SBA Loans in 2023
Are you looking for the best small business loans and SBA loans to expand your company or to start the business that you’ve always dreamed of? Does the possibility of strict loan terms stress you out? Are you frightened by the possibility of high payments that you can’t afford? Fear no more, because the Small Business Administration offers favorable terms and extended payment schedules for borrowers just like you. Say goodbye to your fears and say hello to SBA loans.
Who Can Apply for an SBA Loan?
Thanks to the Small Business Administration, starting your own business or growing an existing company just got a lot easier. Now, there are opportunities for startup business loans and small business loans available that provide easy financing for nontraditional applicants. And, the great thing about SBA loans is that they’re perfect for people who might have had trouble obtaining loan approval for their business through other lenders, or whose business is located in a rural area, serving a population of low to medium incomes. In fact, the Small Business Administration caters to business owners who other lenders might shun. Minority-owned companies and rural business owners are encouraged to apply for a loan through the Small Business Administration. If you have the desire and the willingness to work towards your dream of owning or expanding your own business, an SBA loan just might be the right solution for you!
Get Started Today Toward Your Own Path to Success by Completing the Simple and Free, 90-Second SBA Online Loan Application Which is Available on Our Website!
Achieve Your Business Goals with an SBA Loan
When other lenders say no, SBA loans say yes. The Small Business Administration loan programs are specifically designed to offer opportunities to candidates who have everything it takes to run a successful business, with one exception: They lack the financial resources needed for their business to reach its maximum potential. Unlike other types of loans that place value on one’s financial assets, the SBA loan program takes into account unique factors when determining who they will approve for funding.
Don’t Let the Application Process Stop You!
If more people understood how SBA loans work, there would be a lot more people applying for business loans. However, many people are driven away from the application process because of unsubstantiated fears or misconceptions that are often based on past experiences with independent lenders. Fortunately, private lenders have little in common with the Small Business Administration’s loan program. These loans are backed by the government and were created as part of a governmental program to offer opportunities to new and growing businesses that may not have the same advantages as other businesses. So, even if you’ve had doubts about your abilities to obtain funding in the past, and even if you’ve been turned down by other loan companies, there’s still a chance that an SBA loan can provide the funds your business needs.
How Will an SBA Loan Help You Achieve Your Business’s Goals?
With an SBA loan, you’ll enjoy multiple advantages and opportunities, including:
- Increased Working Capital
- The Ability to Purchase or Improve Real Estate Property
- Affording New Equipment, Machinery, or Specialized Tools & Equipment
- Improved Permanent Capital
- Financing to Purchase a Franchise or Open a Second Business Location
You’ll also get:
- Loans of up to $5 million
- Competitive SBA loan rates
- Financing for up to 90% of your total business costs
- Generous repayment schedules extending up to 25 years
The SBA doesn’t lend directly to applicants. Instead, they work with a network of SBA preferred lenders who in turn, make transactions on their behalf. The Small Business Administration reduces the risk for borrowers, making it easier for them to access the capital they need to achieve their business’s goals.
The Benefits of SBA Loans and are SBA Loans for Startups?
SBA loans aren’t like other business loans that you may have heard about. In fact, if you’ve unsuccessfully applied for business funding before or been turned away by traditional lenders, you’ll be happy to hear that SBA loan programs are decidedly different. Take a look at what’s to love about these Small Business Administration funding options!
How are SBA Loans Different Than Traditional Business Funding?
An SBA loan is not your typical business loan. Here’s why.
- They are guaranteed by the government.
- It’s easier for applicants to access capital with an SBA loan than it is with traditional financing or bank loans.
- There are reduced risks with this type of financing.
- SBA loans offer competitive terms, including longer repayment periods & prime interest rates.
- Funding includes special benefits, such as low-down-payments, flexible overhead payments, and no collateral for some loans.
- Receive as much as $5.5 million in financing.
- Most business-related purposes, including working capital and fixed assets, are allowable when matched with an appropriate SBA funding option.
- Unique eligibility requirements create opportunities for non-traditional applications, such as location and character of its ownership (rather than high credit scores and an extensive credit history).
- A poor credit score won’t necessarily disqualify a loan applicant.
- Applicants who have exhausted their options for funding and are unable to secure business financing are given priority under the SBA loan program.
- Loans for U.S. exporters are available, including funds for debt refinancing, day-to-day operations, and advance orders with suppliers.
- Loan counseling and financial education are available to loan recipients.
- Financing targeted at lesser-served populations and rural areas is encouraged.
Benefits of the Small Business Administration
SBA loans are intended to give people, who may not otherwise be granted an opportunity, the chance to start or grow a business. Loan programs through the Small Business Administration take into consideration the audience and the area where the funds will benefit. The Small Business Administration also helps minority and women business owners secure funding.
What’s the Catch?
Prime interest rates and extended repayment schedules, approval for applicants with less-than-perfect credit, lenders eager to fund minority-owned businesses, and preferred financing for startups in low-traffic locations?
SBA loans almost sound too good to be true.
