Small businesses learned how new policies may affect their ability to borrow money at a presentation by Arnold D. Spevack, and Alison W. Rind principals in the Commercial Lending practice group. Mr. Spevack and Ms. Rind joined Scott Ritter of Chevy Chase Bank in a presentation to the Montgomery County Chamber of Commerce Small Business Committee meeting. They spoke about the Obama administration policy efforts to loosen credit and help small businesses. Small business loans are down 54% in 2009 and Congress has stepped in to try and make funds more readily available. The presenters gave committee members information on changes to the SBA loan programs and insight into how to secure a small business loan. Mr. Spevack and Ms. Rind told attendees that in order to secure a loan you must be sure that all organizational documents are filed, and all taxes and fees are paid. “The last thing you want is to be sitting down at the eleventh hour and find out that you haven’t filed all the necessary paperwork,” said Mr. Spevack.
Mr. Ritter encouraged small business start-ups to visit the SBA website, which is an excellent resource for businesses, especially those just starting to work on a business plan. Ritter added, “The majority of businesses don’t make it because they are undercapitalized. Good ideas aren’t enough; you need a good business plan to succeed.”The SBA does not fund loans directly−they act as guarantor. “Banks are the lenders and will require collateral and likely even a person guarantee,” stated Ritter. “Why should they stand behind the loan if you won’t?”
All the speakers agreed that in order to make the process go quickly and smoothly, it is important to work with a banker and attorney who are familiar with SBA loan packages. “Don’t let them ‘go to school’ on your loan,” added Ritter.
