Wednesday, August 11, 2010

SBA loans are not so available any more

SBA loans
In some regions of our country SBA loans with instant approval are not provided any more for help. Originally cash advance loans have been created to help people in difficult financial situations, in particular those home owners and business owners who suffered from emergencies. These offers have 4 – 6 % f interest rate and are offered to help recover from floods, Golf oil split and fires.

The purpose of easy loans with instant approval

Being used in everyday life SBA emergency loans are designed to promote creation and development of small business. These loans are actually guaranteed. These loans are not offered online but in cooperation with banks. They include disaster loans granted to businesses and individuals who have suffered from natural disasters. As all other types of loans SBA loans also consider the customer’s ability to repay. The main advantage of these loans is that they are given to the individuals having bad credit history and difficulties to access other payday loans with instant approval.

Rates for SBA emergency loans

These loans are usually offered soon after some emergency or natural disaster takes place. For instance, in Massachusetts it has been announced that the loans up to $ 200.000 are available for individuals suffered from flood. The same loans up to $ 2 millions are available for businesses with 2% interest rate. At the same time in Louisiana about 70% of loan applications have been denied until BP pays out compensation for the damage. The same situation is in Tennessee – about 66% of flood loan applications have not been approved.

Appeal procedure

Such a situation terrifies potential customers who need a loan, as they have no opportunity to get money to recover. SBA emergency loans have been created to help but they are just unable to help when most people have no access to the loans. This program has, however, appeal procedure which provides opportunity to give additional information, show evidences of suffering from emergency as well as proofs that individuals can repay installment loan. Unfortunately now to get money to recover from natural disaster businesses and individuals will have to pass rather a long procedure.

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