SBA Halts Small Business Loans

If you’re a small business owner looking to the government to help out with a 7(a) small business loan for new equipment or to expand your business, get in line. The Small Business Administration has already reached its $18.75 billion ceiling for fiscal 2015. Unless Congress agrees to raise the ceiling, small business owners will have to wait until October 1 for approval. But if you need cash now, or you just want to try another avenue, consider alternative lending.

Here are two options:

Crowdfunding: Turn to your peers, your friends, and friends of their friends. This can be an effective way to gather money needed to help a business, but be aware of the time it takes to get a strong campaign off the ground.  

Peer-to-peer lending: Apply online and get an answer quickly (generally in less than a week, sometimes sooner). It’s a fast-growing way to leverage money with no pre-payment penalties, low rates and better terms than a traditional bank.

If you do want to go the SBA route, applications will continue to be accepted and reviewed, but unless Congress loosens the purse strings, don’t expect any cash to flow until fall.

Source: http://www.manta.com/resources/tip-of-the-day/sba-halts-small-business-loans/