8 Affordable Small Business Financing Options for The Post Pandemic Era

While the Economic Injury Disaster Loan (EIDL) and the Payroll Protection Programs (PPP) were beneficial for small business owners, as they say, “all good things must come to an end.” What it does not mean is that there are not great options out there for small business owners to take advantage of. We know that traditional bank loans and lines of credit are rarely out there but that does not mean access to financing has to be hard or expensive.

In this article, we will share a list of 8 different financing products which are easy to attain, and in some cases will cost you nothing.

By Thomas W. Tramaglini, Managing Director at BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com
www.thomastramaglini.com
About Thomas Tramaglini

What’s out there for small business owners?

In the post EIDL/PPP era, what is out there for small businesses? We get that question a lot from clients to we put together a list of 8 options for small business owners. Also, you can apply through our platform as we do not charge clients broker fees or add on extra origination charges, ultimately making the product more affordable than going through loan brokers or directly through a website for business funding.

Small Business Grants

Small business grants are free money for small businesses which are provided by government, non-public, and for-profit entities. Most small business grants provide business owners an avenue to apply for a bigger goal. For instance, the US Department of Labor has hosted grants to small businesses in places of high poverty for the development of careers and creation of new jobs.

While it takes time and effort to research and apply for grants, the end game can be worth it as small business grants are funds which do not need to be paid back.

To help you get started, we always keep and refresh small business grants which are available to small business owners (https://www.backofficedepot.com/smallbusinessgrants).

Term loans

Term loans are easy to apply for and usually provide small business owners terms from 1 year out to 5 years. Approvals are based on underwriting guidelines specific to the industry, amount of loan, monthly revenue, credit score, business credit score, and time in business.

Small business term loans usually have set fixed interest rates and payments can be daily,

weekly, bi-weekly, or even monthly. For most term loans under $150K the only documentation needed tends to be an application, business bank statements, as well as proof of business. Some lenders ask for taxes if your funding request is for more than $150,000 or on a case-by-case basis.

Average Range for Borrowing: $1,500 to $550,000

Rate(s): 7% – 38% APR

Credit Score Requirement: 600

To apply for pre-qualification (no credit pull) for a Small Business Term Loan Click Here.

Equipment Term Loans with Rebate

Some equipment loans carry rebates which can be advantageous for small business owners. That is, a lender will lease to the small business a piece of equipment and provide a rebate at an amount which is parallel to the costs of the equipment loan. For instance, if it is determined that the equipment loan is for $25,000, the equipment is then amortized with interest over 60 monthly payments, without origination or fees. Then, upon receipt of equipment, a rebate is provided for the business owner for the equipment at the amount the equipment costs.

What is beneficial about the loan is that to an extent, equipment is tax deductible under Chapter 179 of the IRS Tax Code so what you are paying back is tax deductible. Also beneficial is that this loan is not one that counts as an MCA position and having a longer term make the payments more affordable than traditional term loans.

Average Range for Borrowing: $20,000 to $100,000

Rate(s): 15% – 20% APR

Term(s): 5 years

Credit Score Requirement: 680

Business Credit Score: Paydex Score of 80

To apply for pre-qualification (no credit pull) for a 5 Year loan click here.

Line of Credit

Lines of credit have the most flexibility. For instance, the beauty of a line of credit is that you only draw what you need when you need to. Applications for lines of credit are fast and have

flexible terms.

Range for Borrowing: $1,500 to $250,000

Rate(s): 7% – 28% APR

Term(s): Variable

Credit Score Requirement: 680

To apply for pre-qualification (no credit pull) for a line of credit, click here.

Short Term Loan

Short term loans are those which go from 6 months to 5 years. Most short-term loans have

weekly payments and little underwriting requirements. Further, credit is less important and while rates tend to be higher for small business owners, there is minimal paperwork needed and funds can be disbursed in as fast as 1 hour.

Average Range for Borrowing: $2,500 to $500,000

Rate(s): 8.99% – 34% APR

Credit Score Requirement: 450

To apply for pre-qualification (no credit pull) for a line of credit, click here.

Consolidation Loan

Consolidation loans present a host of different options for small business owners who already have debt or would like to combine working capital already taken. There are

different consolidation programs available which small business owners can use to ensure that they have the maximum economic performance they can have.

For originators, loan consolidation is an art. There are virtually dozens of ways to consolidate loans which can be helpful. Once you apply, our team will craft an option which provides you a simple, affordable road map for consolidation and beyond.

Average Range for Borrowing: $25,000 to $500,000

Rate(s): 9.0% – 39% APR

Term(s): Up to 3 years

Credit Score Requirement: 500 and up

To apply for pre-qualification (no credit pull) for a consolidation loan, click here.

Equipment or Vehicle Loans

Perhaps one of the best loans small business owners can take is for equipment or vehicles. With relatively low rates, equipment or vehicle loans can be efficient and lower in cost than working capital loans or merchant cash advances. Plus, the benefits are that the loan does not usually go on the business owner’s personal credit and has a longer term, up to 6 years.

Further, many lenders do not count an equipment loan towards working capital loans or merchant cash advances, so small business owners may be able to acquire more capital. Some equipment and vehicle lenders may also provide additional working capital as well.

Average Range for Borrowing: $25,000 to $150,000

Rate(s): 6.0% – 21% APR

Term(s): Up to 6 Years

Credit Score Requirement: 600

To apply for pre-qualification (no credit pull) for an equipment or vehicle financing, click here.

Asset-Based Loans

Asset-based loans are loans that are collateralized with either equipment or real estate. Loans that have collateral attached to it are usually cheaper than regular term loans and less risks for lenders to provide funds.

Asset-based loans for small business owners can be a great way to access lower-cost working

capital and the terms can be beneficial as well. Also, asset-based loans usually carry simple monthly interest, which means you pay interest by the month, not the term. If the borrower pays the loan back earlier, they can save on the interest as they do not pay the months that they do not have the loan. This is a similar loan product to a line of credit.

