SBA Loans

An SBA loan is a small-business loan that is issued by a private lender but partially guaranteed by the U.S. Small Business Administration (SBA). This government backing reduces risk for the lender, allowing them to offer potentially more competitive terms and higher amounts than traditional loans, often for businesses that may not qualify otherwise. These loans can be used for various purposes, including startup costs, working capital, equipment, and real estate. These loans typically have some very favorable terms

Key features of SBA loans

• Government guarantee: The SBA guarantees a portion of the loan, which lowers the risk for the lending institution.
• Private lenders: The loans are issued by banks and other financial institutions, not directly by the SBA (except in certain disaster situations).
• Variety of uses: Funds can be used for working capital, purchasing equipment or real estate, or other business expansion needs.
• Competitive terms: The SBA’s guarantee can lead to longer repayment terms, lower down payments, and competitive interest rates.
• Eligibility requirements: To qualify, businesses must meet SBA size standards, have a sound business purpose, and be able to repay the loan.
• Common loan types: Popular programs include the 7(a) loan program (for general business purposes), the 504 loan program (for fixed assets like real estate and equipment), and microloans (for smaller needs). 

These loans typically have some very favorable terms but can take longer to apply and be tricky to navigate. Talk to us today to get your application started.