Exit Coach Bill Black interviews Top Advisors for Tips, Ideas & Precautions for Business Owners who want to grow and protect their company value and plan for a successful Business Sale or Transfer. Listen daily so you can be well-planned!
Episodes
Thursday Mar 13, 2014
Thursday Mar 13, 2014
When
entrepreneurs seek working capital or equipment loans and lines of credit from
banks, personal guarantees are regularly required to ensure that the business
owner has “skin in the game” and to mitigate risk. However the Great Recession
crushed the
personal net worth of many entrepreneurs; equity in real estate
vanished, liquidity was pumped into the business to keep it going – to the point
where the personal net worth of the guarantor did not add to the credit quality
of the business.
To satisfy regulatory requirements of primary AND secondary sources of repayments, it now makes sense more than ever to check out government guaranteed lending programs. Most are familiar with the SBA programs for working capital lending. But many may not be aware of two California State Guarantee programs available through community banks in your area. The State Guarantee Programs provide Banks with an 80% guarantee, do not require extensive paperwork and have less fees than SBA loans – a great alternative for business owners with growth in mind.
First Vice President
Relationship Manager