Average Range for Borrowing: $10,000 to $500,000

Rate(s): Simple Monthly Interest (starting at 1.5% per month)

Term(s): Up to 5 Years

Credit Score Requirement: None

To apply for pre-qualification (no credit pull) for an asset-based loan, click here.

Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

What Do Small Business Owners Need to Know About Filing Their Taxes for 2021?

Did you receive EIDL or PPP proceeds in 2021 and you do not know how that is handled with regards to your taxes? What are the new requirements for the submission of taxes for small businesses in 2021? Indeed, for Small Business Owners Tax season brings on a layer of anxiety and additional work. While some small business owners use accountants, many small business owners file their taxes on their own. In this article, we provide an overview of some of the changes which small business owners should be aware of when preparing to submit their taxes either through an accountant or on their own.

By Thomas Tramaglini, Managing Director at BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com
www.thomastramaglini.com
About Thomas Tramaglini

Introduction

Tax season is in full swing. In most cases, corporate taxes are due to the Internal Revenue Service on April 15th. If you have an S-Corporation, your corporate taxes were due on March

15th (unless your fiscal year is not operating on a calendar year). There have been some changes that have been made by government changes or additions to legislation (much in COVID Relief legislation), so here is a short recap of some of the changes.

Small Business Tax Changes for FY 2021

American Rescue Plan

Credits for Paid Leave Because of COVID Vaccines

The American Rescue Plan of 2021 provides guidance on allowing small business owners to claim refundable tax credits for their employees. This is to reimburse them for the cost of providing paid sick and family leave to employees due to COVID-19. This includes leave taken by employees to receive or recover from COVID-19 vaccinations. ARP tax credits are available to eligible employers who paid sick and family leave from April 1, 2021, through September 30, 2021.

Employee Retention Credit: The American Rescue Plan extended the ERC until December 31, 2021.

PPP and EIDL

If you received Economic Injury Disaster Loan proceeds in 2021 the funds do not count as taxable business income for 2021. However, it is important to retain detailed records for an audit that can be ordered by the Small Business Administration (SBA) or Department of Justice.

You can use EIDL funds to pay taxes to lower your accrued liabilities.

Did your small business receive a PPP loan in 2021? Like EIDL, the Paycheck Protection Program (PPP) loan (forgiven or unforgiven) does not count as business income and you are eligible to write off allowable business expenses, even if the PPP loan was used to pay those expenses. Learn more about allowable uses of EIDL and PPP here.

Digital Payment Services (PayPal, Venmo)

If customers pay for services or goods through a digital pay service such as PayPal or Venmo and the amount is above $600 it should be counted as income. Beginning in 2022 those digital services are required to report those metrics to the IRS, and this can be an easy place for an audit.

Sick and Family Leave Credits

Sick and family leave credits: Eligible employers can claim refundable tax credits that reimburse them for the cost of providing qualified sick and family leave wages for employees on leave between April 1, 2021, and September 30, 2021, either for the employee’s own health needs or to care for family members.

401(k) Contributions to One Participant or Solo 401(k)

Business owners with no employees can contribute up to $58,000 in tax year 2021. In 2022, they can contribute up to $61,000 to a one-participant or solo 401(k), with an additional $6,500 catchup if the owner is over 50.

Meals

Do you claim business meals? Business meals at restaurants are 100% deductible for tax years 2021 and 2022 (up from 50%).

Other Tax Stuff

The standard mileage rate for business use of a vehicle is 56 cents per mile for the 2021 tax year. In the 2022 tax year, the rate increases to 58.5 cents per mile.

Charitable Gift Deductions increased: C Corporations are still allowed to raise the limit for cash donations from 10% to 25% for the 2021 tax year.

Get Help if Needed

If you are unsure about your tax needs, need to file taxes from previous years, or just have

questions, please contact our team of advisors today.

Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

BRP Onesta is not an accountancy and does not give advice on tax decisions which would be better answered by a CPA or tax professional. In other words, if you have a question, as your accountant.

Nearly Every State Requires Annual Corporate Filings: It Is Probably Time for You To File Yours.

Small business owners and entrepreneurs must balance the grind of their work each day with the compliance requirements to run their businesses effectively and legally. One compliance attribute which our clients and others deal with each year is the filing of their annual report. In this article we tackle what an annual report is and provide resources for small business owners and entrepreneurs to complete their reports.

You can also scroll down to see your state’s annual filing requirement(s)

By Thomas Tramaglini, Managing Director at BRP Onesta

info@BRPOnesta.com
www.backofficedepot.com
www.thomastramaglini.com
About Thomas Tramaglini

Corporate Filings are Important

Are you a small business owner? Did you file your annual report for 2021? Failing to file your business or corporation annual compliance documents can lead to a business being suspended or in some cases forfeited without small business owners knowing it.

In 2021, BRP Onesta surveyed over 1,000 (1,292) small business owners. 35.1% of the small business owners who responded said that they had no idea of whether they needed to file corporate filings for the year. We also audited 2,400 of our clients and nearly 20% of our clients had deficiencies in their corporate filings.

What is an Annual Report?

An annual report is a document filed by non-profit and for-profit corporations, limited liability companies, and limited liability partnerships must file with their state which the business is filed in, usually each year. The content of the annual report usually outlines the status of an organization.

Annual Reports Differ from State to State

State governments very in how they require small businesses to file annual reports. Some state Secretary of State offices (or similar agencies) require Annual Reports to be files on different timelines (like biennial or decennial).

Our team is regularly asked about when and what to do from clients regarding these filings, so we decided to put together a chart for our clients and others to review.

