SMALL BUSINESS LOANS

What is the Small Business Administration and what is a SBA Loan?

Established in 1953, the Small Business Administration (SBA) is a division of the U.S. Department of Commerce, created to help individuals operate small businesses in the U.S. One of the ways this agency helps small business owners is with financing through SBA loans. Specifically, the Small Business Administration guarantees loans to qualifying businesses that do not currently meet their bank's lending criteria. If you can't get a business loan from other sources, the SBA might be a good option.

Here's how it works. The SBA guarantees loans from commercial banks that provide the capital for the business loan. This way, the financial institution, such as The JPMorganChase Bank, will lessen the risk taken in extending the credit. Chase provides Small Business Administration (SBA) loans. Chase is also a SBA preferred lender, which means we can process your loan application faster. Chase has helped many businesses get the financing they need, even when other financial institutions have turned them down.

As you hire employees, it's important to keep in mind that federal law prohibits you from discriminating against potential candidates based on their race, color, nationality, age, sex, religion, handicap, etc. You'll want to familiarize yourself with federal laws such as The Age Discrimination in Employment Act of 1967, The Americans with Disabilities Act, The Civil Rights Act of 1964, The Pregnancy Discrimination Act of 1978, The Equal Pay Act, and The Family and Medical Leave Act. You may also be subject to other state and local laws concerning workers' compensation or disability claims, and arrest and conviction records. Consult with your attorney regarding any concerns you have about employment law legal issues.

Essentially, cash flow is the money that comes into and goes out of your business. Here's an example. Let's say a used car dealer bought a car for $5,000, then sold it for $8,000. While the car dealer makes a profit of $3,000, he has a positive cash flow of $8,000 because that's how much more he has in the bank now that he's sold the car. If the dealer then bought another car for $5,000, he has a net positive cash flow of $3,000, which is the same as his profit. The kinds of things that impact your cash flow include inventory management, credit, capital expenditure financing, etc

Typically, small businesses use one of the following types of retirement plans: Money Purchase Plan - contribute up to 25% of annual compensation for you and your employees. Employer contributions are mandatory, regardless of profits.

Profit Sharing Plan - contribute up to 15% of annual compensation for you and your employees. You can vary the rate of contribution based on your profits.

401(k) Plan - contributions made through salary deduction, either pre-tax or after tax. Employees can choose the percentage of their salary to defer up to IRS dollar limits and/or your own plan limits. You can make deductible contributions on behalf of your employees. Together, employee and employer contributions cannot exceed the lesser of 25% of annual compensation or $30,000.

Simplified Employee Pension Plan (SEP) - you make contributions to each employee's account, up to the lesser of 15% of annual compensation or $24,000. This is the simplest plan to establish and administer