Monday, June 25, 2012

How FHA Loans Have Helped Thousands Of People

By Thelma Kent


Since the early fifties the American government has helped many thousands of small business owners and entrepreneurs to get going and to thrive. This is done through the Federal Housing Administration. Entrepreneurs are able to apply for FHA loans Rhode Island to set up or expand their businesses and to achieve a debt free position.

The Small Business Administration do not lend directly to applicants. Instead, it guarantees credit advanced by banks and other official lenders. Funds obtained through this process are normally paid back over a much longer period than normal bank loans. In cases of disaster, however, moneys are made available directly.

In order to qualify it is necessary to own or propose to own a small business. Any applicant must be able to show that he is not dominating any market. In most cases advances are requested to purchase the property where the business is established. Applicants can also use the funds to expand their businesses or to buy new assets, equipment or technology.

The program is most certainly not an easy route to money. Funding may not be used to pay existing debt, unless very good reasons for the refinancing of the business can be given. Taxes and penalties cannot be paid in this manner either. Funding has to be used the establishment or expansion of the business, not for investment purposes or the funding of private needs such as school fees.

There is hardly any major city in the United States that does not have an office of the Federal Housing Administration. In addition, more than two thousand five hundred chambers of commerce also act as advisors. Applicants are offered extensive training, advice and counseling to help them prepare realistic business plans and budgets.

With the help of fha loans Rhode Island entrepreneurs are assisted to open and run sound businesses. In this way they provide employment to many people, contribute to both the local and the national economy and take responsibility for their own lives. The entire system has worked very well and will continue to do so for years to come.




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