Critical Things Associated with Annual Reports

There are some critical things that are associated with annual filings, so we have compiled a list of things to remember when you are considering corporate filings:

  • While nearly every state requires an annual filing of some sort, not every state requires the same information. For instance, Maryland requires different reporting (taxes and operation) and New Jersey requires less information.
  • States that require corporate filings usually require a payment to keep the business in good standing.
  • Those business owners who fail to pay their fees can have penalties added.
  • States process filings at different rates of speed. Some are online only, some mail in only.
  • Small business owners jeopardize their Certificate in Good Standing Status if they fail to file their annual report. This can have a detrimental effect in areas such as funding, grants, or acquiring new licenses.

What Are Your State’s Requirements for Filing?

Considering each state has different requirements, we try to keep a running list on our website. For our list, we break down both LLC and Corporation requirements.

See your state’s filing requirements

Ensure Your Corporate Filings Are Done on Time and Accurately

If you are a small business owner or entrepreneur, we highly suggest using our company to prepare your corporate filings for you. It is inexpensive and will allow you to focus on your typical everyday work.

At BRP Onesta, we have a team of experts who prepare and file small business filings such as annual reports in all 50 States.

Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

Increased PPP/EIDL Oversight: Three Things Small Business Owners Should Do Now.

In the State of the Union Speech this past week, President Biden called for increased oversight into COVID-19 Relief fraud. This article provides some details of what the government is doing to find EIDL and PPP fraud. We include several easy steps that every business owner should take to be ready for if and when they are investigated or audited.

By Thomas Tramaglini, Managing Director at BRP Onesta info@BRPOnesta.com www.backofficedepot.com www.thomastramaglini.com About Thomas Tramaglini

Joe Biden wants to be the new ‘Sheriff” in town when it comes to Pandemic Program Fraud

In last week’s State of the Union Address, President Joe Biden announced increased investigation of fraud in the Pandemic’s Relief Programs. Both borrowers and lenders need to be aware that the federal government will continue to work with the Department of Justice to find those who abused the system.

However, it should be expected that there will be more and more investigations coming.

Politically, with the government doling over $1.2 Trillion in EIDL and PPP funding it would make sense that the Biden Administration might try to score some easy points against greedy small business owners by showing that the Administration is tough and protects the American people from fraud.

Practically, as demonstrated by the Department of Justice and other organizations such as the Federal Trade Commission, some small business owners committed fraud. However, it is my guess is that there is plenty of fraud to be found as the government does not usually go after small business owners unless they know that they can find the fraud.

How bad was the Fraud?

The purpose of this article not to describe how inherent the fraud was but from what some watchdogs are showing, it was pretty bad. However, Yahoo Finance writer Dani Romero’s post on March 4 was pretty telling:

“Data from Accountable.US, a watchdog group, found that individuals with no employees, and making over six-figures annually – but received $20,833 in PPP funding, which was the maximum by the legislation.

Separately, a new paper published by the National Bureau of Economic Research reveals that was used accordingly. Of the $510 billion of PPP loans distributed in 2020, $115 billion to $175 billion went toward supporting jobs that would have otherwise have been lost, while about $335 billion to $395 billion ended up with business owners and corporate stakeholders, the paper found.”

The Department of Justice Coming Down Hard on Pandemic Relief Abusers

The government is promising to find those who cheated the government during the pandemic. I have written other articles on the schemes that some heroes of the pandemic have utilized. For instance, some business owners used fraudulent 940/941 forms which they submitted to banks and received funds. Other small business owners changed their business’ documents and were able to get funding (Several Examples Here).

Last week, the Department of Justice charged the CEO of an alternative lender MBE Capital with both fraudulent loan and lender applications. According to the docket, “Martinez [the CEO] used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP. Martinez then used that approval to obtain approximately $932 million in capital to issue PPP loans and earn over approximately $71 million in lender fees. In addition, Martinez engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer. Martinez was arrested yesterday and will be presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.”

BEWARE! The DOJ is Showing Their Cards – They Are Using Data Analytics and Collaborative Tools Across Agencies to Find Those Worthy of Investigation

In several of the dockets and press releases that are available, the Department of Justice has indicated that it is using data analytics using collaboration between government agencies to find those who might have committed fraud.

I think that this is likely easy considering all they need to do is match data across databases. For instance, it cannot be very hard for the DOJ to match application data or funding data from the SBA to the information in the IRS. In fact, one of the reasons why so many EIDL expansion loans have been declined after approved for the original funding is because many of the applications could verify what the business owners reported on their original application to their taxes.

Could you be next?

Most small business owners who received their PPP or EIDL funds submitted correct and accurate data. Some did not.

It is surely plausible that small business owners did not try to defraud the federal government of Pandemic Relief Funds but made a mistake.

However, those who know that they used fraudulent documents or hired someone to submit the documents should understand that if the DOJ finds discrepancies that are blaring, expect an audit at a minimum.

“They are only going after the big fish” – NOT!

While the President in his State of the Union speech said he would be going after the most egregious cases, the database of fraud by Arnold & Porter suggests that there have been convictions with small business owners receiving as little as $10,000 in funding.

What does this mean for most business owners?

Most small business owners have nothing to worry about. However, with the announcement of more oversight and investigation, as well as the commissioning of a COVID-19 Fraud Enforcement Task Force and appointment of a Chief Prosecutor for Pandemic Fraud small business owners can expect that the government will be looking at two possible probes in their review:

  1. Were Pandemic Relief Program funds received legally?
  2. How were Pandemic Relief funds used?

Three things that small business owners can do to ensure they are ready for an audit or investigation.

  • Small business owners should review their loan application and forgiveness application to make sure that the proper loan amounts were applied for, received, and forgiven.
  • Some small business owners used a service or someone to apply on their behalf for their funding. Those who did this should know who did the application, what documents they provided, as well as have contact information for an auditor to contact.
  • Maintain a list with back-up of all expenditures which were made using the Pandemic Relief Funds.

Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

What is a Merchant Cash Advance (MCA)?

