Finance: College Savings Plans

College Savings Plans

Written by Vanessa McHooley

College Savings Plans So you have just carried your newborn into repparttar

house for

first time, placed him or her down into repparttar 111731

freshly-purchased crib that you just obtained, and watched him or her drift into their first sleep under your roof. Now it’s time to head downstairs by repparttar 111732

fire, cuddle up with your spouse, and start discussing college plans for this new little tyke. Wait, college plans? That’s right. It is never too early to start planning repparttar 111733

future out for your child, especially with repparttar 111734

way that college tuition is elevating to new heights with every passing year. Before you start planning though, it is important to know your options as new parents to a potential college student (even if he or she is just a few days old!).

Start A College Savings Plan Through Your Bank Your first option when learning about college savings plans for your child may be to contact your local bank and discuss repparttar 111735 possibilities of opening up a special college savers’ fund for your child. Not all banks have them readily available for customers, but check with yours to see if this is an option. If not, you will then have to contact specific companies that deal with college savings plans, such as repparttar 111736 Section 529 state college savings plans. Such a plan enables you, as new parents, to start stashing money away now, so that junior can attend your state college once he or she is of age to do so.

SBA Loans: Options, Benefits, and Lenders Part 2 of 2

Written by Cameron Brown

Untitled Document

SBA Loans: Options, Benefits, and Lenders Part 2 of 2

In this second installment, we will further examine what kinds of SBA loan options are available, and for what kinds of businesses they are most advantageous. We will also discuss repparttar different types of SBA lenders.

There are several different lending programs for those who qualify for an SBA loan. However, it should be noted that not every SBA approved lender offers every loan option; some lenders may be flexible than others.

A loan programs are generally intended to encourage long term small business financing, however, actual loan maturities are based on several different factors; 1) repparttar 111729 ability to repay, 2) repparttar 111730 purpose of repparttar 111731 loan proceeds, and 3) repparttar 111732 useful life of repparttar 111733 assets financed. However, maximum loan maturities have been established: twenty-five years for real estate and equipment and seven years for working capital.

Basic 7(a) loan Guaranty: The 7(a) is an SBA guaranteed loan provided through SBA certified commercial lending institutions. The maximum loan amount for a 7(a) is $2 million, with repparttar 111734 SBA guaranteeing up to 75% or $1.5 million.

Interest rates for 7(a) SBA loans are usually negotiated between repparttar 111735 borrower and repparttar 111736 lending institution. However, repparttar 111737 SBA itself has set maximum interest rates depending on repparttar 111738 loan amount, repparttar 111739 highest rate being 4.75 percent on a loan of $25,000 or less with a maturity of seven years or more.

Because of it's flexibility, repparttar 111740 7(a) is ideally suited for start-up or small growing businesses who are denied financing through other sources. The loan funds can also be used for a wide variety of purposes: renovation, real estate, equipment, payment of prior debts, etc.

Certified Development Company (CDC), a 504 Loan Program: The 504 SBA loan is designed to not only benefit repparttar 111741 small business that receives repparttar 111742 loan funds, but also repparttar 111743 community in which repparttar 111744 business resides. Each 504 loan is administered through a CDC, a private, nonprofit corporations set up to contribute to repparttar 111745 economic development of their specific community or region. The CDC will make small business loans up to a maximum of $2 million with repparttar 111746 understanding that repparttar 111747 business will use repparttar 111748 funds in a manner that will further community or regional public policy goals. Typical goals may include: business district revitalization, export expansion, rural development, expansion of minority business development, etc. In total, there are about 270 CDCs nationwide, each covering a specific geographical area.

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