SBA
It takes perseverance and dedication to make your small business goals come to fruition. But not all lenders are willing to take a chance on startups and mom and pop shops based on drive and commitment alone. If you’ve been turned down for a small business loan, try a loan backed by the SBA. You can get affordable financing at a fixed rate you won’t find through anyone else.
What are
SBA Loans?
The U.S. Small Business Administration is a federal agency set up to help out companies that create jobs in their local economies.
They encourage private lenders to provide affordable financing to small businesses by acting as a guarantor. But you can’t get these loans directly through the SBA. Our brokers will introduce you to a private lender or Certified Development Company that works with you to provide the loan.
SBA loans can help you buy real estate and equipment, start a construction project, or get working capital.
Interest rates are capped by the SBA, which keeps your costs down. Variable terms are available, depending on what you use the loan for. When other lenders refuse to help, the SBA can be your lifeline to the financing you need.
To be eligible for an SBA loan, you must have a for-profit company operating in the U.S. Most businesses with $15M in net worth and $5M in net annual revenue are eligible.
Any owners and stakeholders should be current on any federal debt (i.e. taxes or student loans) and can’t be on parole. Some types of businesses like casinos, real estate investors, banks, and churches don’t qualify for SBA funding.
SBA 7(a)
The SBA 7(a) is a great way to get working capital so you can handle day-to-day needs like utilities, rent, and payroll. It’s flexible and can be approved in just a few days, making it the most popular SBA loan. Get up to $5M in working capital for your small business today.
SBA 504
The SBA 504 can provide your small business with $5M or more to finance fixed assets like real estate and heavy equipment. You can get 90% of your costs covered for land, renovations, construction, and refinancing with a 10% down payment. The 504 is ideal for building environmentally sustainable improvements.
Relief
In addition to its regular loan options, the SBA also provides financial relief to small businesses affected by the pandemic and natural disasters. If your business has been hit by circumstances outside of your control, talk to us about how to get SBA funding. We’ll help you find out if you qualify and how to apply.
What Are The
Advatanges
Get $5M or more in funding.
Great for women and minority-owned businesses.
Interest rates capped by the SBA.
Offers a second chance if you’ve already been turned down.
F.A.Q.’s
Q. When is an SBA loan not a good fit?
SBA loans have eligibility requirements that not all businesses will be able to meet. If you’re a non-profit, have too many employees, or hold real estate, we can help you find financing that’s a better fit.
Q. What’s the difference - SBA 7(a) vs. 504?
The main difference between the two loans is that the SBA 7(a) can be used for working capital and the 504 cannot. You can only get an SBA 504 through a Certified Development Company, but the SBA 7(a) can come from a private lender. Let us guide you through the SBA’s options and help you decide which one is best for your small business.
Q. How does an SBA 504 loan work?
The 504 loan is made up of three parts: a 10% down payment, 40% from a CDC, and 50% from a conventional lender. There are then two liens on the property being financed, one from the conventional lender, and the second from the CDC.
Q. How do I qualify for an SBA loan?
If you meet the minimum eligibility requirements for type, size, and revenue, you’ll still need to qualify for a loan. Whether you qualify depends on your reason for the loan, your credit history, and how long you want to borrow. Meeting with a professional broker can take the guesswork out of the application process.
