Here lies an important question that who does not have enough money at a particular time has no right to see dreams? Is he not an authorized person to fulfil his desires? Should he stop dreaming? Definitely not, because there has a solution for these queries. Many types of loan options are available for this purposes only.
Here we are discussing Small Business Loan or SBA Loan. Before finding out an exact SBA loan for your business, you should gather some knowledge about the types of SBA loans which are available in the market. Basically, SBA lenders can offer longer terms instead of five or ten years for a real estate purchase with a big payment at the last. SBA lenders can offer terms for 25 years.
Before starting the discussion about the appropriate SBA loan for your business, you should understand the types of SBA loans.
Key SBA Loan Programs
Basically, SBA loans are specially designed for small business owners who don't have the access to other terms loans. There have four main types of loan available in the market for your small business such as 7(a) loan program, CDC/504 loan Program, Micro-loan program, and Disaster loans. Basically first two mentioned loans are most demanded in the market and if you have a small business and you are looking for a loan then this are the best options for you.
However, here we are discussing best business loan options and first two loan options are best for a small business.
7(a) Loan Program
SBA 7(a) loan program is a primary program to help start-ups and existing small businesses who are facing the financial problem. It is a most basic and most commonly used type of loan, also, it is a most flexible program. The debt money can be used for a variety of general business purposes such as working capital, equipment, and machinery, purchasing or renovating land and business building or office, furniture, and debt money refinancing.
Loan maturity option also good for a small business. Loan maturity is up to ten years for working capital and up to 25 years for stable assets. The debtor can apply through a participating lender company. The maximum amount of 7(a) loan program is $5 million.
CDC/504 Loan Program
SBA 504 loan program provides business with long term. The loan is typically structured with the SBA providing 40 percent of the total project value. Released funds from 504 loans can be used to purchase land, machinery, building and renovate facilities. These loans can not be used for inventory or working capital. The maximum amount of 504 loans is $10 million. It also offers flexible terms of 20 years for real estate and 10 years for equipment.
Find Out a Lender
Before starting the discussion about the appropriate SBA loan for your business, you should understand the types of SBA loans.
Key SBA Loan Programs
Basically, SBA loans are specially designed for small business owners who don't have the access to other terms loans. There have four main types of loan available in the market for your small business such as 7(a) loan program, CDC/504 loan Program, Micro-loan program, and Disaster loans. Basically first two mentioned loans are most demanded in the market and if you have a small business and you are looking for a loan then this are the best options for you.
However, here we are discussing best business loan options and first two loan options are best for a small business.
7(a) Loan Program
SBA 7(a) loan program is a primary program to help start-ups and existing small businesses who are facing the financial problem. It is a most basic and most commonly used type of loan, also, it is a most flexible program. The debt money can be used for a variety of general business purposes such as working capital, equipment, and machinery, purchasing or renovating land and business building or office, furniture, and debt money refinancing.
Loan maturity option also good for a small business. Loan maturity is up to ten years for working capital and up to 25 years for stable assets. The debtor can apply through a participating lender company. The maximum amount of 7(a) loan program is $5 million.
CDC/504 Loan Program
SBA 504 loan program provides business with long term. The loan is typically structured with the SBA providing 40 percent of the total project value. Released funds from 504 loans can be used to purchase land, machinery, building and renovate facilities. These loans can not be used for inventory or working capital. The maximum amount of 504 loans is $10 million. It also offers flexible terms of 20 years for real estate and 10 years for equipment.
Find Out a Lender
To find out an experienced lender in your area, you should talk to folks locally in the market and glance for a lender that is part of the SBA's preferred lender program. This program gives thousand of lenders per year, the authority to approve loans based on the criteria. You can find a good SBA lender by researching properly.
The SBA loan program takes businesses to the next level, it offers opportunity, good structure, and enables them to be successful.