Working capital loans are important to small business owners as funds allow small businesses to expand or at a minimum become nimbler than it currently is. However, small business loans, especially SBA and bank loans are not easy to get so many small businesses resort to easier options like merchant cash advances. In this article, we describe in some depth merchant cash advances. We also provide some implications and offer lower cost avenues to borrowing money for small businesses.

By Thomas Tramaglini, Managing Director at BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com
www.thomastramaglini.com
About Thomas Tramaglini

Lack of Lower-Cost Options for Small Businesses

In recent articles I have provided an overview of the lower-cost options available for small businesses. Loans such as SBA loans are rare. For instance, in 2021 there were over 32 million small businesses in the United States and only a little over 12,000 SBA loans funded in the same year. That means, that the funding rate to small business is 0.00038%. That comes down to about 1 in 37,000 chance a small business would get an SBA loan.

These are not good odds for the typical small business owner, unless you are comparing to getting struck by lightning (1/114,195) or dying in an airplane crash (1/205,552).

Barriers in Place Make Sure Small Businesses

Overall, small businesses asking to borrow money present high risk to banks. Most banks do not want to lend to small businesses because about 1 in 6 small business owners (Voigt & Campbell, 2017). So, for banks to get to the place where they feel comfortable, they ask for and analyze every piece of paperwork they can. Banks also use terms such as Global Cash Flow (which most business owners cannot determine) and require full financials (which most small business owners do not have).

In short, it is my perspective that unless a small business has millions in accounts receivable or years of showing profits of 6-figures, the likelihood of getting a small business loan is grim.

The Devil is in the Details

According to the SBA data from the 7a lending report, in 2021 SBA loans totaled around $6.3 Billion. In comparison, the MCA industry alone (Rumore, 2021) totals around $19 Billion per year. Therefore, MCA dollars are about 3 times more prevalent in lending than SBA 7a loans.

Alternative Loans or Online Loans

Because it is so difficult for small business owners to get a small business loan at a bank (see This Blog Post for Data), there are options that present a much easier route. One such option are alternative loans or online loans from lenders who offer much shorter terms (6 months to 5 years). There are many advantages to these loans (time, less paperwork, fast approvals) and you can learn more about or apply with the options listed here. It is important that if you want to apply for a term loan or line of credit with one of these lenders you speak with someone who has knowledge of these products. Although the approval process is relatively fast, these lenders will still ask for financials, taxes, and other documents. Further, you can assume you will receive a hard pull on your credit and in some instances, they will ask to secure your loan. Our team of advisors has the knowledge of the different programs out there, can explain your options, and will prevent your application from getting shopped around the internet which will hit your credit negatively.

The Merchant Cash Advance

A Merchant Cash Advance (MCA) is one of the easiest funding options for small business owners because MCAs are unsecured, do not require strong credit, usually do not require collateral, and also require little documentation (if any). The average MCA file can be funded within a day and usually requires several months of business bank statements.

An MCA is not a loan but an advance of a business’ future receivables. Lenders gauge how much to advance a small business owner in several ways, including previous credit card sales and revenue going into their business bank account. Variables such as industry, number of deposits, daily balances among others are used by the lender to hedge risk. Regardless, MCA lenders offer to advance a portion of a small business’ future sales as well as an agreement with the business owner on the percentage of future sales which are being sold to the lender.

Interest and Terms

MCAs do not carry interest. Advances carry factor rates, which are also called buy rates that are simply an agreement of how much of a small business’ future sales will be paid to the lender. Some advances may also collect repayment terms by taking a portion of business’ credit card receipts each day as well until their agreed sale of future receivables is completed. MCA payback frequency varies depending on the risk and bank account statistics. For instance, if a borrower wants to have a monthly or weekly payment the lender gauges that opportunity off the average daily balance of the business in the business bank account. When daily balances are variable or lower MCA lenders may require a daily payment.

Probably the most negative part of an MCA is cost of money. MCAs can be expensive. That is, MCAs can be as high as +50% in payback. Also, most advances carry origination fees for the work by the lender, which can be as high as 10% of the loan. MCA cost of money is like how credit card cash advances operate and, in some cases, better.

Advantages of MCAs

Merchant cash advances have several advantages for small business owners, and some can include:

  • Fast funding – Some MCA companies can fund small businesses in 90 minutes.
  • Most MCAs do not have UCC liens
  • MCAs are not usually reported on personal credit
  • Funds are unsecured
  • Payment frequency can be flexible at times
  • Most MCAs do not carry a personal guarantee
  • Easily refinance options which can cut costs
  • No early payback penalties
  • Small business owners can build a relationship with the lender ultimately securing better programing
  • Few required documents (including taxes) for funding

IMPORTANT – Speak to Someone with Expertise and Who Cares (without obligation or cost)

It is imperative to speak with someone who is impartial when it comes to your borrowing options. MCA brokers make money off of your MCA (Points added for MCA brokers to the buy rate and in turn the sell rate is 10-20% higher than the buy rate). Many of the rip-off and illegal collection activities of lenders have been exposed and prosecuted in recent years as well (SEC and FTC have become more involved in holding some lenders such as Quarterspot, Yellowstone Capital, and RAM Capital.

That said, you should speak to someone that knows about the different options and importantly, tells you what they believe you can be approved for and WHY! This includes should include SBA and USDA to MCA options.

Up front, I believe that phone sales can be very valuable, if the person calling you is ethical and follows the rules of calling.

However, if you are called and asked the following it is probably an MCA broker and you should think twice before engaging in their questions.

Common MCA Broker Script:

  • What industry are you in?
  • What is your average revenue?
  • How many deposits do you make a month?
  • How many years have you been in business?
  • How many positions do you currently have?
  • What is your credit score?
  • Do you have any bankruptcies or judgments?

