Application for Business Funding
If there's broad agreement that small businesses are matchmakinh engine that powers the American economy, shouldn't it be easier to fuel the tank? Access to credit continues to bedevil too many U. Eighty percent of small business loan applications are rejected, according to some industry estimates, and more applications than we can count are never filed because of the difficulty of getting an appointment with a loan officer.
There's a hunger among entrepreneurs to find financing to get their business off the ground or take the next big step in their expansion plan. Across the country, thousands of small business owners pound the pavement every day looking for term loans, equipment financing, lines of credit, invoice financing, and real estate loans to help them hire and grow. But too often, they're wasting time they don't have cold-calling and door-knocking their way to a lucky break. It shouldn't be this way.
If you have a bankable business idea backed by good credit and business loan matchmaking financial planning, you shouldn't have to go begging to borrow. Technology can help us address this problem. Online matchmaking services pairing businesss with prospective borrowers comprise a multibillion-dollar industry. Perhaps you've seen the Lon commercial in which a creditworthy home businness goes online and is delighted to find banks competing to finance her house.
Small businesses lending is the next frontier for these matchmaking matchmakung. Using the power of the Internet, commercial lenders are finding creditworthy small business borrowers, while entrepreneurs are finding loan officers who are ready to sit matchkaking and talk. The SBA not only supports this concept; we're implementing matcchmaking.
Today, at the National Press Club, I announced a new SBA initiative called LINC Leveraging Information and Networks to access Capital. Our matchmaking service will help entrepreneurs get a date with a lender. We spent months surveying our lending partners to discern what information they need before they're ready to receive a loan pitch. Based on those talks, we've developed a simple online business loan matchmaking with 20 questions that matchmakijg minutes to fill out.
Once completed, the form is blasted out to participating SBA lenders in an applicant's county, as well financial institutions with a statewide or national reach. While a positive "hit" won't ensure entrepreneurs will receive a loan, it will matchmkaing them on a fast track, because they will have been pre-screened. If LINC doesn't produce an immediate match, entrepreneurs mattchmaking be directed to their local SBA adviser lloan additional assistance with their loan application.
To me, this is what good government is all about: LINC is expanding small business lending options beyond someone's local bank. Instead, technology can help them get their foot in the door on their merits at one of many commercial lenders. The SBA is virtualizing what happens every day when a borrower walks into a bank to transact business, and we're facilitating business loan matchmaking connections for free.
To my knowledge, this is the first time the federal government has implemented online matchmaking to help Americans access the capital they need. It's part of SBA's commitment to modernize to be as innovative as businews small businesses we serve. We're rolling out LINC in two phases. Starting today, we will begin connecting small business owners with nonprofit lenders that offer free financial advice and specialize in microlending, smaller loans our Community Advantage programand real estate financing our program.
Phase 1 is off to business loan matchmaking strong start. We already have participating LINC lenders in all 50 states, the Business loan matchmaking of Columbia and Puerto Rico. Later this year, in phase 2, we plan to add more traditional banks that offer an even wider array of financial products. In the longer term, we also believe Busibess could be modified to facilitate government contracting by connecting eligible small businesses with procurement officers, prime contractors, and federal buyers.
The future is upon us, and the SBA is proud to be leading the way. NEWS Highline Science Education Weird News Business TestKitchen Tech College Media. POLITICS Pollster Heroin Epidemic Donald Trump Racial Inequality US Senate Election Results HuffPost Hill Police Brutality Hate Crimes Lucy mecklenburgh dating history Court Congress So That Happened.
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SBA Launches Online Matchmaking for Small Business Loans. By Administrator Maria Contreras-Sweet.