A Guide for Small Business Owners
What is an SBA Loan?
An SBA Loan is a type of financing provided by lenders and partially guaranteed by the Small Business Administration (SBA). These loans are specifically designed to support small businesses by offering favorable terms, lower down payments, and more flexible eligibility requirements than conventional loans.
Key Features:
Government-Backed Financing: Benefit from the security of a loan partially guaranteed by the SBA, which can increase your chances of approval and provide more favorable terms.
Lower Down Payments: Take advantage of lower down payment requirements, making it easier to secure the funding you need without exhausting your cash reserves.
Flexible Loan Options: Choose from a variety of SBA loan programs, including 7(a) loans, 504 loans, and microloans, each tailored to different business needs and goals.
Longer Repayment Terms: Enjoy extended repayment terms that can help manage your cash flow and make loan payments more affordable.
Broad Use of Funds: Use your SBA loan for a wide range of purposes, including working capital, equipment purchases, real estate acquisition, and business expansion.
SBA Loan Terms:
Loan Amount: Varies based on the specific SBA loan program and business needs, typically ranging from $5,000 to $5 million.
Loan Term: Typically 7 to 25 years, depending on the loan type and use of funds.
Interest Rate: Competitive rates determined by the SBA guidelines and market conditions.
Eligibility Requirements: Proof of business income, credit history, business plan, and ability to repay the loan. Additional requirements may vary based on the specific SBA loan program.
Additional Costs: Origination fees, guarantee fees, and other associated expenses.
Access the financial support that your small businesses need to thrive, with options including the 7(a) loan program and others.”