Our Team Cares – We Offer Lower Cost Options

Are you curious about what you would qualify for or want a specific product? Call us at (888) 315-2822 or simply request a no-obligation call. One of our team members will go over what we believe you can qualify for. In many cases, you do not compensate us in any way as we participate in volume profit sharing with lenders and never pass those costs on to you. What that means is that if the buy rate is 25% (cost of money from the lender) we will not increase your cost 10-20% to arrive at a 45-50% sell rate. Most of the time we can even cut your current payments without paying interest on interest.

Importantly, we care and will never push you in the wrong direction. So, if you currently have an MCA or MCAs and you want to consolidate those MCAs, give us a call. If you want to save money on a new MCA, we can get you there.

References

(Rumore, 2021) https://businessdebtlawgroup.com/state-of-merchant-cash-advance-during-coronavirus-pandemic/

(Voigt & Campbell, 2017) https://www.nerdwallet.com/article/small-business/study-1-in-6-sba-small-business-administration-loans-fail

Dr. Thomas W. Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

What Grants Are Available For Small Businesses?

Are you a small business owner and looking for a Small Business Grant? We always keep a running list of current grants available on our website and we just updated it.

By Thomas Tramaglini, Managing Director at BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com
www.thomastramaglini.com
About Thomas Tramaglini

Are you a small business owner and looking for a grant to support your business?

Our team at BRP Onesta continually looks for and list grants that are available for small businesses on our website.

1) Subscribe to our Blog to keep informed and receive updates regularly.

2) Contact our team if you need assistance with your grant application.

Check our list out now.

Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, an organization that that supports small businesses. BRP Onesta offers a host of important and affordable solutions that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

What SBA loan should I apply for?

Although small business owners are interested in applying for an SBA loan, routinely they do not know where to start? In this article, we describe the different types of SBA loans and offer a list of lenders who directly fund SBA loans.

By Thomas Tramaglini, Managing Director at BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com
www.thomastramaglini.com
About Thomas Tramaglini

SBA Loans – What type is best for you?

SBA loans have grown in popularity, especially since the pandemic. The number of small businesses who received funding from popular programs such as the Payroll Protection Program and the Economic Injury Disaster Loan, a previous analysis we did suggests that nearly 1 in 2 business owners have received funding from an SBA product.

However, don’t be fooled! Just because you received an EIDL or PPP loan does not mean you will qualify for a traditional SBA loan.

In fact, in 2021 the SBA reported that there were 32 million small businesses in the United States and only about 12,000 received an SBA 7(a) loan. So, about 0.038% of small businesses in the country did not receive an SBA loan. Since only about 12,000 SBA loans (7(a)) were doled out in 2021 it would suggest that banks are not so motivated to lend to small businesses.

Because this number is so low many small business owners choose to borrow using online or alternative lending options.

If you are a small business owner and you want loan options that are similar to an SBA but without the barriers of SBA, contact our team of advisors now.

Yet, if you are going to apply for an SBA loan, you should know what you are applying for.

Here are different SBA loan products which small business owners can apply for:

PPP and EIDL

Before I get into the other SBA loans, at least 5 times a day we are asked by small business owners if they can apply for the EIDL or if there is another round of PPP coming.

Currently, EIDL is still an active program. However, the date for new applications ended on December 31, 2021, and the SBA is only funding those who applied before that date. The majority of the EIDL applications being considered at this time are those who were declined originally and are in the reconsideration process.

If you are a small business owner and had your EIDL application declined: We have a high success rate of working with small business owners getting their declined EIDL applications funded – contact us and one of our advisors will go over your file.

The PPP program had 2 draws and small business owners would love to get another draw of forgivable funds. To date, there are no plans on providing another draw of PPP funds.

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The difference between EIDL and SBA loans

The major difference between EIDL and other SBA loans is that the EIDL directly comes from the US Department of Treasury and the other loans come from approved lenders. True SBA loans are loans from approved lenders guaranteed up to a certain amount (program dependent) by the federal government.

SBA 7(a) and Express Loan (same guidelines)

SBA 7(a) loans are the most common loan program offered by SBA. The SBA suggests that the 7(a) can be used for business real estate purchases, as well as short- and long-term working capital, refinancing current business debt, as well as the purchase of furniture, fixtures, and supplies. The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. SBA 7(a) loans are not forgivable.

SBA 504

The Certified Development Companies/504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation. 504 loans are available through SBA’s community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA. SBA 504 are repayable over 10 – 20 years and pegged to an increment above the current market rates. SBA 504 loans are not forgivable.

Microloans

The SBA microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000. SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.

What are the most prevalent banks for SBA loans?

The US Small Business Administration keeps a list of their 100 most active SBA lenders on their website. So, if you are going to apply for an SBA loan, you need to know who to apply for the loan from. While this list changes frequently, here is a list of SBA’s most active 100 banks.

Not all banks are created equal

In 2021, 1,189 lenders funded SBA 7(a) loans. We work with over 100 SBA banks, and it is important that one knows what these banks are looking for. One does not simply just call the bank and apply for an SBA loan. Lenders can be particular in who they want to fund.

  • Some of the SBA lenders prefer that you do your banking with their bank
  • Some SBA lenders prefer to work with certain industries
  • Some SBA lenders only serve a region or a small area

Almost always better to use an Agent for an SBA loan

Using a specialist may be one of the best ways to attain an SBA loan. Specialists or “Agents” understand what goes into an SBA loan application. Agents like BRP Onesta specialize in both knowing what is needed for approval for an SBA loan and can help a small business owner prepare what is needed for the bank. In the end, small business owners will save a lot of time and money using an agent. If you have any questions or would like to apply for an SBA loan, we will help you.

Do you want to apply for an SBA loan? Do you think you are ready to qualify now? Do you want to find out if you can get pre-approved for an SBA loan before you apply?

If you answered YES to any of these questions, please contact our team at any time for a free, no-obligation phone consultation with one of our specialists. We will set up a time with you and go over what you are looking for, what we think you can qualify for, and what we can do to get you to the finish line.

