SBA Loans, Our Tax Dollars At Work
Government Guaranteed Loans To The Rescue
SBA or Small Business Administration Loans are one of the best ways to finance a small business in today’s market. SBA loans are popular because the rates associated with these loans are low. they are low because the federal government guarantees the loan, this fact frees the lender to be a little more aggressive when underwriting these loans. They do have very detailed and specific guidelines to follow which for many makes this type of loan a little more difficult.
We offer SBA loans for small businesses throughout the United States, be sure to ask your representative if you are a good candidate for this cost effective loan option.
Why an SBA Loan Over A Bank Loan?
Borrowers usually receive longer terms to pay back with much lower interest rates than they would with conventional loans. SBA loans are also guaranteed and backed by the government. The SBA themselves does not offer the loans, instead it is offered by approved lenders such as loans for small businesses and its partners.
The SBA guarantees up to 85% of the loans. This allows lenders to lend to businesses that might not have been qualified for conventional loan due to little or no collateral and small down payment. The SBA program with its guarantee makes it less of a risk of a risk to lenders that offer this loan.
The paper work and the time to process can take several months and many people ultimately decide to not bother and never go through the process. We at LoansforSmallBusinesses.net and its affiliate partners have cut the process down to about 2 weeks for a decision on applicant approval.
The Most Common SBA Loan is SBA 7A- General Small Business Loan
It Can Be Used For The Following
- Refinance Debt
- New Hires
- Working Capital
- Commercial Real Estate
- New Construction
- Equipment Purchases
- Buy an existing Business
Loan Amount – Up To 5 Million
Interest Rates – 5.75–8.25
Basic Requirements – 680 + 10%-20% Downpayment
Payback Terms –
25 Years on Commercial Real Estate Loans
10 Years- For Working Capital Loans
SBA Loans For Startups
While not impossible to get, it’s very difficult with very low odds. Lenders will need to see 680+. No recent bankruptcies, foreclosures, or tax liens. The lender will need to see industry or management experience. The higher the FICO score, net worth, real estate and collateral the better the odds.
How To Apply
To Apply For SBA 7A Loan – First do a checklist to see that you are eligible.
- 680+ Fico Score
- 10% or more down payment for purchase of commercial property or purchase of business
- For Working Capital- Must be in business a minimum of 2 years and profitable.
- Collateral of some kind, the more the better chance of being approved for an SBA Loan.
- Commercial Real Estate Loans must be at least 51% owner occupied.
- No previous defaults to any Government agencies including student loans.
- Business must be in the USA and be for profit.
- Must demonstrate the need for the money
If you checked yes to everything on your check list and are ready to apply for an SBA Loan. Call us at 407-269-8286 7 days a week 9am -6pm and we will get you started