604. The Government is Paying You to Take Out A Loan

Tersh and Josh welcome Joshua Kim of 7a Accelerator, to discuss why the government is paying YOU to take out a loan and how you can get in on these programs!

Here is a little information about Josh:

Joshua Kim is the founder and CEO of 7a Accelerator, a company that provides consultations, resources, and concierge-style assistance for business owners on capital solutions and securing the right SBA lender. By leveraging $2.5M+ in SBA 7(a) financing, he purchased his first businesses at 19 and 20 years old. A transactional entrepreneur, he is an expert in M&A and government-guaranteed financial instruments.

On today's episode, Tersh & Josh talk with Josh about how to leverage the government programs to get working capital for your business within the next 30 days!

Our Deep Dive~

1. • Not all banks  are created equal. Make sure you work with a qualified SBA lender who has actually CLOSED and FUNDED loans for companies like yours. Ask bankers hard questions, YOU are the customer, YOU are in the drivers seat, not them. 
   • You don't need perfect credit. (We have a referral if you need a little bit of cleanup...)
   • You don't need a ton of personal collateral. I bought my first business with an SBA loan at 19 and had no more than $20k to my name for securing a $1.2M loan.
   • You don't have to have been in business for 2+ years to get a loan, you can use it to scale/supplement growth on newer companies as well. 
   • SBA loans don't require as much paperwork as you would think and approval process and timing can be less than 30-45 days if you work with the right lenders. (See point #1!)
   • SBA loans are for more than just buying a building   , you can also buy your first or buy another home service business with one, or buy out a partner. General growth and working capital are also common and eligible uses, as well as refinancing of over more expensive debt. 
   • SBA financing can help larger companies too. Even if you have $10-15M a year in revenue, SBA financing is likely going to be a much easier route than traditional bank financing.
    
   Right now the SBA has some active incentives that are ONLY good for new loans closed over the next 80-90 days:
   1. 90% Guaranty vs 75%. This means the bank has less risk on giving an SBA loan and is more willing to lend on an aggressive deal.
   2. 3 months of free payments up to $9,000/mo. That's right - the first 3 months of your loan be paid for by the SBA, if you close before October 1st.
   3. Guarantee Fee Waiver. The way the SBA doesn't lose money every year on the loans they guarantee through partner banks is by a small insurance premium of sorts charged on every loan varying between 3.5-3.75%.

RESOURCES

• Learn more by visiting

- https://7accelerator.com/servicebusinessmastery- 

- https://www.linkedin.com/in/joshuaekim/

• Learn more about how Tersh trains his Service Technicians by using Virtual Reality by clicking here 
• Learn more about Tersh by visiting https://serviceemperor.com 
• Connect with Tersh on social media @tershblissett 
• Connect with Josh on Facebook @https://www.facebook.com/josh.e.crouch/
• Learn more about Relentless Digital @https://www.relentless-digital.org/
• Have you ever wondered HOW to target your perfect client?!? It's EMOTION...EMOTION is what sells, visit https://admanity.com/SBM/ to get this free share that I (Tersh) stand behind 100%!

"If you know how people will emotionally react, you have an advantage more valuable than all of humanity's innovations."

Thank you for listening to another episode of the Service Business Mastery Podcast!