What is an SBA Loan?
The Small Business Administration (SBA) loan enables the borrower to get funds via an SBA-approved lender.
Whether you want to consolidate your existing loan or to buy real estate, you can get financing through an SBA loan. You can borrow money under the US-based Small Business Administration’s “SBA loan” programs. The loan can be for any business purpose, including:
- Working capital
- Refinancing other debts
- Buying equipment or inventory
- Purchasing real estate
- Funding or other business acquisitions
- And more
The two most common SBA loan programs include the SBA 7(a) and Microloans.
The SBA 7(a) loan is a type of financing option that is provided by an agency. The 7(a) SBA loan was introduced to help small businesses secure working capital from commercial lenders and allows you to borrow up to $350k.
SBA microloan program, on the other hand, is designed to offer to fund the non-profit lenders that, in turn, extend financing to for-profit businesses. Unlike SBA 7(a) loans, SBA microloans have a minimum amount of $500 and a maximum amount of $50k, and the federal agency does not guarantee the loan.
An SBA loan is an excellent financing option for underserved entrepreneurs, including veterans, women, and minorities. Also, entrepreneurs with limited credit history can qualify for an SBA loan.
WHY APPLY FOR AN SBA LOAN FROM US
When you pick Business Funding Solutions, you choose the best business partner. We make the process of acquiring the SBA loan less tedious, and we work with you throughout the process.
Our SBA loans have:
- Low down payments- The down payment is as little as 10% of the total amount.
- Long term lengths- The SBA loans can have 5 to 25-year term lengths. Ten years loan is for working capital, and 25 years are the backed real-estate loans.
- Low-interest rates – SBA loans APR starts from 6.5%.
- A federal guarantee– Small Business Administration guarantees the lender up to 85% of the loan amount.
All you need is:
- A good business plan with actual estimated financial projections
- Some form of collateral
Are you ready to take your business to the next level?