In April 2014, the approval rate of small business loan at big banks touches its new height; however fell down at small banks and credit unions reported by Biz2Credit. Businesses with $10 billion or even more in assets rose to 19.4% from 18.8% in March 2014.
However at small banks the approval rate fell down to 51.1% in April from 51.6% in March. The approval rate of small business financing at credit unions also fell down to 43.5% from 43.6% in March. In April 2014 the small business owners submit their taxes and the banks use that tax filing data in their lending decisions.
The Bank of America Enhanced Its Lending To Small Businesses
The Bank of America improved its lending to small businesses in St. Louis and has recruited 15 financing officials to working with businesses with almost $5 million or less in profits. According to a report there have been almost 1,000 loan applications ranging from $25,000 to $3 million from businesses with more than two years in business and with credit score above 680.
SBA Help For Tornado Hit Homes and Businesses In North Alabama/Southern Middle Tennessee
On Wednesday, May 21, 2014 the Small Business Administration released an announcement in response to a letter from Bill Haslam, Tennessee Governor, requesting a disaster declaration by the Small Business Administration. That declaration covers the counties in Tennessee, Franklin, Bedford, Moore, Lincoln, Giles and Marshall. The SBA loans are available to affected people in Alabama counties Madison and Limestone.
“The Small Business Administration is highly committed to offering the victims with the most helpful response to support businesses of all sizes, renters and homeowners with government disaster loans” said Maria Contreras-Sweet, Administrator of The Small Business Administration.
Up to $200,000 loans are available to homeowners to repair destroyed homes. Property owners and renters are eligible for $40,000 to repair personal property, said Frank Skaggs SBA’s director of Field Operations in Atlanta.
Businesses of any size can get up to $2 million to repair damaged equipment, machinery or inventory said Walter Perry III, SBA’s Tennessee District Director.
Applicants may be qualified for a loan amount increase as much as 20% of the physical damages, as confirmed by the Small Business Administration, to help prevent the chance of future damage to property triggered by similar disaster.
For smaller businesses, small farming cooperatives, small aquaculture companies and many private non-profit firms of all dimensions, the Small Business Administration offers Economic Injuries Disaster Loans to help fulfill capital requirements triggered by the disaster. Economic Injury Disaster Loan support is available no matter whether the business experienced any physical damage to property.
The Interest Rates On This Disaster Loans Are:
Renters & Homeowners _ 2.188%
Non-profit organizations _ 2.625%
Businesses of all size _ 4%
The terms on disaster loans are up to 30 years. Both the amount and terms are set by the Small Business Administration.