SBA Loans
Low rates: interest rates are capped
Low down: down payments start at just 10%
Versatile: get an SBA loan for most expenses
Fixed and variable rates are available
SBA Loans
Lending Overview
The U.S. Small Business Administration supports local economies and job growth by offering low-cost loans to small businesses with SBA approval. The SBA acts like a guarantor on loans for real estate, equipment, construction, and more to reduce lender risk. Reduced lender risk means more benefits for businesses seeking financing. The SBA’s two main loan offerings are the SBA 7a and the SBA 504 loans. Both can cover the costs of real estate, equipment, refinancing, and other projects, but only the 7a provides working capital. Which one you choose will depend on the structure of your business and what you’ll be applying the funds toward. To qualify as a small business, your company must have less than $5M in net annual revenue and less than $15M in net worth. Some types of businesses aren’t eligible, so make sure to check with a broker before applying.
The Funding Lane
How to Effectively Apply Funds
SSBA loans, ideal for small businesses that have struggled to secure funding elsewhere, come with the benefit of low down payments—starting at just 10%. This makes them ideal for young companies and those with bad credit. Where other lenders aren’t willing to take a risk on these businesses, SBA-backed loans are different. You can use one to buy a business and take over its real estate, buy and renovate property, bring in new technology and equipment, or get funding for an important project. Fixed and variable rate options are available and interest rates are capped by the government. SBA loans have a minimum 10% down payment, which can save you money on your initial investment.
Real Estate
Equipment
Working Capital
WORKING CAPITAL
The SBA 7a provides working capital to small businesses that can’t get it from their bank or credit union. They provide the means to cover short-term expenses and cover gaps in revenue. If your business is experiencing restricted cash flow, speak with our professional brokers about an SBA loan today.
SBA LOAN TYPES FOR VARIOUS BUSINESS NEEDS
Understanding the different types of SBA loans can help you select the best option for your business’s specific financial needs. Here’s a breakdown of the most common SBA loan types and their intended uses:
- SBA 7(a) Loans are the most versatile and popular SBA loan program. They are ideal for a wide range of general business purposes, including working capital, refinancing existing debt, purchasing equipment, and buying real estate.
- SBA 504 Loans: Specifically designed for purchasing major fixed assets that promote business growth and job creation, such as buildings and heavy machinery, with long-term, fixed-rate financing options.
- SBA Microloans: Targeted towards smaller businesses and nonprofit childcare centers needing small-scale financing up to $50,000 to start-up, expand, or refurbish.
- SBA Disaster Loans: Offered to businesses of all sizes that need to repair or replace damaged property or assets in a declared disaster area, including not only physical damage but also economic injury due to a disaster.
Each loan type comes with specific eligibility requirements, interest rates, and terms, tailored to support various aspects of business growth and sustainability.
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FAQ’s
We believe that the more you know, the better the decisions you make. And in the financing world, better decisions mean lower rates, better terms, and increased profitability.
These FAQs are only the start. Our team is here to answer all of your questions and support you in finding the best financing solution for your unique scenario.