$50,000.00 - $10 Million
5 to 25 Years
4 – 8%
As little as 30 – 45 days
An SBA loan is one of the lowest-cost options for business owners, making it a highly desirable option for growing your business affordably. While many business owners desire to obtain an SBA loan, they find it difficult to get approved for. Often they just need a helping hand. At Business Loan Networks, we have helped thousands of small business owners secure SBA loans. We use years of knowledge, confidence, and data to help you get the information you need to apply for an SBA loan.
How to Know Whether an SBA Loan is Right for You:
SBA stands for the Small Business Administration, a federal agency dedicated to assisting entrepreneurs succeed through small business solutions. A common misconception about SBA loans, however, is that the Small Business Administration loans money directly to small businesses. But in most cases, an SBA loan comes from a bank that participates in SBA financing. The administration uses federal funds to guarantee a certain percentage of those loans so that banks have more confidence they will not lose money. This confidence gives banks more incentive to loan to small businesses, making it easier for you to get the financing you need.
Because you are borrowing from a bank, the process to obtain an SBA can be a lengthy one. Banks examine your credit and financial statements and may require collateral in order to secure the loan. Despite a process that may take several months, SBA loans can be worth the wait thanks to their low interest rate and long repayment terms.
So how do you qualify for an SBA loan?
To start, you’ll complete an extensive loan application, but the result is worth the effort. You’ll also need to supply documents like your financial statements, collateral information, a description of your business, and a statement on how you will use loan proceeds.
Lenders look for applicants with a solid business plan, good credit, and strong record of repaying loans.
Types of SBA Loans:
There are different types of SBA loans available to qualifying business owners. These include:
1. The SBA 7(A) Loan: this covers many general business purposes.
2. The CDC/504 Loan: this is most often used to purchase major fixed assets such as equipment and commercial real estate.
3. The SBA Express Loan: this is for a small business in need of capital up to $350,000.
If you have trouble finding the right loan for your business needs, Business Loan Networks is happy to help determine the right loan for you and whether you may qualify. And if you don’t yet qualify, we’ll help you get there with expert advice on getting your credit where it needs to be.
Other Things to Remember:
The total cost of your SBA loan depends on the type of loan you obtain, as well as that loan’s dollar amount guaranteed, fees, interest rates, and repayment terms. Fees may include third party fixed closing cost (Appraisal, Environmental, Title Search, etc.) and SBA guarantee fee. Most cases, these fees can be financed.
SBA loans can help business owners save significantly compared to the costs involved in other financing options. Interest rates may be fixed or variable. The number of years you have to repay the loan depends on the type of loan used and the intended purpose of the loan.