There Are Many SBA Loans that Might Be Right for You
Minimal collateral, credit concerns, and higher-risk business ideas can create problems when trying to get a loan. If this is your situation, an SBA Loan may be a solution. These loans can be used for general business purposes, the purchase of assets or real property, and working capital.
The U. S. Small Business Administration (SBA) wants to see you succeed. The organization provides a wealth of tools, and may even guarantee your loan. In any given year, the government will back billions of dollars in SBA loans, which means innumerable small businesses just like yours can benefit. It’s a lot like having a friend with excellent credit, agreeing to cosign on your business loan, though only banks and credit unions that have partnered with the Small Business Administration are permitted to offer the service. Because the government is willing to accept most of the risk of your SBA guaranteed loan, the credit union partners of Business Loan Connection are more likely to be able to help you, even if you lack the credit or assets to obtain funding otherwise.
SBA Loans Can Be a Long-Term Lending Solution
The most widely-utilized SBA guaranteed loan is known as the 7(a) Loan Program. Working capital is generally made available for 7 years, while fixed assets may have up to a 25-year term. The amount of funds available will vary, though well-qualified borrowers may be able to receive millions. Those whose needs are smaller may be able to obtain funds with as little as 15 percent down, and the government caps interest rates, which makes it a very affordable option. You may benefit from the 7(a) program if you:
- Need to purchase a business
- Need to purchase commercial real estate
- Need equipment
- Require working capital
- Would like to refinance other debts
- Simply want easier loan terms with a low interest rate
There are Additional SBA Loans Dedicated to Securing and Updating Venues
There’s also an SBA guaranteed loan dedicated to community development, which is referred to as a CDC or 504 Loan Program. CDCs, or Certified Development Companies, are nonprofit organizations that coordinate efforts with lenders and the Small Business Association to help build up communities. Businesses benefit because this plan enables them to purchase a property, perform renovations, or purchase equipment, with as little as 10 percent down. Like the 7(a), the 504 also makes low interest rates available and may help small businesses obtain funding when they might otherwise have difficulty.
If you have questions about SBA loans, contact the dedicated specialist at our credit union partner nearest you. You may also apply for an SBA guaranteed loan online, using our quick and easy form now.