Funding Small Businesses

Published in the Mount Olive Chronicle on February 24, 2006

Rising property taxes concern every homeowner, especially in Mount Olive, and one solution to this issue is to grow the tax base so that more pay less instead of less paying more. Towards achieving this solution, there are now several initiatives underway to grow Mount Olive's commercial tax base, but starting new businesses, relocating existing businesses, and opening new locations for existing businesses all require capital to succeed.

If you are a homeowner in Mount Olive and you are looking to open a new business, the Small Business Administration (SBA) recommends that you should always use the equity from your home instead of applying for a business loan, because your business loan will always have a higher interest rate than a good, creative mortgage. A bank will normally ask you to put up your home as collateral anyway.

If you have a small business outside of town that you are considering moving to Mount Olive, or if you are considering opening a new location in Mount Olive, commercial programs range from signature loans that can give you up to $100,000 just based upon your credit and signature to more traditional, full documentation loans that lend upwards of several million dollars. SBA direct loans may be another option.

One of your next questions will be to lease or to own, so keep in mind that the advantages of home ownership over renting also apply to owning commercial property. You may increase the value of your business through the annual appreciation on a commercial condominium or other commercial property, and financing is available up to 80%, amortized up to 30 years. As the property appreciates in value, you may choose to cash out some equity or to refinance and get into a better rate. Consider that $1,000,000 in real estate appreciated just 10% in one year is a $100,000 gain. You can cash out that gain while retaining ownership of the property, and use that cash to grow your business.

Whether you are a small business owner or an aspiring entrepreneur, business loan and commercial mortgage programs are available for those with alternative credit and less-than-perfect credit. Some programs truly require no documentation, such as tax returns or asset verification. Programs are also available for foreign nationals.

Vivian Gaspar is in the business of "Funding American Dreams" through business capital/loans, commercial mortgages, investment properties, residential mortgages, reverse mortgages, cash flow for the unemployed, and personal credit repair. For more information about her products and services, or to schedule Vivian as a guest speaker for your organization, call 800-899-1946 or visit www.VivianGaspar.com.