Small biz money not as hard to get as you might think

Since John Rutledge and I started taking the Entrepreneur calls on Fox Business Saturdays 1-2pm EST, we've had a lot of call-ins with people asking if it's "really hard" to get money, where they should go to get it, and what they need to do to make their dreams a reality. The focus of our show is all about not whining, and not waiting for people to come to you with aid - but to tap into the American spirit we see alive and well in so many viewers, emails, twitter followers, students, book readers and so on. This is not a very PC show, for those of you who have watched it. :)

I think one of the most common mistakes people make is listening to Washington. They're trying to get re-elected; with the exception of very few, they don't really care if you panic because they'll be seen as heros when you stop! So don't let them create the reaction! Yes, our 401ks suck. Yes, who likes logging into eTrade and seeing much of your portfolio wiped away? Or delaying retirement? Or having our houses under water? Or being late on our bills? I realized today that the market is only 5 years off from being at the level it was at when I first started investing! That is enough to make even sane rational people a bit (aka not politicians) freaked.

What we have to focus on is not letting the politicians who are telling us how bad things are so they can spend money for outrageous things like a World Trade Center in Montana and pig-stench research convince us that 1) this "spending" will help, or that 2) this is a sign of how bad things are. The only thing this is a sign of is how stupid our politicians are!

You watch our show, you may have read one of our books, bla bla.. and you want the bottom line. You want to know how to take your idea, get some CASH, and go for it. You may be in the boat that thinks money is harder to get these days than Hillary Clinton looking comfortable in stiletto's and a skirt, know this - it isn't. In fact, thanks to the Obama administration's pork-ridden bill (did I just say thanks? It isn't taxes, think of it as a big tip for Obama) the government has nearly $700 billion more to spend on small businesses. Yes, they'll try to tax it away from you later, but that shouldn't stop you from trying to earn it now. If you spend it all, there are no earnings left to tax. ;) (How is THAT for stimulus!?)

One of the most commonly asked questions is, what kind of loan can I get from the Small Business Admin?

First, know that the SBA doesn't lend. It backs banks that do. It makes it safe for banks to give you money, and right now, quite a lot of it at relatively cheap prices. Think of this as a Fannie/Freddie back in the days when F and F weren't run by morons (or no one was watching).

Go to the SBA.gov and look at the loan types, but here is a quick rundown of the types, and what you can get:

Community Express
250k
Price? Prime plus 2.25%
7 year loan, and you'll have an answer in 36 hours
No collateral
Focused on helping distressed communities

Express Loan
350k
50% SBA guaranteed; 50% bank or collateral
6.5% over prime (eek!)
36 hour turnaround time

Patriot
500k
2.25% over prime
Vet/active duty/reserves/guard/spouse
7 year loan
36 hour turnaround

7a) Capital, Land, Building
10 year loan, rates and time vary

Microloan 7m
35k, inventory, supplies, furniture
Can’t be used to pay existing debt or for real estate

CDC504
Long term
Brick and mortar only - sorry Internet businesses

In addition to this, check out whitehouse.gov in mid March for information on how you can get grants if you're developing clean technology, green "stuff" or anything else that someone like me won't use, but sure can get a lot of dough in this environment.

Most importantly, don't let the government get in the way of your dreams. The government is a buzz killer. Only YOU know your own worth - if someone tells you directly or indirectly you aren't worth the price, give them the finger. It isn't just easier said than done, I do it every day. Believe it or not, it can feel good.

And watch our show every Saturday. :) Thefoxdocs.com

Dani