So - What Exactly IS the Definition of “Small Business” ? And - Why is it so Hard to Find Funding?

The answer might surprise you….but according to the U.S. Small Business Administration (SBA) the definition is “independent businesses with fewer than 500 employees” – and that makes most of “us” small businesses – regardless of if we are doing tens of millions of annual revenue!

I don’t really agree with that definition (if you are an industry leading 390-employee private company doing $50 MIL+ in annual revenue, you fit into this description?? “What”) – but it IS what it is at this time, like it or not!

So, if you are in this group, which is most of us, (matter of fact ~33.2 million small businesses in the U.S. – that account for roughly 99% of all US firms (according to the U.S. Chamber of Commerce), you are not alone. We (“Small Business” Owners) are in the majority and are clearly the lifeblood of the country’s economy. There is an additional very relevant fact; we historically (Small Business Owners of America) create nearly ~44% of the Gross Domestic Product (GDP) of the United States annually.

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The interesting thing about these facts is that it should give “us” a lot of banking clout; unfortunately, that is NOT the case. What exactly do I mean by that? Well – let me be direct; We (for the most part) are NOT offered the same type of Credit and Capital facilities as “Corporate America” (aka – Wall Street Firms) and not just because of our size. In general “Small Business” (American) owners are mostly trapped inside a historic banking system that forces the owners of those small businesses to utilize their own personal credit resources, and/or also pledge personal/family assets in the form of personal guarantees (on what is being titled a “business loan”) which is a very unfair, and an unequal financial credit ‘system’.?

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The statistics prove what I am saying here. According to a report from Q-1 of 2023 (Source MetLife and U.S. Chamber of Commerce Small Business Index) small business owners from the size of 0-4 employees site that 76% of business owners use their personal savings (or personal assets) to fund business credit and capital growth needs; and, in fact nearly ~60% of business owners in the range of 5-500 employees use their personal savings (or personal assets) to fund business credit and capital business growth needs as their number 1 source for funding! The next relevant category in this report indicated America’s small business owners in these same reported business sizes above use credit cards as their second most used source of finding Capital or financing to grow. As crazy as it sounds clear down then in fourth and fifth place are local/regional banks (or credit unions) and National banks that these small business owners finally turn to for growth capitalization. One of the primary reasons for these statistics above is that it is so difficult to get conventional bank financing; and when a small business owner actually does achieve a loan approval, 99% of the time they have to leverage their personal (or family) assets (through a PG – personal guarantee, or personal asset encumbrance) and also normally sacrifice their personal credit scores (due to imbalanced credit utilization) to obtain their needed business Capital & Credit funding.

Are you in this situation? – then read on!

The real question here is WHY? Why is it so hard to find funding for the small business owner?

ANSWER: Because 99% of small business owners have never been told the truth (or shown the path) on HOW to get real “Corporate-Style” funding (aka: how to get direct Business Entity Credit & Capital to their business ID, not via their SSN). That is what is called (in the banking world) ‘non-recourse’ funding. If you don’t believe what I’m saying, pick up the phone right now and call YOUR bank; ask your representative if they do ‘NON-RECOURSE’ loans in any circumstances for businesses? Still doubtful about what I’m telling you? Take it wildly a lot further – pick up the phone and call every bank in your town and ask that question, or every bank in your state! You get the point. Then - ?Ask yourself this; when is the last time you ever heard of? a BIG fortune 500 company CEO/President having to offer their own credit report, or a personal guarantee, to get the business loans they need on business credit lines or Capital loans?

?You are right NEVER! ????So – interested in leveling the playing field??

Would you like to find out EXACTLY how this type of business lending and credit can be obtained? I know how – and We (at the Laughlin Business Credit Advisory Group) can detail the How’s, Why’s and Where’s to develop and get Business Entity Credit & Capital. Here is the interesting thing about us – we are not a “lender or a broker, “we’re in the business credit advisory space. We will be glad to educate, show and prove to you there is a better way for you via a proven platform, more modern way to get your personal credit and business credit permanently separated for your own well-being. While it takes some business owner due-diligence, and it takes some focused time along with intentional effort to change your historic business credit path, it can be done in less than a year. You can adapt from the traditional way you currently understand and learn to control, develop and actually direct your business entity credit profile and company “corporate” lending picture. You can have unlimited business credit facilities - just like the Wall Street Corporations do.

It can be done!

I am willing to give you some free advanced education and strategy… to find out how important current business lending AI decision systems are operating today.

Start by reviewing this eye-opening short video on how FICO SBSS scores are used by computer (AI) modeling to determine if your business can ‘get’ a loan – Click this link included here to view: https://vimeo.com/514795759/1a1a93c2a7?share=copy

?If this doesn’t give you a high level of concern about wanting to change the Credit and Capital narrative and availability for your business then – We can’t help you: but if it does and you are ready to do something about it reach out to educate yourself ?- by Jeff Shada, MBA www.laughlinbizcredit.com