social disadvantage, such as race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society, or other similar causes not common to individuals who are not socially disadvantaged:
1. Personal experiences of social disadvantage stemming from the objective distinguishing feature or features set forth in the preceding paragraph. The experiences must have been in American society, not in other countries, and must have been substantial and chronic.
2. Negative impact on entry into or advancement in the business world because of the disadvantage. SBA considers any relevant evidence in assessing this element. In every case, however, SBA considers education, employment and business history, where applicable, to see if the totality of circumstances shows disadvantage in entering or advancing in the business world.

10. What types of evidence can be used to assist in meeting the burden of proof?

Court or administrative findings of discrimination. Statements made under oath to an investigator or in a court or administrative proceeding. Affidavits or statements sworn under oath by an individual owner which have specific recurrent incidents of discrimination or a pattern of discrimination over a significant period of time. Applicant statements alone, without supporting or corroborating evidence will be given less weight than if corroborated. Sworn affidavits or statements from independent third parties, who do not have an interest in or close relationship to the owner, corroborating or supporting assertions made by the owner Statements by relatives or friends of the owner will have less weight than statements by independent third parties. Documentary evidence which corroborates or supports assertions made by an owner regarding specific incidents or a pattern of discrimination. Such documentation includes these items:
1. Personnel records
2. Payroll records
3. Rejection letters on job applications
4. Denials of credit application Documents relating to rejected contract offers, i.e., bid abstracts, solicitations, etc.
5. Contemporaneous records memorializing meetings, conversations, negotiations, telephone calls, etc.
6. Documents setting forth company policy(ies) which are alleged to be discriminatory.
7. Evidence which tends to show generalized patterns of discrimination against a non-designated group or statistical data showing that businesses owned by a specific non-designated group are disproportionately underrepresented in a particular industry may be used to augment an individual's case. Statistics and generalized patterns are not sufficient by themselves to establish a case of individual social disadvantage. However, an individual's statement of personal experiences in combination with the generalized evidence may be sufficient to demonstrate social disadvantage.

the source is: http://app1.sba.gov/faqs/faqindex.cfm?areaID=17

Bad credit small business loan - Does a Bad Credit Small Business Loan Make Sense?

Your enterprise has been your dream, your livelihood and even your obsession for years but due to recent events, the accounts receivable have taken a downturn and you are beginning to accrue a hefty debt. Due to new competition or just a slowdown in consumer spending, or for any reason, the monthly bills dwarf the cash flow each month, and payments are falling behind schedule. The delinquent payments are resulting in substantial late charges being levied and the interest continues to accrue and adds to a growing, rather than decreasing, principal. It seems to you that the financial obligations you are facing are spiralling out of control. The farther behind you get, the more damage is being done to the venture's credit rating. You think it may be possible to save the venture by taking out another business loan to bring the payments current, but then you get quite a shock. The lender you have always used will no longer grant a loan due to your bad credit rating. You still entertain the idea of taking out another loan to make accounts current. Is it time to consider a bad credit small business loan? What kind of terms can you expect with a bad credit small business loan? A bad credit small business loan is one of several types of alternative style loans that lenders offer to enterprises that no longer qualify for conventional loans due to a poor credit rating. These alternative loans may include a hard money loan that will hold collateral like real estate or other tangible goods to guarantee repayment. A hard money loan is a secured loan, whereas a bad credit small business loan is unsecured, but often has very stringent terms that make it a doubtful advantage. For example, the interest rates are generally quite high and may have balloon payment, or very large payments that come due within a few years. There are usually very stiff penalties for missing a payment and an infraction such as this often can negate the contract and the creditor may be able to demand payment in full immediately. But when an owner is struggling to keep his or her enterprise, a bad credit small business loan may look like the only alternative. The are other alternatives and a professional debt counsellor should be consulted before taking out a bad credit small business loan and sounding the death knell to an already struggling venture. A good consultant will explain the debt management options to a bad credit small business loan such as debt consolidation or even debt settlement. Both of these options depend upon the skilled negotiation that the consultant will undergo with the creditors on the behalf of your enterprise. A settlement or consolidation will result in being able to make reduced payments, by consolidating the debt and by reducing the interest, therefore allowing more of the payment to address the principal. Often a settlement will result in the financial obligation being paid off much more quickly. Another advantage of debt reorganization to a bad credit small business loan is that it actually improves your credit score. Just by entering into a reorganization plan, an owner sends a signal to creditors that he or she is serious about curing the financial situation and the credit rating begins to improve, rather than continuing to sink. Speak to a debt relief consultant to find the solutions that are preferable to a bad credit small business loan, which is, after all, yet another financial obligation to add to the problems that are already in place. Check these links to learn more: http://www.commercialdebtcounseling.com/ http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml James Banks is a contributing writer to http://www.commercialdebtcounseling.com/and is currently writing some special articles to guide business owners on how to manage debt and avoid bankruptcy. For Free Information on KEYWORD and Debt Help Consultation, call toll-free 1-877-324-1218. By Debbie White Published: 5/3/2007 The Artile Source is: http://www.buzzle.com/articles/136236.html

