Small Business Assistance

How do you determine if your small business is a minority? The answer is simple. Are you an Asian, Hispanic, Pacific Islander, African Indian or Alaska Native, or African American, and are you the sole owner of your business? If so, your business qualifies for a minority. The same rule can apply if you have 51% of your business owners who are a minority (or more). People who hare in the minority are in luck when it comes to minority small business loans. Women also qualify for minority small business.

There are funds that people set aside to lend to minority small business owners. If you find yourself in the category of being a minority, you’re actually far, far ahead of the game. The Minority Business Act is a federal agency which says, “Hey, we want to help those who are a minority small business get ahead.” People who are interested in small businesses and are in the minority have access to a special set of loans.

What do you need to keep in mind when applying for these loans? They look to see the loan can be repaid (i.e., that you have a way to pay it back and that you’ll pay it back on time). They look at your sales records that you have on file (so be sure to bring a lot of sales records with you!). If your business is fresh up from the ground they’ll want to see your business plan. Even if you aren’t just starting your business, it might not hurt to have some of the small business loans complete.

What do borrowers look for? They look for everything. They look at your personal spending habits (where does that money go every morning – to coffee?). They look at your credit record (which could hurt you if it’s low; so if it’s low, be prepared to apply for multiple loans). They look at any real estate that you have (that doesn’t mean they’re going to want to see your house – that means they need to know that you have one), your liquid assets, your tax returns (yuck – you just want to show everyone those, right?) – and your personal financial statements. (Another yuck).

Before you start applying for minority small business loans keep all those in mind. You do not want to have to find them later. It’s actually a good idea to keep all of the above in a fireproof box at your house for future records. Also include a detailed plan of how you’re going to repay the lender if you can – lenders always like to see this.

When you finally get the desired loan, check the following: what date the loan will be due, how much you must pay per month, the interest rate, and what happens if the loan is late. If you’ve checked all of those and you agree with the terms (if they aren’t on the paper, ask questions and demand that they be in the contract), then you’re free to sign the loan of your choosing.
Good luck securing your minority small business loan!

If you’re considering incorporating your small business you’re probably already aware of the main advantages, like protection of your personal assets. In this article I’d like to discuss some of the disadvantages of creating a separate entity for your business. There may be some negative factors you haven’t considered, since we’re not selling legal services we at Small Business Assistance don’t mind talking about them.

Loss of personal Tax Credits

Incorporating your small business might not result in a significant reduction of taxes. As a sole proprietor you may actually be able to take advantage of enough personal tax credits, espescially if you have a large family and low revenues.  Corporations are taxed for every penny they earn. Unless you’ve got some amazing legal and financial resources able to shift money from one entity to another like huge conglomerates, your small business will be required to pay taxes on all earnings.

Reduced Tax Flexibility

Corporations have far fewer options than solo proprietorships for coping with business losses. For example: If as a solo proprieter your small business incurs operating losses you have the option of reducing personal income for that year. A corporation, on the other hand, is forced to carry operational losses to another fiscal year in order to reduce the entity’s income in previous or following years.

Owners of incorporated businesses are often liable for more than expected

Limited liability is of course the main reason many small business owners wish to incorporate. What no one tells you is that personal guarantees to secure financing often render the owners liable anyway. Smaller small businesses with limited assets often have as much difficulty securing operating loans as individuals. If your business has a considerable lack of assets lenders typically insist on a personal guarantees for loans from the owners themselves using their personal assets in place of the coporation’s. So in the end the owners become personally liable.

Registration expenses associated with incorporating a small business can be prohibitive

Another disadvantage of incorporating over sole proprietorships are initial set up costs. A corporation is a far more complex legal structure and the fees associated with their creation reach into the hundreds of dollars. Over time maintenance fees and increased accounting costs can reach thousands of dollars.
One more tax return to file each year

Just because you have a corporation doesn’t mean that you no longer have to file a personal tax return. The increased accounting fees add up and as mentioned earlier if your corporation loses money, you must continue to pay yourself the same salary and in turn pay taxes on that salary. In addition to an additional tax return as a corporation you’re required to maintain additional paperwork like, corporate meeting minutes and registers of the board of directors their shares in the company.

Before rushing off to form a seperate entity for your company consider the seldom discussed negative aspects mentioned above and compare them to the benefits of incorporating a small business like yours to decide if you’re making a cost effective decision. Depending on your operation’s size it may be better to wait another year.

It’s easy to get a small bank business loan these days, especially if you have good credit. You can simply go to Google, enter small business bank loans into the search bar, and then find your freedom. People who are interested in getting loans directly from the bank can do so. How hard you search will determine what type of loan you should get.
When you find a small bank that you like first ask them if they accept people with your credit card ranking. If your credit card ranking is high, then you won’t have to worry about that, but if your credit card ranking is low, then you’re going to have to worry about what companies accept credit card scores and who doesn’t.
Acquiring a small business bank loan is easy to do, thanks to new improvements. You can easily find people willing to lend to those who are willing to start a small business. However, your search process is going to be a little different than most.
When you go to Google, hit ‘small bank business loan’. Not every bank can lend to people wanting to start a small business because sometimes those loans can be hefty. So when you’re searching for a loan makes sure you specify that the loan you are searching for is what is known as a small bank business loan.
When you’ve found companies that are willing to lend to your small business, then you’re starting to be in business. First, look at the interest rate of each loan. Is the interest rate something you’re willing to put up with? If not, toss it in another pile. Make sure that when you apply for the loan, the loan that you have is something you are able to pay back each month.
After you’ve determined all these outcomes, then you can start applying for your loans that you need. When you take out a loan, consider all aspects of your business – how much it will cost starting up, how much you will need for your business to run for awhile, and how much you can pay back each month. You do not want your start-up business to wreck your credit card score so don’t take out loans that you can’t pay back.
If you apply for several different loans then find the loans that will work best for you. Look closely at the day each month that you must pay the loan back. Look for the day each month that you have to pay the loan back, how much interest is on the loan, and how much you have to pay back each month. These are all important things to take into consideration when you have a loan that is due.
You can get a small business bank loan quite easily. When you are applying for the loan, however, do not be afraid to ask questions about what type of loan will work best for you. People interested in getting out a small business loan can easily obtain one. Talk to your local banker today.