By now, it’s probably obvious just how vastly different SBA business financing is from other types of business financing. You might wonder if there’s some sort of catch that we’ve left out when explaining how these loans work. After all, what kind of loan program only offers opportunities to customers that nobody else is willing to finance (without hiking up interest rates!)?
You’ll be relieved to know that SBA loans aren’t a figment of our imagination. And, there’s no catch. But there is more to government-backed lending than helping out underdog entrepreneurs.
Funding for Small Business Administration Loans
Because the Small Business Administration is funded by the U.S. government, SBA loans are intended to boost the U.S. economy. They create jobs for U.S. workers, support U.S.-based industries, and help the citizens of the United States. The loans provided by the Small Business Association achieve this goal in a number of ways. SBA funding increases the odds that many businesses will be successful. These loans help provide more people with access to a greater selection of goods, services, and choices. Additionally, SBA financing boosts spending in the U.S.
These loans open opportunities for improved international trade without forcing companies to rely on countries outside of the United States for financing.
The Small Business Administration loan program opens doors to populations who have historically weathered an unfair share of obstacles doing business in America. Funds also aim to support U.S. agriculture and the farming industry, an industry that built and fueled our nation’s economy for many years but has recently taken a hit.
Of course, a thriving U.S. economy, healthy communities, successful startups, increased opportunities for jobs, and profitable use of America’s land resources offer far-reaching benefits that extend beyond the loan recipient. SBA loans are promising opportunities, not only for the businesses they fund but for the economy and community that surrounds them as well.
Types of SBA Loans and SBA Loan Rates
There are several types of SBA loans that are available to borrowers. The two most common types of SBA loans include:
SBA 7(a) Loans
These loans are the most popular type of SBA loan overall. They provide borrowers with working capital of up to $5 million. These loans are similar to USDA business and industry loans. Along with providing working capital, these loans can also be used for practically any business-related purpose, including refinancing debt or purchasing a business, real estate, or equipment. Interest rates for SBA 7(a) loans typically vary between 2% and 4.5% plus prime, which ends up being about 5% – 10%. These loans are especially attractive because of their extended repayment periods, which may be up to 25 years. Borrowers are expected to contribute a down payment and/or collateral. However, these loans do not have to be fully collateralized in order for an applicant to gain approval. Even applicants with less than perfect credit scores are encouraged to apply. The required credit score for an SBA 7(a) is around 680.
SBA CDC/504 Loans
SBA CDC/504 loans are best for borrowers who are interested in obtaining a loan to build or for the purchase of owner-occupied commercial real estate. Loans are funded by two types of lenders, typically a traditional lender or bank and a community development organization. One of the unique benefits of these loans is their low interest rates, which usually total between 4% and 6%. Repayment schedules can be for up to 25 years. Funds can be used for the construction, renovation, or purchase of owner-occupied commercial real estate, as well as the purchase of other fixed assets. Terms for these loans vary widely. The combination of two lenders makes it possible for borrowers to sometimes receive funds equaling as much as $20 million.
SBA Loans for Small Business
SBA loans offer a perfect solution for small businesses by providing loans that cover working capital, equipment, real estate, construction, and a wide range of other expenses. It’s important to note that these loans are not made directly by the Small Business Administration. In order to apply for an SBA loan, borrowers must work with a network of traditional lending institutions to receive their funds.
In addition to low interest rates and extended payment schedules, the advantages of SBA loans include potential counseling and educational opportunities for businesses, competitive interest rates, and flexible overhead requirements. Plus, they’re an attractive option for business owners who are unable to otherwise gain approval for other types of funding.
Applying for SBA Loans
Step 1: Log onto Small Business Administration (sba.gov) and review the SBA loan requirements to find out if you qualify for SBA financing. (SBA loans are open to a much larger audience than you might think!)
Step 2: Head over to our website and fill out the 90-second SBA loan application. (It’s free!)
Step 3: Let our financial advisors go to work, passing along your information and advocating for the best lending options possible.
Step 4: Someone will contact you to review your terms and options.
Step 5: Once you decide on the terms of your loan agreement, you’ll be well on your way to receiving the funds you need to achieve your business goals!
Before you know it, your dream of owning or growing your very own business can become a reality! But, the longer you wait, the more time you waste. Get started today by filling out a quick application on our website.
SBA Loan Requirements
If you’ve exhausted all of the traditional lending sources, and you’ve sacrificed blood, sweat, and tears, that’s the point when you might start to feel like all hope is lost. But we’ve got good news. We’ve just described the perfect candidate for an SBA loan!
To receive an SBA loan, you’ll have to meet certain requirements that include:
- Startup Business Loans or Existing Business Loans Must Benefit a For-Profit Business
- Your Business Must Be Based in the United States
- You’ve Invested Equity
- You’ve Exhausted Other Lending Options
If you meet those 4 simple requirements, by applying with Your FundingTree, you could receive up to 90% financing for anywhere between $50,000 dollars and $5.5 million dollars! Plus, you’ll get the best rates because all SBA loans are government-backed.
Call 704-904-0774 to Find Out if SBA Loans Are the Right Solution for Your Business!