BY KAREN GERHARDINGER | MIRROR REPORTER — For an entrepreneur eager to launch a new business or grow an existing one, the SBA loan – guaranteed by the U.S. Small Business Administration and issued by lenders – could the answer.
Rob Haskins, VP and specialty finance consultant at JPMorgan Chase Bank, spoke about SBA loans during the Waterville Economic Development Corporation (WEDC) fall meeting on September 27.
Started in 1953 as a direct loan from the government, the SBA loan is now handled by financial institutions. In the year ending September 30, 2017, over 62,000 SBA loans were approved, totaling $25.4 billion.
For lenders, the SBA takes away some of the risk, as the government guarantees up to 75 percent of the loan in the event of a default.
“The SBA loans help banks say yes more often,” Haskins said. Lenders can also approve applicants who don’t meet conventional underwriting standards.
For those seeking a loan, approach it like a job interview, he said.
“Have a good business plan. Keep it short and explain it,” he said, suggesting that the plan include best-case, worst-case and average scenarios.
The WEDC partners with area businesses, the city of Waterville, the Waterville Chamber of Commerce and regional economic development organizations to facilitate sustainable business growth.
For more information, visit www.watervilleedc.org.