SBA Loans
SBA Loans
Lending Overview
Small businesses make up the vast majority of the nation’s economy but do not often get the funding they need. The U.S. Small Business Administration, or SBA, steps in to encourage lenders to approve small business loans. Then, small businesses can thrive and boost their local economy. SBA loans make it easier for small businesses to afford real estate, equipment, construction, refinancing, and working capital. They are not as difficult to qualify for as most bank loans, interest rates are capped by the SBA, and down payment requirements start at just 10%. These loans also support minority and women-owned businesses that might not get the funding they deserve from other lenders. Small businesses can qualify for $5M or more in funding for everything from working capital to buying out another company. Interest rates are just a few points over Prime and can be fixed or variable, depending on the loan. Contact us to find out how an SBA loan can benefit your business.
How to Effectively Apply Funds
Leverage SBA loans to fuel your business’s growth with tailored financing options for equipment, real estate, and working capital, designed to meet your specific needs and goals.
Two SBA loans – the 7a and the 504 – are used by small businesses to get equipment, buy real estate, take over businesses, build properties, and refinance expensive loans. However, only the SBA 7a allows borrowers to get working capital for their business. The two loans are structured differently and the one you choose will depend on your business’s structure and goals. A 504 loan uses a Certified Development Company to package funding from two different sources into one loan. 504 loans are good for businesses with multiple partners since there is no lien on outside collateral. 7a loans work better for businesses that need to borrow working capital. For more information, speak with our brokers.
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Customized to Meet Your Unique Goals
Real Estate
Whether you want new property for your business or need to renovate your existing space, SBA loans are an affordable way to get it done. Choose from a 20 or 25-year term, fixed or variable interest rate, and a 7a or 504 loan. Whatever your small business needs, our brokers can help you find it.
Equipment
Is your small business having trouble getting financing for the equipment it needs? If you have been turned down for equipment loans, turn to the SBA. The SBA offers fixed or variable-rate equipment loans with a 10-year term and a 10% minimum down payment. We will show you how to use an SBA loan to your advantage.
Refinance
If you are stuck in a high-interest rate loan, it can take years to get ahead. You might qualify for a better rate now than when you first applied. A lower-rate loan frees up working capital for your small business to invest and grow. Refinance that high-interest loan into a low-interest rate SBA 7(a) loan with the help of our brokerage.
Advantages
Enhance your business’s growth potential and financial stability with SBA loans, offering favorable terms, lower down payments, and flexible use of funds.
Low Interest Rates
Fixed or Variable-Rate Loans
Low Minimum Down Payment
Covers Most Small Business Needs
FAQ’s
Got Questions? We Got Answers!
Q. How do I qualify for an SBA loan?
To qualify as a small business under SBA guidelines, a business must have less than $15M in assets and $5M or less in annual net revenue. The number of employees can also limit eligibility, but the maximum varies by industry. Perspective borrowers must have exhausted other avenues of financing before applying with the SBA. For most loans, a 10% minimum down payment is also required. To learn more about how to qualify for an SBA loan, contact our brokers today.
Q. What is the difference between SBA 7a and 504 loans?
There are several differences between these loans, but the main one is that the SBA 7a loan can provide working capital while the SBA 504 loan cannot. The 7a also has a variable rate and the 504 has a fixed rate. For more information, contact a broker.
Q. When is an SBA loan not the right fit?
SBA loans are a great way to finance small business expenses, but not every business will qualify. Businesses like religious organizations, casinos, real estate agencies, and rare coin dealers aren’t eligible for SBA loans. Borrowers also can’t have delinquent federal debt, such as taxes or student loans. If your business fits any of these descriptions, talk to us about CRE loans, working capital loans, and hard money loans to get what you need.
Q. I have had trouble getting a small business loan. Can the SBA help?
Yes, the SBA can help you even if you have been turned down before. In fact, it is a requirement of the SBA that you explore other funding opportunities first. Some consider SBA loans to be “second chance” loans specifically because they can help a business that has had trouble in the past. Ask us how to apply.
