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Small Business Administration Grants & Loans

Discussion in 'Business Operations' started by lujanolawn, Jan 28, 2010.

  1. Roger

    Roger LawnSite Fanatic
    Messages: 5,943

    As I understand, the money for any small business loans would come through the TARP money being repaid from the banking industry. For me, the obvious first issue is using these repaid money as a government slush fund. Rather than pay back the debt incurred when the TARP money was loaned, the WH has decided to have the money stop burning a hole in the government's pocket, rather give it out to others. But, I digress. Let's assume the TARP repayment monies are made available to the banks.

    As somebody says, the SBA really doesn't loan the money, rather banks actually loan the money. In this case, the source of the money is intended to come from repaid TARP.

    The first part of the sequence is that the banks accept the money to be loaned out to small businesses. From my reading of many stories this past few days, as well as pundits, this first step is never going to happen in any significant way. This means all the remaining steps for somebody to buy equipment are moot. There is no need to go that far with the discussion.

    The stopper is getting the money to the banks. The problem is the banks do not want to deal with the money from the TARP because it will come with far too many strings attached. The initial TARP was given to some banks that really needed it. In other cases, banks were forced to take the money, over their own objections. As banks gained balance sheets, they wanted to get the TARP money off their books ASAP, to get out from under the Feds wing.

    The banks intended for these procedures under the new plan for small business lending, are saying the same thing, "... thanks, but we don't want that money with all the provisions that come along with the cash." Rather than accept the money, and lend it out to small business owners, the banks so far are saying, "no," to such a plan.

    In other words, the speech on Wednesday night, and again Thursday, was paramount to political rhetoric. In reality, it isn't going to happen. Sure, it made for great press, but, actually, most likely very little money will flow down for small business lending. Not to politicize the issue, but the proposal was a facade without any backing or substance.

    What I'm saying, the likelihood of getting any added funds under a lending program from the Feds, funds for buying new mowers, is small to nothing, IMO.

    As for grants directed to lawn mowing, ... well, not so much. There may be a shot if you are making "green" products, but after "green," I'm doubting any money. Lawn mowing would be at, or near the bottom of the heap on priorities.
  2. glaciator

    glaciator LawnSite Member
    Messages: 66

    I agree with Roger about the "green" loans. If you are a landscaper and can come up with a plan to bring to market a "green" product or innovative "green" service, then you might have a small chance. It would be better if you were making wind turbines, though.
  3. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Something that seems to escape most people's minds before taking out a loan...
    What if you can't make the payments?

    Stiffing a bank is bad enough but you won't get out from stiffing the government,
    even if it seems like people do it everyday but them folks will attack your taxes for
    the rest of your natural life and then they might go after the survivors and that's
    if they're taking it easy on you.

    You'll be lucky to see social security if that loan ain't paid off, but the most unfortunate
    part about all of that is it very much assumes you can even get the loan ...

    Now we're talking.

    Much as I thought the speech was better than that but I would have to agree
    that landscapers won't be seeing much of any of that supposed grant money.
    Last edited: Feb 1, 2010
  4. zimmatic

    zimmatic LawnSite Senior Member
    Messages: 416

    I just called my local sba branch in Minneapolis/stpaul. ----Worthless. I directly asked if there were any loans or grants availble to expand my business. I want to hire a full time employee. He said we dont loan money(I knew that) and that I should contact my local bank and go through thier underwriting process and if they want some added guarntees then you could request an sba loan. So basicly if you cant get a loan from a bank then sba wont give you one either. Now do I need a loan---NO I dont but I wanted to call to see what the process would be like. I wonder how all these "disadvantaged" people get loans from the SBA/banks.
  5. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    In my experience with SBA....you have to be a well off company with TONS of collateral, a professionally done up business plan 50 pages long, be a minority woman, with one leg, fingers missing, and barley able to speak English to get anywhere.
  6. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    There was an article in a Turf Magazine a couple months ago about a woman who was granted grants, but again a woman who was doing non-profit work.
  7. Maple Wood

    Maple Wood LawnSite Senior Member
    Messages: 322

    In the business I had a couple years ago I tried to get an SBA loan.
    After a very long time and enough paper work to eliminate a small forest I gave up.

    I found out that SBA stands for Small Business Assassination
    The only business they would loan money too was one that did not really need it.

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