One of the biggest economic disasters in the United States history is the massive BP (Beyond Petroleum, also known as British Petroleum) oil spill in the Gulf of Mexico. Although everyone was worried at first about the immediate sea life and water pollution repercussions, it soon became apparent that the spill could not be contained and businesses everywhere could and would be affected by the outcome. Close to a month after the spill occurred, the oil started to hit the state beaches along the gulf coast. Even though key efforts to stop the oil spread started to occur, solo Entrepreneurs and small businesses soon realized that their bottom line was going to be majorly affected.
Once it was apparent that fishermen, tourist centers, and small family businesses & restaurants were going to take a critical hit in their wallets, public outcry came about and people directly affected by the spill wondered where to turn. Thankfully, BP set up several claims centers in order for directly targeted people to be able to supplement their lost income with BP claims. However, indirectly affected small businesses like Inns and beachfront restaurants cannot easily get claims because it is not apparent how exactly their income will be affected. Many small businesses realized that they would need loans in order to get through the rough times lurking ahead. However, to get a loan, many businesses quickly realized that now was a good time to have good business credit since lenders want to see that in order to issue loans with enough capital to help.
For the small businesses that already had a good track record with their financials and a good credit score, they found that loans were not easy to get, but they were attainable if they went about getting the loan the right way. This included showing the bank or lending institution their good credit score, getting together proper financials for the last three years, and creating a detailed business plan which would show the lender how the loan would realistically be paid off. For other small businesses, they found that getting a loan was and is hard to do without a good credit score and poor prior financial statements. For small businesses still in this position, don’t panic! The Small Business Administration (SBA) is a government-funded agency created to help small business owners facing an uncertain future. If you work hard to create a thorough business plan and check off the requirements from the SBA.gov website, your small business can get an SBA backed loan. So do not give up!
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