Small Business Jobs Act Offers Loan Assistance to Real Estate Agents

Small Business Association Loan Options

Would you like to reduce your monthly costs and have a financial “cushion” to assist you in covering expenses over the winter?

The real estate industry has experienced challenging times over the last four years. Brokers and agents can benefit from financial assistance to help them through this difficult market. The Small Business Administration may be a viable source for obtaining a loan or refinancing existing debt. Brokers and agents are eligible for SBA guaranteed financial assistance and often qualify for various loan packages.

New Legislation Extends Benefits to Small Businesses

The Small Business Jobs Act was signed into law by President Obama on September 27. 2010. This business legislation provides critical resources to small businesses which includes an extension of SBA loan provisions through December 31. Since real estate agents qualify as a small business they can benefit from the 90% guarantee and reduced loan costs.

7 (a) Loan Program

The 7(a) Loan Program is SBA’s primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels. These loans are the most basic and most commonly used type of loans. They are also the most flexible, since financing can be guaranteed for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets. (The Jobs Act extends some of these options.)

Refinance Business Debt with SBA

Refinancing short term debt (including credit card debt) is similar to using working capital to pay off accounts payable. Qualifying credit card debt must be for business purposes and your lender will ask you for documentation to verify the usage. The additional benefits of refinancing this debt are lower interest rates and the tax deduction.

Contact your local SBA lender to determine if you qualify for a loan. The 90% guarantee and reduced closing costs expires on December 31, 2010.