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Keep in mind, a small business loan of any sort, or a large business loan of any sort requires some sense of, all right, what's the business plan, what are your projected earnings, et cetera, et cetera.
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The apocalyptic tax consequence of being a passive investor in small business loans stops virtually all foreign investors from participating directly in the U.S. small business loan market while driving their investment dollars into the corporate bond market.
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For business owners looking to secure a 7(a) loan, the most popular of the SBA lending programs, all the owners of a business who hold an ownership stake of 20% or more are required to personally guarantee the loan.
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The law also added service-disabled vets to the list of groups eligible for fully guaranteed loans under the government's 7A small-business loan program and created a government-wide goal that 3% of all federal contracts must go to small businesses owned by service-disabled veterans.
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He was given a loan and a business plan, and today his company is still growing, with offices all over the Midwest.
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