We also have a host of small business funding opportunities, from equipment loans to small business grants which we keep updated each week (click here)

References

SBA EIDL Loan Data: https://www.sba.gov/sites/default/files/2022-02/COVID-19%20EIDL%20TA%20STA_02032022_Public-508.pdf

SBA PPP Loan Data: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-data

SBA Office of Advocacy Data: https://cdn.advocacy.sba.gov/wp-content/uploads/2020/11/05122043/Small-Business-FAQ-2020.pdf

SBA Loan Descriptions: https://www.sba.gov/funding-programs/loans

Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

Are SBA Loans Forgivable?

In this article, we tackle SBA loan forgiveness.  We identify what SBA loans are forgivable and how to get those SBA loans forgiven.  This article is part of our series, SBA Loans for Small Business Owners: The Complete Beginners Guide, we share our experiences and expertise to answer questions that small business owners have about SBA loans. 

By Thomas W. Tramaglini, Managing Director at BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com
www.thomastramaglini.com

Sign Up for Our Secret Sauce Newsletter for Small Businesses and receive the link to 1 Tradeline Who Gives Business Credit for Free Click Here

Business Owners Confused

Are you a small business owner that has an SBA loan?  Do you receive an SBA loan in recent years?  Is your loan forgivable?  Are parts of your loan forgivable? 

Business owners are confused and continue to be confused.

According to the SBA, there are over 31 million small businesses in the United States.  Using SBA data, of the 31 million+ small businesses, over the last 5 years approximately 12 million loans have some sort of SBA tag to it.  So, about approximately 1 in 3 small business owners have recently had some sort of SBA small business loan.  We believe the percentage could be closer to 1 in 2 with the number of small businesses that the SBA Office of Advocacy also suggests that many businesses have no employees, or they may be dormant.

Since so many small business owners have a loan associated with the SBA in some way, we frequently are asked if they must pay back their SBA loan. As part of our blog series SBA Loans for Small Business Owners: The Complete Beginners Guide, we provide some simple answers below.

Access to SBA Loans Blew Up in 2020

Before 2020, I am not sure if anyone had ever seen an SBA loan be forgiven.  In fact, according to the Small Business Credit Survey suggests that before the Pandemic, only about 1 in 5 small businesses were actually able to secure an SBA loan of some type. 

So, we know that since April 2020, the number of small business owners having some sort of associated SBA loan is 30%-50% higher.    

Mass Confusion Prevalent

Regardless of your educational level, time in business or the size of SBA loan, it was and still is clear that small business owners are confused about what is forgivable and what is not.  A recent report in the Wall Street Journal suggests that the majority of small business owners continue to be confused about SBA loans.

What is considered “Loan Forgiveness?”

The advisors at Brothers Road Partners LTD (BRP Onesta) are asked about Loan Forgiveness every day.  Simply, Loan Forgiveness means that you do not have to pay back the loan.

With this definition, we still live by one tenet set by Managing Director, Thomas Tramaglini: Until the loan is forgivable, the business owner is responsible.  This is good advice considering the confusion surrounding SBA loans.

What SBA Loans are Forgivable?

Below is a list of SBA loans (and we included advances/grants) we have helped our clients get or manage and whether or not the loans are forgivable:

Payroll Protection Program (PPP)

PPP loans were designed to provide an incentive for small businesses to keep workers on the payroll (List of PPP allowable uses).  Like other SBA loans, PPP loans were underwritten, funded and forgiven by approved SBA lenders. So far, there have been 2 rounds of PPP available to small business owners. PPP loans are forgivable if the borrower spent the funds and can provide proof that the funds were used for the intended purposes.  To date, about 87% of the PPP loans have been forgiven.

Getting your PPP loan forgiven is not hard as long as you used the money for what it was intended for.  The SBA has made it easier to apply for forgiveness with the website https://directforgiveness.sba.gov/requests/borrower/login/?next=/ Depending on if the bank the PPP loan was funded from opts to use this portal, this site is easy to apply for the PPP loan through.  Otherwise, each bank either directly has their own process (PNC Bank, Fountainhead) or may use a 3rd party for forgiveness (Scratch).

Is your PPP loan(s) still not forgiven?  Contact us today – we can help. 

Click here to find out here whether your PPP loan or loans are forgiven.

Verdict: Forgivable

Economic Disaster Injury Loans (EIDL)

The EIDL loan program was extended to Pandemic relief under the CARES and American Recovery Acts.  EIDL loans are loans directly provided to small business owners by the US Department of Treasury.  After the initial EIDL loans were provided for 6 months of working capital, the loan was extended to those who qualified for up to 24 months.  The terms of this loan are 2.75% (non-profit) to 3.75% (for-profit) and go out to 30 years.  This direct long-term loan program from the SBA is not forgivable.

List of EIDL allowable uses

Verdict: Not Forgivable

Do you need help with EIDL Reconsideration?  Contact us today – we can help?  We have helped numerous clients with their EIDL loans and loan expansion.

Misuses of EIDL and PPP Loans:  If you are curious about some of the misuses of PPP and EIDL, I wrote a couple of articles on the topic:

The Front-Line Zeroes of the Pandemic: Ranking our top 15 EIDL/PPP SM Business Owners Accused or Convicted of EIDL/PPP Fraud

Fake 940/941s, More Lamborghinis, Rolexes and Real Estate, Oh My.  More Fraud from PPP/EIDL

EIDL Advance | EIDL Targeted Advance | EIDL Supplemental Targeted Advance

EIDL Advances has been rolled out in a host of different ways.  That is, the government has found different ways to provide funds set aside for small businesses.  From $1,000 per employee up to $10,000 for any small business that qualified to more targeted small businesses that mainly drove funds to lower income areas generally, EIDL Advance programs have been intended to not have small business owners pay back funds.  It is important to note that some EIDL Advances were rolled into PPP loans however, SBA guidance is all over the place on that topic, so our disposition is that if you received an EIDL Advance, you likely do not have to pay the funds back.

