I'M looking for business start-up funding for a wellness spa. It is a new emerging trend fusing aesthetics & whole body wellness. I wud prefer a business grant, equity business loan, or alternative lending solutions. Our focus is medically supervised weight loss, lifestyle coaching, fitness, & cutting edge noninvsive body contouring, & anti aging therapies.
The Military Reservist Economic Injury Disaster Loan program (MREIDL) provides funds to help an eligible small business meet ordinary and necessary operating expenses that it could have met, but is unable to meet, because an essential employee was called-up to active duty in their role as a military reservist.
EligibilityBusinesses with the financial capacity to fund their own recovery are not eligible for MREIDL assistance. Federal law requires SBA to determine whether a business has credit available elsewhere—that is, if credit in an amount needed to accomplish full recovery is available from non-government sources without creating an undue financial hardship. Generally, SBA determines that over 90 percent of loan applicants do not have sufficient financial resources to recover without the assistance of the Federal government.
Use of LoanThese loans are intended only to provide the amount of working capital needed by a small business to pay its necessary obligations as they mature until operations return to normal after the essential employee is released from active military duty. The purpose of these loans is not to cover lost income or lost profits. MREIDL funds cannot be used to take the place of regular commercial debt, to refinance long-term debt, or to expand the business.
Filing PeriodThe filing period for MREIDL assistance begins on the date the essential employee receives a notice of expected call-up and ends one year after the essential employee is discharged or released from active duty.
Credit and Collateral RequirementsSBA must have a reasonable assurance that a MREIDL can and will be repaid.
Collateral is required for all MREIDLs over $50,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but will require the borrower to pledge collateral that is available.
Interest RateThe interest rate is 4 percent.
Loan TermThe law authorizes loan terms up to a maximum of 30 years. SBA determines the term of each loan in accordance with the borrower's ability to repay. Based on the financial circumstances of each borrower, SBA determines an appropriate installment payment amount, which in turn determines the actual term.
Loan Amount LimitThe maximum loan amount is $2 million. The amount of each loan is limited to the actual economic injury as calculated by SBA, not compensated by business interruption insurance or otherwise, and beyond the ability of the business and/or its owners to provide. If a business is a major source of employment, SBA has authority to waive the $2 million statutory limit.
Insurance RequirementSBA requires borrowers to obtain and maintain appropriate insurance. Borrowers of all secured loans over $50,000 must purchase and maintain hazard insurance for the life of the loan on the collateral property. Borrowers whose collateral property is located in a special flood hazard area must also purchase and maintain flood insurance for the full insurable value of the property for the life of the loan.
Any business or private, nonprofit organization that is located in a declared disaster area and has incurred damage during the disaster may apply for a loan to help replace damaged property or restore it to the condition it was in before the disaster. If your business or private, nonprofit organization - large or small - has suffered physical damage as a result of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration. SBA makes physical disaster loans of up to $2 million to qualified businesses or private, nonprofit organizations.
Proper Use of Physical Disaster Loan Proceeds
Physical Disaster Loan proceeds may be used for the repair or replacement of the following:
•Real property
•Machinery
•Equipment
•Fixtures
•Inventory
•Leasehold improvements
In addition, disaster loans to repair or replace real property or leasehold improvements may be increased by as much as 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements as verified by SBA to protect the damaged real property against possible future disasters of the same type.
SBA loans cover uninsured and under-insured physical damage. If you are required to apply insurance proceeds to an outstanding mortgage on the damaged property, you can include that amount in your disaster loan application.
Interest Rates on Physical Disaster Loans
The interest rate is determined by your ability to obtain credit elsewhere (from non-federal sources).
The interest rate on both these loans will not exceed 4 percent if you do not have credit available elsewhere. Repayment can be up to 30 years, depending on the business’s ability to repay the loan. For businesses and nonprofit organizations with credit available elsewhere, the interest rate will not exceed 8 percent. SBA determines whether the applicant has credit available elsewhere.
Application Information
Businesses may apply directly to the SBA for possible assistance. SBA will send an inspector to estimate the cost of your damage once you have completed and returned your loan application.
SBA now offers you the option of filing your business disaster loan application electronically. Downloadable application forms are available at: Apply for Assistance.
For additional information, please contact our Customer Service Center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov
If you’re planning to start a business or expand an existing business, you might need financing help. SBA participates in a number of loan programs designed for business owners who may have trouble qualifying for a traditional bank loan.
To start the process, you should visit a local bank or lending institution that participates in SBA programs. SBA loan applications are structured to meet SBA requirements, so that the loan is eligible for an SBA guarantee. This guarantee represents the portion of the loan that SBA will repay to the lender if you default on your loan payments.•Basic 7(a) Loan Program
Provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.
•Certified Development Company (CDC) 504 Loan Program
Offers very small loans to start-up, newly established or growing small business concerns. SBA makes funds available to nonprofit community based lenders which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.
•Microloan Program
Disaster LoansProvide financial assistance to victims of disasters or to individuals in a declared disaster area. You may be eligible for this type of loan even if you don't own a business.
•Disaster Assistance Loans
Assist small businesses, small agricultural cooperatives and nonprofit organizations as they recover from economic losses resulting from physical disaster or an agricultural production disaster.
•Economic Injury Loans
Export Assistance LoansProvide exporters and lenders with a streamlined method of obtaining financing for loans and lines of credit up to $250,000. Lenders use their own credit decision process and loan documentation; exporters get access to their funds faster. SBA provides an expedited eligibility review with a response in less than 24 hours.
•Export Express
Offers loans targeted at businesses that are able to generate export sales but need additional working capital to support these opportunities.
•Export Working Capital
Gives term loans that are designed for businesses that plan to start/continue exporting or those that that have been adversely affected by competition from imports. The proceeds of the loan must enable the borrower to be in a better position to compete.
•International Trade Loans
Veteran and Military Community LoansProvides financial assistance for veterans and members of the military community who want to establish or expand small businesses.
•Patriot Express Pilot Loan Initiative
Offers funds to eligible small businesses to meet ordinary and necessary operating expenses that could have been met, but are unable to meet, because an essential employee was "called-up" to active duty in their role as a military reservist.
•Military Reservist Economic Injury Disaster Loan
Special Purpose LoansHelp small businesses meet their short-term and cyclical working-capital needs through the SBA umbrella program called CAPLines.
•CAPLines
Provides financing to eligible small businesses for the planning, design or installation of a pollution control facility.
•Pollution Control Loans
CAIP is a program established to assist U.S. companies that are doing business in areas of the country that have been negatively affected by the North American Free Trade Agreement (NAFTA). To be eligible, a business must reside in a county noted as being negatively affected by NAFTA, based on job losses and the unemployment rate of the county.
www.sba.gov
I am a first time business owner and I have found it very difficult to aquire start up capital for my business. All I need is a launch pad and the sky's the limit. I have plenty of origninal designs and a decent fanbase of people who are interested in my products, as well as my artwork, in our region. The problem is getting things started on a larger scale. With only $3000.00, I could get the website designed and set up, a nice inventory, marketing funds and a larger screenprinting machine.. I've already spoke with 3 national magazines who were excited about my products and would love to see my ads in their mags, but I have to save up in order to place them. Your help would be greatly appreciated and gladly reciprocated in due time.
