SBA Loans

 

SBA loans are issued by private lenders and backed by the U.S. Federal Government’s Small Business Administration (SBA). There are over 800 lenders, community organizations and micro-lending institutions that are authorized to issue SBA loans across  the United Stated

Lenders for SBA loans have unique eligibility requirements. Some of the main requirements include being a for-profit business, Do business in the U.S., have already invested in the business and exhausted financing options.

 

Types of SBA Loans:

 

7(a) SBA program:

 

The SBA 7(a) is the most common SBA loan and has the widest range of uses for small businesses. These loans can cover things like

•           Short Term and Long Term Capital

•           Purchase furniture, equipment, supplies, inventory etc.

•           Refinance current business debt.

•           Purchase of Real Estate, construction of new building or renovation of existing building.

 

504 SBA Program

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The SBA 504 loan program offers loans to assist business owners with the purchase of owner occupied commercial real estate and fixed assets such as equipment. These SBA loans feature low interest rates, low down payments, and great rate terms.  The SBA 504 loan program is mainly designed to assist healthy, expanding businesses that have been in operation for mor than two years.

 

  

Microloan Program (Express Loans)

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Business owners can use SBA Microloans for a range of purposes, including working capital or buying equipment, inventory, supplies and more. SBA Microloans loan amounts go up to $50,000. The average loan is around $14,000. SBA loans are very accessible loans for small businesses, even start-up entrepreneurs. Many of these loans are assessable to women, minorities, veterans, low-income persons, under represented population and everyone. These loans are also available to non-profit child care centers.