1. MY BUSINESS LOAN By Cheyenne McMillin

2. THE THREE LOAN CHOICES  SBA Business Loan  Start-up Loan  Term Loan

3. SBA BUSINESS LOAN Is a loan for a small businesses from a private-sector lenders (banks, etc.) which are guaranteed by the SBA. The SBA has no funds for direct lending or loans to small businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. CDCs work with the SBA and private- sector lenders to provide the financing.

4. START-UP LOAN It’s pretty self-explanatory, it is a loan to start-up a business.

5. TERM LOAN Is a loan that has monthly principal and interest payments. The outstanding principal amount decreases each month. Generally, term loans are established to assist in financing long term assets such as computers or equipment. The amortization period should closely match the useful life of the asset purchased (a term loan for computers should have an amortization period of not more than 3 years). Most term loans have an amortization period of 5 years or less (but there are exceptions).

6. MY FIRST OPTION  Value of Loan - $20,000  Interest Rate - 10.99%  Monthly Payment - $516.81  Term 48 months - 4 years

7. MY SECOND OPTION  Value of Loan - $20,000  Interest Rate - 9.99%  Monthly Payments- $645.25  Term 36 months – 3 years

8. MY THIRD OPTION  Value of Loan - $20,000  Interest Rate – 8.5%  Monthly Payment - $631.35  Term 36 months – 3 years

9. THE ONE I CHOSE I chose the third interest loan because it has the lowest interest rate of all three of my loan options, and the monthly payment is also lower than my other options as well.

10. THE TOTAL This is the total amount of money I would have to pay back for each of the three loans.  First Option - $24,807.08  Second Option - $23,197.21  Third Option - $22,715.34

11. CHANGE IN THE INTEREST RATE  My interest rate is 8.5%  Decreasing the interest rate to 7.5% would bring my total interest rate down by about $9.23  Increasing the interest rate to 9.5% would bring my total interest rate up by about $9.31

12. EXTRA LOAN PAYMENTS  If I would pay an extra $100 for a total of 6 months my loan could be paid of in 34 months instead of 36.  It doesn’t matter if I pay the extra $100 in the beginning, middle, or end of the term.

13. THE PROFIT Monthly La Bella Vita made a profit of about $17,085. Paying the monthly payment of $631.35, I would still make a profit of about $16,453.65.