Verdict: Forgivable

SBA 7(a) and Express Loan (same guidelines)

SBA 7(a) loans are the most common loan program offered by SBA.  The SBA suggests that the 7(a) can be used for business real estate purchases, as well as short- and long-term working capital, refinancing current business debt, as well as the purchase of furniture, fixtures and supplies.  The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates.  SBA 7(a) loans are not forgivable.

Verdict: Not Forgivable

SBA 504

The Certified Development Companies/504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation.  504 loans are available through SBA’s community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA.  SBA 504 are repayable over 10 – 20 years and pegged to an increment above the current market rates.  SBA 504 loans are not forgivable.

Verdict: Not Forgivable

Microloans

The SBA microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000.  SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.

Verdict: Not Forgivable

Implications

Over the past two years our team at BRP Onesta has been hit with many questions regarding whether or not one has to pay back their SBA loans.  In this article, I have provided an overview of different SBA loans and whether they are forgivable. 

If you have any questions, you can contact us or reach out directly to SBA. 

Do you want to apply for an SBA loan?  Do you think you are ready to qualify now?  Do you want to find out if you can get pre-approved for an SBA loan before you apply?

If you answered YES to any of these questions, please contact our team at any time for a free, no-obligation phone consultation with one of our specialists.  We will set up a time with you and go over what you are looking for, what we think you can qualify for, and what we can do to get you to the finish line.

We also have a host of small business funding opportunities, from equipment loans to small business grants which we keep updated each week (click here)

References

SBA EIDL Loan Data: https://www.sba.gov/sites/default/files/2022-02/COVID-19%20EIDL%20TA%20STA_02032022_Public-508.pdf

SBA PPP Loan Data: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-data

SBA Office of Advocacy Data: https://cdn.advocacy.sba.gov/wp-content/uploads/2020/11/05122043/Small-Business-FAQ-2020.pdf

SBA Loan Descriptions: https://www.sba.gov/funding-programs/loans

Dr. Thomas W. Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

Thomas Tramaglini

SBA Loans for Small Business Owners: The Complete Beginners Guide

Research over the last 10 years suggests that about 1 in 5 small business owners qualify for SBA loans. Yet, when it comes to loans, small business owners are primarily interested in an SBA loan. In a series of blogs, we explore SBA loans and what small business owners can do to get qualified.

By Thomas W. Tramaglini, Managing Director at BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com

Sign Up for Our Secret Sauce Newsletter and receive 1 Tradeline for Business Credit for Free Click Here

Introduction

For years, BRP Onesta has originated millions of dollars in SBA loans for small businesses. Clients and prospects almost always request SBA loans when seeking funding for their business. Yet, while the small business owners we interact with want an SBA loan, the majority of our interactions yield that they know little about SBA loans.

Why are SBA loans so sexy?

What is so attractive about an SBA loan? Two reasons are that they carry low interest rates and have long terms. Small business owners can use loan proceeds for a host of purposes (equipment, machinery, buildings or working capital). So, when a loan has some of the attributes I listed, of course SBA loans would be the first choice.

What is an SBA Loan?

Although I will spend some time to do a bit deeper of a dive on the subject in future blog posts, it is important to describe what an SBA loan is. Also, for the purposes of this blog I will NOT include Economic Injury Disaster Loans (EIDL) or Payroll Protection Program (PPP) loans in the context of my description. An SBA loan is a loan (from an approved SBA lender) which the majority of the loan is guaranteed by the U.S. Small Business Administration. Guidelines for these lenders to use for SBA loan programs are set by the SBA and once an SBA loan is approved by the bank, it is sent to the SBA for their review and approval.

See Different Loan Opportunities for Small Business Owners to Take Advantage Of

Most Small Business Owners Do Not Qualify for SBA Loans

Indeed, SBA loans are sexy to many small business owners. Yet, a small number of small business owners get funded with an SBA loan. One dataset and report that I love to comb through comes from Fed Small Business, a workgroup coming from the 12 Federal Reserve Banks and small business partners (about) (Small Business Credit Survey). Each year, the group conducts a survey of small business owners from all 50 states. Questions vary from borrowing to organizational health. Results provide a generalizable set of data for researchers to paint a picture of the status of small businesses. In laypersons terms, their survey is a measuring stick of that describes different aspects of small business health in the United States with approximately 90% accuracy.

In the last SBCS survey that provided an accurate description of small businesses and SBA loans, around 1 in 5 businesses were able to secure SBA loans as compared to other sources of borrowing capital. Considering how sexy SBA loans are to small business owners it is disheartening and eye-opening that such a low number of small business owners actually can secure such funding.

We Curate Small Business Grant Opportunities Here

Small Business Owners Need to Know More About SBA Loans

Clearly, there is a disconnect of some type considering the high percentage of small business owners who tell us they want SBA loans but in reality, qualify for one. So, we decided to write a series of small business blog posts that address this gap. We aim at better educating small business owners and provide ways that small business owners can prepare for applying for an SBA loan. The focus will be to answer many of the questions that we are asked each day at BRP Onesta.

Some of the topics that we will explore will include:

  • What types of SBA loans are there?
  • Are SBA loans forgivable?
  • Where to apply for an SBA loan?
  • How do small businesses qualify for an SBA loan?
  • What is the SBA loan process?
  • What options are there for small business owners who do not qualify for an SBA loan?
  • How can the typical small business owner get pre-approved for an SBA loan and what pitfalls they should avoid?
Is There Hope?

Yes, of course there is hope. Up front, no, all small business owners will not qualify for an SBA loan. However, while only 1 in 5 small businesses seem to be able to qualify for an SBA loan, with support organizations like ours (www.backofficedepot.com), our ratio is much higher. From January 2016 – present, about 62% of our clients were able to qualify for SBA loans after work we did to support their application process and applying at the right bank. The bottom line is that in 2020 the SBA reported that there were 31.7 million small businesses in the United States and there is plenty of funding out there for small businesses to use to grow their brand, their products, services, and their customer base and we want to help small businesses find their way forward with the best possible margins.

