Do I qualify for an SBA Loan?

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What is The Small Business Administration? The Small Business Administration is a United States Government Agency helping support small businesses through financing programs and education as well as hands on training. There are several types of loans available through the SBA. The most common are 7(a) guaranteed loans and 504 Real Estate loans.

The 7(a) Loan Guarantee Program is designed to help entrepreneurs start or expand their businesses. The program makes funds available to small businesses through qualified banks and non-bank lenders. The 504 Fixed Asset Financing Program is administered through non-profit Certified Development Companies throughout the country. This program provides funding for purchasing real estate or construction. Of the total project costs, a lender provides 50% of the conventional first financing, a Certified Development Company provides up to 40% of the financing through a 100% SBA guaranteed debenture, and the applicant provides approximately 10% of the financing except for special purpose.

What does it take to obtain a SBA Loan? The general requirements include: the applicant must be a for profit business, the business must be independently owned, the firm must be non-dominant in its field, the applicant must located in the United States, and the applicant must demonstrate a need for the request. These are the general requirements but in order to be eligible, there are three types of criteria:

1) Business type and size:
Eligibility is determined by The National American Industry Classification System (NAICS) based on size and type of the business up to 500+ employees and 6 – 25 million in revenue depending on type of business.

2) The use of the proceeds:
A) Permitted uses of proceeds - the use of the proceeds must fall into 5 main categories: working capital, debt refinance, inventory, equipment, and real estate. Generally the term should be the shortest appropriate to the business’ ability to repay the debt
B) Non-Permitted uses of proceeds – SBA Loans cannot be used to repay owners, pay delinquent taxes, refinance debt (to a creditor who stands a risk of loss if loan is not granted), personal investment, loans to businesses who have defaulted on previous government loans.

3) Personal resources and issues of the principal

Most small businesses and all legal forms of organizations are eligible such as:
1) Proprietorships
2) Partnerships
3) Corporations
4) LLC’s
5) Independent Franchises

Types of businesses that are ineligible are the following:
1) Businesses involved in real estate or other speculation
2) Financing where money is stock in trade
3) Pyramid or multi-level marketing businesses
4) Floor planning for auto or appliance dealers
5) Gambling or illegal enterprises
6) Religious institutions
7) Firms dealing in material of a prurient sexual nature
8) Any borrower who defaulted on prior Federal loans or Agencies including Student Loans

The SBA is primarily concerned with an applicant’s personal liquidity, resources and net worth. Business owners with large amounts of liquid assets are seen as able to self finance, conventionally finance or contribute to the needs of their business. The primary test for the Agent is whether the desired financing is available from sources other then a government guarantee.

Who are SBA Loans available to?
SBA loan programs are open to US citizens as well as legal resident aliens. All non-citizens must have their immigration status verified by the INS using a G845 with a copy of INS Form 1-155 “green card” attached along with the written permission of the individual for the verification. Each applicant will undergo a detailed Criminal Background check and ones with prior arrests, convictions or current probation/parole or indictment will be reviewed very carefully. Recent or significant criminal history may affect eligibility. Some non-resident aliens are eligible as long as the business is in the U.S. and the owners have foreign investment Visa’s.


Cole D. Harris
iBank Comm/Tech Team
CHarris@ibank.com
(714) 549-4226 ex: 122
3151 Airway, Building G-3
Costa Mesa, CA 92626

Get Loans Without a Financial History - Forbes Small Business mentions iBank.com

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Read this
CNN Money Article titled "Get loans without a financial history"
Looking to grow a home-based baking business, an entrepreneur with no financial business history wonders how to write an investment-worthy business plan.

Which mentions iBank.com!

Chasing a Fad - Monetizing a Trend by Tom Markel at USC Marshall School of Business

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Our CEO recently held a lecture at the University of Southern California Marshall School of Business based on his life experiences on how entrepreneurs can monetize a trend.

I was in this class and can say that it was the most engaging lecture the whole semester.


part 2

part 3

part 4

part 5

part 6

part 7


-Rob Moore

PoorBillionaire: Powerpoint on Social Media

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PoorBillionaire: Powerpoint on Social Media

We presented this powerpoint today and it got good feedback.

Next week we are going to tour each department and see what social media we can implement at the company.

Lenders, agents and investors can now find non purchased leads at iBank.com

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Lenders, agents and investors can now find non purchased leads at iBank.com

iBANK.COM NOW OFFERS BULK LEAD SALES FOR IT'S LOAN, INSURANCE AND CAPITAL CENTER

COSTA MESA, CALIF. (www.iBank.com, Are you looking for good quality leads? Applications that meet your criteria? iBank.com can now process these applications and give you your leads in minutes. iBank’s newly designed search engine technology allows your iBank representative to query the system and process your request on any campaign you desire. We can also run the query for as far back as you like.
“This new service helps not only the lenders, agents or investors who are looking for that lead that no one else has looked at, but it also allows more exposure to the borrower’s loan request,” says Erik Hamilton, Senior Business Development Manager – Lenders.
The bulk lead search is available to all lending, insurance or investor sources that are associated with iBank.com. Once purchased, these leads will no longer be available to any other lending, insurance or investor agents.
“Personal contact and relationship building are vital in business,” said Pete Gray, Business Development Manager. “Our bulk lead system helps people build a customer base of qualified small business owners they can contact directly, and without taking a big bite out the total marketing budget.”



