Flexible and backed by the US Government, SBA loans can take your business growth to the next level with a number of options available.
Businesses are all very different, but whatever your business needs are, there is most likely an SBA loan that will work best for you. From startups in the garage to business that have been around for years, refinancing debt or purchasing a brick and mortar storefront, there’s probably an SBA loan that meets your individual business needs.
Small Business Administration (SBA) is a federally funded program that was started as an initiative to help promote small businesses ownership as well as provide easier access to much needed capital. The SBA does not offer the loan, they instead set up limitations and criteria for lenders. SBA then guarantees a portion of these loans. Because the SBA shoulders some of the risk for these loans, lenders have less risk and consequently are in a better position to offer loans and financing to small business owners in need of funding.
Whatever your business capital requirements are, there is an SBA loan available. Whether its construction costs or refinancing high interest debt or everything in between there is an SBA loan with your name on it.
When it comes to Small Business Administration backed financing, there are 2 common loan programs; SBA 7(a), SBA 504, and SBA express. Here is a quick break down of each.
SBA 7(a) Loan
The most flexible of the SBA funding options. The most common business uses are things like:
- Expanding an existing business
- Buying a new business or franchise
- Buy supplies and machinery for an existing or new business venture
- Refinancing high interest debt accrued in the course of business transactions
- Paying for construction costs on a new building or expanding an existing structure
SBA 504 Financing Option
The SBA 504 financing option is a bit more in depth, and may require a personal guarantee. Typically, a 504 loan is utilized to finance a fixed asset.
How do you qualify for this option? Qualification for a 504 loan requires a tangible net worth of at least $15 Million and net income of $5 Million. Here are some of the most common uses for the SBA 504 financing:
- Buying heavy machinery
- Purchasing existing building or land
- Renovating an existing manufacturing facility
SBA Express Loan
When you think of express you think quick and simple. As the name suggests, this is the quickest and may be the simplest SBA loan option available. These SBA Express loans are typically reviewed and may be approved in as little as 36 hours, but it may take up to 30 day to get actually receive the funds.