Contact Our Team Today To See If You Qualify For An SBA Loan
Do you want to apply for an SBA loan? Do you think you are ready to qualify now? Do you want to find out if you can get pre-approved for an SBA loan before you apply?
If you answered YES to any of these questions, please contact our team at any time for a free, no-obligation phone consultation with one of our specialists. We will set up a time with you and go over what you are looking for, what we think you can qualify for, and what we can do to get you to the finish line.
We also have a host of small business funding opportunities, from equipment loans to small business grants which we keep updated each week (click here)

Dr. Thomas W. Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow. BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

Are You on The Lending Blacklist? You might be surprised.

Lenders are getting smarter.  So we share a few tools that online and MCA lenders use to gauge fundability.

By Thomas W. Tramaglini, BRP Onesta
info@BRPOnesta.com
www.backofficedepot.com

Our company routinely works with small business owners to stabilize or grow their businesses.  One important step that small business owners require our assistance is with the attainment of capital for their businesses.  In a previous post, I discussed some of the statistics of how many small businesses are looking to borrow money for their business. Whether for consolidation of debt, expansion, real estate, or equipment, underwriting of any loan or advance, we generally are asked by small business owners what the lenders are looking for in order to get an approval.

Through professional conversations with brokers of merchant cash advance and online loans in the past, brokers seemed to have lenders who they suggested did not thoroughly vet client applications ultimately providing funding to small business owners who probably should not have been funded.  While this has not been our experience, clearly the shenanigans of the merchant cash advance and online loans have been in existence for some time.

So, we decided to explore some ways that lenders vet possible lenders in the online and alternative lending space.

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In no way can one blog (or probably a book) do any justice to go through the art (and it is an art) of how banks or lenders go about their approval processes.  We did however, find three tools that online lenders (i.e., OnDeck, PayPal) and alternative lenders (MCA, equipment) favor in vetting their applications.

What are the lenders looking for?

Simply put, there are many different variables that go into an approval.  Yet, regardless of how strong a small business’ financials or bank statements look, one attribute that will kill any deal is whether a business has ever had issues paying back capital (defaults, slow pays, Judgements, fraud, etc.).

Three Tools that Lenders Use Which Unofficially Serve as A Blacklist

Clearinghouse Data

Online and alternative lenders use different clearinghouses who curate a multitude of data.  From publicly reported data to credit records, these datasets provide a robust amount of information about potential borrowers and businesses.  There are a few clearinghouses our there (others like Chex Systems) but here are a few that we know are commonly used.

LexisNexis

LexisNexis provides business research and risk management services to various industries. These include lenders, insurance companies, vendors and more. These companies use LexisNexis to verify personal and business credit history (PayNet does this too), public records (PACER), and application history. And they use LexisNexis to assess risk on applicants. Inaccurate information, data which doesn’t match your application, or negative items in your LexisNexis report can have a drastic negative impact on your business. This is especially true during the application process.

Business owners can request a copy of their LexisNexis report and decrease the probability of surprises during the application process.   Click Here to Request Your Report

DataMerch.com

Founded in 2015, DataMerch.com is a popular tool for online and alternative lenders.  Lenders who belong to DataMerch.com upload their lending experiences ultimately painting a picture of many small businesses who have taken loans and merchant cash advances with their companies.  Recently, DataMerch.com reported that they now have over 50,000 records on file.  

Why is this important?  DataMerch.com provides lenders a robust database so they can better inform their approval process.  These records provide categorical data such as suspicious activity, slow payers, split payers, and COVID-19 Hardships.  Lenders can also find out if small businesses have taken on recent or defaulted funding that might not appear in a business’ bank statements.  Regardless, small business owners should know that lenders are not stupid and if you have had issues with your MCAs or loans, you will probably have some issues taking another loan or MCA.

NYS Court System

One place that online and alternative lenders check for issues with loans, MCAs or just other issues which might be a red flag for borrowers is the New York State Unified Court System (New York State Courts Electronic Filing).  This website yields a host of legal cases from New York State but importantly, most alternative lenders are in New York so anytime there is a default, and a lender files a Judgement, that Judgement is listed. 

If you are a small business owner and default on a loan or merchant cash advance and you are served with a Judgement, it will likely be listed here.  The good news is that you can satisfy your Judgement which will be listed on the site after doing so.  The bad news is that once you have a Judgement listed on this website it becomes very difficult to ever get funding for your business ever again.  In some ways, have a Judgement posted on this site can be worst than a bankruptcy. 

Would you like to see if you have anything listed?  https://iapps.courts.state.ny.us/ is the link that used to access the files.

So what?

I wrote this Blog because when our clients get declined for loans or merchant cash advances, they tend to ask us why?  Although lenders do not share much information with us, we do know that lenders are getting smarter about who they provide funds to.  That is, lenders want to (and should) know that someone requesting to borrow funds will pay back their debt.

Over the years, we have seen just about everything small business owners have done to get funded.  Specifically, we could write a book about some of the shenanigans some business owners who have negative payment histories have pulled to get funded.

When our clients or small business owners get declined for loans or merchant cash advances and ask why? Notwithstanding that many times the clients do not tell us they had issues with paying a loan or merchant cash advance, they should understand there are tools that lenders use, and it is very possible they are blacklisted. 

So, if you are a small business owner who has had issues with paying back a lender, lenders are getting more informed, and they should be aware of this.  Lenders are not stupid and if you had issues paying back a loan or merchant cash advance, rightfully so you will probably not be able to access more capital for your business.  In fact, you will probably not find an easy road finding capital for another business as well.

Read Other Blog Posts at www.backofficedepot.com/blog or www.tomtramaglini.com

Dr. Thomas W. Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.