About iBank.com
Based in Costa Mesa, Calif., www.iBank.com, is America’s largest online small business financial network. The network helps small businesses collect and store all of their business information inside a secure online VAULT; and helps create a digital loan, insurance and investment application package. Formed in 1999, www.iBank.com utilizes advanced search engine technology, and numerous other online tools for communication and connecting in real time with a nationwide network of loans, insurance and capital sources for a faster, easier, and lower cost experience.

iBank.com
Kathryn Johnson,
Co-Directors of Communication Technology
(714) 549-4226 ex: 125/127
kjohnson@ibank.com
3151 Airway, Building G-3
Costa Mesa, CA 92626

Small Business Loan, Equipment Leasing and Commercial Loan Portal Leader iBank Now Offers Home Equity/Home Refinance Loans

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Small Business Loan, Equipment Leasing and Commercial Loan Portal Leader iBank Now Offers Home Equity/Home Refinance Loans

COSTA MESA-Calif. iBank, the nation's No. 1 online small business loan, equipment leasing, and commercial lending engine, is excited to announce the addition of home equity loan/home re-finance applications to our lender's network. With many small businesses looking at their homes as equity for loans to fund their businesses, iBank recognizes that our lenders would like to be included in this application process.

Beginning Tuesday, July 26, this application will be available to you. Separate pre-qual questions will be added to the sorting engine and will available to you in your vault.

Please contact us if you are interested in this new addition. Our lending specialists are waiting to answer any questions you may have or help you set up a new campaign.

"Since 1999, iBank has revolutionized the commercial loan market with its unique filtering process. Done through the portals of cyber space, iBank attracts more than 200 applicants a day, 6000 a month, and monthly average of about $7 billion in loan applications. Today, iBank is the benchmark for processing commercial loans."

Business Development Managers
949-955-0040,

Erik Hamilton, Ext. 122
Ron Blake, Ext. 123
Frank Salvemini, Ext. 120

2008 PressKit 08

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Press Kit


About iBank __________________________________________________

Based in Costa Mesa, Calif., iBank is Americas #1 Online Small Business Financing Network. Formed in 2004, iBank.com utilizes powerful internet tools for the small business to
1) Create a lifetime VAULT –for access 24/7/365 to store all necessary information to pre-fill over 180 loan application packages
2) Professional loan application package builder to give the small business a better chance of funding
3) Instant access to a nationwide network of funding sources for loans and leases from $1000 to $50 million.
4) An advanced search engine technology to match the small business to the right lenders website for a faster, easier, and lower cost experience.

iBank’s Mission _______________________________________________

Get Small Business Connected to Credit and Capital

iBank Management ____________________________________________

Thomas Markel Founder and CEO
Ron Hardaway Chief Financial Officer
Brooke Kline Chief Technology Officer
Donna Cahill –Communications Director

Company Background _________________________________________

Headquarters:

iBank.com
3151 Airway Avenue
Building G-3
Costa Mesa, CA 92626
Tel: (877) 999-6465

Year Founded:

2004

Web site:

www.ibank.com

Number of Employees:

30

iBank.com Customers and Partners:

SCORE, Hilton, Sysco, Environmental Protection Agency, Sallie Mae, Heritage Propane, CB Richard Ellis, Superior Financial Group, and over 1,000 more.

Press Contacts _______________________________________________


Tom Markel Donna Cahill
CEO Director of Communication
Email: tmarkel@ibank.com Email: dcahill@ibank.com
Mobile: 949.697.9753 Mobile: 410.916.3657

Online Financing Comes of Age for Franchising

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FU/Fall/Financing Column/Szabo

