Business and Real Estate in Oakland

There are many sources of financing: banks, savings and loans, commercial finance companies, and the SBA are the most common.

State and local governments have developed many programs in recent years to encourage the growth of small businesses in recognition of the positive effects to the economy. Family, friends and former associates are all potential sources, especially when capital requirements are small.

Traditionally, banks have been the largest source of financing. Its main role has been short-term loans by providing loans, lines of credit for seasons and special purpose loans for machinery and equipment. Banks generally have been reluctant to offer long-term loans to small businesses.

The SBA guaranteed loan programs and encourages bankers and lenders are not banks lending to small businesses long term and multiplying the risk by reducing the funds they have available. SBA’s programs have been an integral part of the success stories of thousands of businesses nationwide.

In addition to the equity considerations, lenders usually require the borrower’s personal guarantees in case of non receipt of payments. This ensures that the borrower has sufficient personal interest to give maximum attention to the business. For most borrowers this is a burden, but also necessary.

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