$80 Million Per Job – Government Guaranteed Loans

The government, at the end of last month, authorized a $1.2 billion loan guarantee to SunPower – a solar energy company inCalifornia. 

The loan guarantee is expected to create 300 construction jobs over the next 25 years (these will be temporary jobs stretched over a quarter of a century) and an estimated 10 to 15 permanent jobs. 

If we assume that they will actually create the 15 permanent jobs, that is $80 million dollars per job created. 

Forgetting about the politics here, I really do think that we could better as a country.

Here is my concern: 

If we really want to create jobs in this country, and it is traditionally small businesses that create the bulk of the jobs (some 60% of all jobs) – then why not provide that $1.2 billion in loan guarantees to small businesses? 

Think about it.  $100,000 in loan guarantees for 12,000 small businesses ($1.2 billion divided by $100,000 = 12,000 loan guarantees). 

Now, if each of these small businesses created just one (1) permanent job from receiving the guarantee – that would be 12,000 new jobs at a minimum.

Still not a great ratio of jobs per guaranteed money – but a lot better that $80 million for one job. 

Also, if one or two of these businesses fail, it is still OK.  If SunPower fails, that is a big time loss. 

Plus, these small businesses would not only create jobs – probably more than one each – but would also help stimulate their communities – which in turn stimulates other businesses that will create more jobs. 

I’m just saying, if the goal is to use taxpayer’s money to create jobs, there are better ways – put the money in the hands of the actual job creators!

3 Places To Search For A Business Loan

As banks continue to make the news about not providing loans to small businesses, more and more entrepreneurs are looking for new places to find capital – capital to help them grow or sustain their companies.

Banks are not and have never been the only place for business loans.  But, banks do offer some of the lowest rates which can help in the affordability of the payments.  Thus, if your business doesn’t qualify for a bank loan – then, make that your goal.  Find other ways to fund your business until that point that you do qualify.

There are three (3) main places to start your business loan search:

1) Google or Similar Search Engines:
The problem here, with most of the major search engines and similar directories, is that the information is not always the most relevant.  Example, your small manufacturing company is seeking a business loan to expand your operations.  You search for “small business loan” and the first 5 pages of the search results relate to business cash advances. 

While business cash advances may be solid business loan options, they are based on a company’s credit card receipts – something that many small manufacturing don’t have. 

Thus, you waste a lot of time wading through those results.

The reason is that these business cash advance companies are very good at their SEO for key words like business loans – thus they rank high but do your business no good unless that is what you are actually looking for.

2) SBA’s Site (sba.gov):
Great site with a lot of information.  However, they focus more on SBA loans and lenders then other relevant types of loans and lenders.  And, most SBA loans still have to go through your bank – so you are right back in the same situation.  However, the SBA’s site does offer some good resources and advice.

3) Business Money Today’s Free Search Function:
Here, business needs only to select (from drop down menus) a few criteria about their business (no personal information required).  Then, they can compare business financing companies that not only have the types of loan programs your business is seeking but these companies actually want to work with you.  And, you can compare them as apples to apples. 

Many of these financial companies provide a certain type of business loan only and thus have programs to meet almost all businesses needs or stage of development (it is their only business after all).

There are no costs to be listed in this search function or any costs to use it – it is free all the way around.

The only requirement (requirement for those wishing to be listed) is that they are actual funders and not some fly-by-night company looking to make a quick score before moving on.

If your business is in need of a business loan but you are just not sure where to start, check out these options.  You just never know how easy it really can be.

Would You Like A Business Loan With Your Caramel Macchiato?

No, this is not a loan to cover the cost of your coffee.

Starbucks is seeding a new business loan fund with $5 million.  Starbuck’s customers can also donate to the program.

Starbucks, through this new business loan program called “Create Jobs For USA”, in conjunction with the Opportunity Finance Network® (OFN);

“will provide loans to underserved community businesses.”

In fact, Starbucks thinks that for every $5 in donations, the fund will leverage some 700% or $35 of financial support to these businesses.

According to CEO Howard Schultz, “We’ve got to thaw the channels of credit so that community businesses can start hiring again.”

So, if you are also looking to help your local community grow new businesses and you are a customer of Starbucks, then by all means donate as your $5 donation could really make an impact.

Or, if you are a small business in an underserved community and have no hope of securing a business loan from your local bank, this program may just be right for you.

Personally, it is nice to see Starbucks giving back a little given the price for a cup of coffee.

We at Business Money Today wish them much success in this endeavor as all small businesses can use any and all help these days – starts November 1^st.

For More About This Program, Please Visit The Create Jobs For USA Site.

Can You Get A Business Loan With Bad Credit?

The answer is yes! 

There are many ways to get a business loan with bad credit.  In fact, there are business loans based solely on the performance of your business. 

And, isn’t that what you want – a loan based on your business and not on you (the business owner)? 

Some new lenders have figured out that there are missed opportunities in the small business market – strong companies that have business owners with bad credit – and thus have created new business loan products just for them. 

One in particular is a Bank Statement Loan.  If your business continually deposits cash into your bank account, you can factor that performance for a business loan. 

These new lenders will look at your past 6 months bank statements and lend to you based on your average bank balances.  No credit score required. 

Thus, if your business is still generating revenue and needs a business loan but doesn’t want it based on the owner’s credit – these new loans may be worth a look.

Read more about these bad credit business loans.