Top 5 Resources For Small Businesses

When running a small business, resources to help you plan, maintain and succeed in your business are pretty plentiful. Yet, like many other things in life, some are better than others. Knowing which ones work, or offer the most useful information, can often be like looking for a needle in a haystack. So here, in no particular order, are my Top 5 resources for small businesses.

Small Business Administration

Although primarily for the North American market, the Small Business Administration, or SBA, continues to offer one of the best support networks for small businesses everywhere. Now over 50 years old, the SBA promotes free competitive enterprise so that even the smallest business can succeed. They offer numerous invaluable services, including sourcing financing for your project, expert advice from successful small business owners themselves, SBA programs on employment and business laws, special interest business groups and much, much more. If you are serious about starting or running a small business in America, this should be one of your first ports of call.

Inc.com

Almost every small business starts off as an entrepreneurial idea. Sure, it may turn into a large multi-national conglomerate (just look at Richard Branson and his Virgin empire), but 8 times out of 10 any small business starts as a one-man band. So the information to be found at Inc.com is well worth your time. Offering you the opportunity to sign up for free and advertise your business via IncBizNet, Inc.com is designed exclusively for small businesses to find like-minded business people and network. The site also allows you to host a blog, post free press releases and much more. For any small business owner it is an excellent starting point.

All Business

Just like the name says, All Business is a fantastic website that has pretty much everything and anything you need to help you start, run and expand your small business. The site is very well laid out and shares expert advice on franchising, labor laws, marketing and advertising and how to complete legal forms, as well as offering tutorial videos from experts in your industry. It even has a Business Purchase Free Quote Center, enabling you get a free, no-obligation quote from vendors that sell the products you need.

Microsoft Small Business

Okay, so it might seem strange to recommend a behemoth like Microsoft - yet as much as he is often a figure of fun for many, Bill Gates is one of the key proponents of helping small businesses get off the ground. Whether it is making anonymous donations to thousands of small businesses with great ideas, or providing excellent small business tools with his various software solutions, his Microsoft Small Business Center is an extremely useful stopover for any small business owner. One of the prime reasons for this is that it is truly international - simply select your country from the menu, and you will be taken to a hub that is full of the business information you need. With articles, tips and software all leading to your success, the Microsoft Small Business Center should be added to your bookmarks today.

Smart Biz

With the Internet playing such a large role in allowing more small businesses the chance to start up in the first place, the Smart Biz website is a well of information for online resources. This includes useful information on how to choose an e-commerce partner (very important if you are selling anything from your website), what software is best to run your back office, what telecom networks are best for your business, what advertising or PR agency to use and much more. Although you can certainly take some of the advice on display here and transfer it to your offline business, Smart Biz is perfect for the online entrepreneur or small business owner.

While there are literally thousands of small business resources, I have found that these offer the best choice and knowledge, particularly for free resources. Of course, if you find they are not for you, a quick search on Google will soon get you where you need to go. But for anyone looking for online resources to help you get started whether your small business is online or bricks-and-mortar, the companies listed here are some of the best.

Danny J Brown is the owner of Press Release PR, a boutique PR agency offering a full consultancy approach to your promotional needs. With over 15 years worth of experience as a freelance writer combined with a corporate marketing background, Danny is much sought after for his expertise and business marketing acumen. For more details visit the Press Release PR website.

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