Why do I need a business plan?Because you can apply for a government-funded loan (SBA loan) instead of a conventionalloan. The interest rate for a government-funded loan is the current prime rate plus 1.75 to6.5 points depending on your credit history and the loan can be granted for up to fifteenyears. The interest rate for a conventional loan is up to 4% higher than for an SBA loan andthe length of a conventional loan is on average only up to five years. Even if your credithistory is not perfect, you have a much better ...
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Why do I need a business plan?Because you can apply for a government-funded loan (SBA loan) instead of a conventionalloan. The interest rate for a government-funded loan is the current prime rate plus 1.75 to6.5 points depending on your credit history and the loan can be granted for up to fifteenyears. The interest rate for a conventional loan is up to 4% higher than for an SBA loan andthe length of a conventional loan is on average only up to five years. Even if your credithistory is not perfect, you have a much better chance to get approved for an SBA loan thanfor a conventional loan. Your chances of approval will also increase if you are a member of aminority group such African American, Native American, Hispanic American, an AsianAmerican, or if you plan to start or expand a woman-owned-business.
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