Online Financing Comes of Age for Franchising

Winning and locating financing online has arrived for the franchise industry. Prospective franchisees can deliver their loan application via the Internet to many different lenders and select the best package without ever leaving their desks. One Irvine, California-based software manufacturer, Oinke, LLC, is helping to make it happen with its FARMS (Financial Application Relationship Management System).
Oinke (named by the founder’s five-year old son for putting time and money in your piggy bank) virtually eliminates the paper, copying, faxing, and overnight mailings usually needed for processing a loan. These efficiencies help to reduce the cost of the lending process by an estimated 40 percent and cut the time it takes to fund a loan by 60 percent, says Thomas Markel, Oinke’s CEO and founder.
“We are committed to making borrowing faster, easier and cost effective for borrowers and lenders alike,” he says. Keep in mind that Oinke is not a lender or a broker, but commercial financing software attached to a nationwide lender network used by both lenders and borrowers.
Growing businesses such as those in the franchise industry are constantly looking for funding. With FARMS, the business loan and plan only has to be prepared once. It is then placed in a secure digital vault and can be used again and accessed anytime.
A sister company Credentrust, Inc., fully automates the processing of franchise applications, credit applications, and tenant lease applications. Its software includes automated credit bureau reports and bank and trade reference reports. Once data is captured from the franchise application, it populates loan applications and can be viewed by over 200 lenders for business loans, equipment leasing and commercial real estate loans ranging from $500 to $500 million.
Not any lender can be a part of the program. Oinke has a stringent process in place to review and approve lenders, and it only selects licenses lenders with proven performance records in its various loan categories.
In the franchise arena, Oinke recently announced that it is partnering with CKE Restaurants’ wholly owned subsidiaries’ Carl Karcher Enterprises, Inc and Hardee’s Food Systems, to provide FARMS to their new and existing franchisees. CKE are the owners and franchisors of Carl’s Jr. and Hardee’s restaurants.
When prospective franchisees visit www.ckr.com/franchise to investigate a Carl’s Jr. or Hardee’s franchise, they find a link to Oinke’s web site. They can then use the resources of Oinke to find the right lender for their particular needs.
Prospective franchisees simply fill out one form and upload all other necessary documents into their secure private vault. The borrower has access to this digital vault 24 hours a day 7 days a week. As a result, they can get proposals from multiple lenders for all types of loans. “It’s really a timesaver and allows them (prospective franchisees) more time to focus on their efforts to secure a franchise territory,” says Craig Hopkins, vice president of franchise sales for Carl’s Jr. and Hardee’s.
Only lenders approved by Oinke who have specified an interest in the borrower’s loan type are able to view the information in a borrower’s vault. In addition, lenders are not permitted to see the contact information of the borrower
This financing service, says Hopkins, “gives franchisees access to over 150 lenders at one time by completing just one loan application. As a result, it makes things happen faster for them.” While Carl’s Jr. and Hardee’s don’t provide financing for prospective franchisees, the Oinke’s collaborative financing tool provides those interested in franchise opportunities with a much-needed service.


Software Does the Work

Using FARMS, qualified parties chosen by the borrower can look into the vault to submit questions and proposals. Keep in mind that the identify of the borrower is hidden. When the borrower chooses the successful lender, only then does the lender receive the borrower’s contact information.
Oinke’s software organizes the loan request information to make it easy for a lender to offer a proposal on a commercial loan. All lenders have the ability to see a question and the answer in a borrower’s vault. This helps speed up the loan proposal process because the borrower doesn’t have to answer the same question multiple times.
In addition, Oinke’s software sorts, manages and runs live interactive transactions specifically designed for commercial business loans. It matches the lenders and borrowers loan type, size, and location and notifies the right institutions electronically.
Lenders can view at their desktop an anonymous loan package and those who are interested can submit proposals on the loan package. The borrower takes a look at the various proposals and then makes a decision on which lender to use.
Oinke also has partnerships with other franchise companies such as Hilton Hotels, Blimpies, Lady of America and Card Smart. In addition to its collaborative finance tool, Oinke’s software allows prospective franchisees to complete the franchise application online as well. Both Lady of America and Card Smart “are using the whole front end of the system for processing the franchise application,” says Markel.
In 2000, Oinke also set up a partnership with Country Inns & Suites By Carlson, an international mid-tier lodging chain with over 235 locations worldwide to offer commercial financing to potential franchisees via the Internet at www.countryins.com
Potential franchisees can access Country Inns & Suites’ online financing center anytime, allowing them to apply for commercial real estate loans, business loans and equipment financing from the Internet. Lenders whose criteria match those of the loan request bid on the franchisee’s financing needs. Oinke’s auction technology drives this bidding process.
Prospective franchisees will find that the web site offers a number of different types of applications that can be conveniently completed online. The whole process is competitive, says Markel, because lenders can view bids from other lenders. As a result, they are likely to submit more competitive bids to obtain a franchisee’s loan. Borrowers have said they like the online service because it helps reverse the normal auction process by placing the franchisee in control, instead of the lender.
Franchisees that need to borrow money are not committed to obtaining a loan until the moment they choose the winning proposal. To close on a loan, the lender and borrower arrange closing procedures directly, without Oinke’s involvement. That is why Oinke does not track how many loans its software has actually helped to finalize.
Even so the company has processed an estimated $3.4 billion in loan applications since it began offering its online service over three years ago. Prospective franchisees using Oinke’s software pay a licensing fee, which ranges from $29.95 to $499.95. There is also a user fee ranging from $100 to $2,000, which franchisees pay to view the various loan proposals offered by lenders.
As a franchisor, you may also want to look into setting up an online financing center for prospective franchisees. For more, contact CEO Markel at 949 743 1839.