Unlike the capital shortage in 2008, the current economic crisis has not severely limited commercial lending options for strong borrowers. Private funding and lending will be more expensive than government-backed lending and public assistance programs, but many of those programs are low on funds and have significant restrictions on the use of proceeds.
There are many private funding and lending options available to small businesses, including bridge loans, revolving lines of credit, real estate backed lending, and other more creative options, such as equity investment and hard money lending. The availability and terms of private lending to small businesses are largely dependent on the strength of the owners’ personal guarantee, historical cashflows, or the size of the collateral offered.
If your business has an existing banking relationship, speak to a loan officer at your bank to investigate private lending options further. If your business does not have an existing banking relationship, you may want to reach out to a local lender who is also an authorized Small Business Administration (SBA) Lender.
To see a list of authorized SBA Lenders in Southeastern Pennsylvania, check out this section of the Eastern Pennsylvania SBA District Office 2020 Resource Guide.
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