Brush Stroke

How to Get an SBA Loan in 12 Steps

By: Mary Jones

traveling knowledge

What are SBA Loans?

Except for Disaster Loans, the SBA doesn’t make small business loans. Individual lenders make SBA loans, which are typically guaranteed in part by the U.S. Small Business Administration (SBA), a federal government agency.

What is the SBA?

SBA loans are just a part of what it offers. Small business owners can also get free counseling through resource partners such as Small Business Development Centers, SCORE, Veterans Business Outreach Centers 

Benefits of SBA Loans

SBA loans are considered good business loans, with small business-friendly terms. Here, you’ll learn about the types of SBA loans and why you should consider this popular type of funding for your small business.

How the SBA Helps Small Businesses

The guaranty helps reduce the risk to the lender. The SBA sets detailed standards that these loans must meet. If the lender has followed SBA guidelines

SBA Loan Interest Rates

The SBA sets a maximum interest rate that may be charged, but beyond that, interest rates on SBA loans can often be negotiated between the borrower and the lender.

Types of SBA Loans

The SBA was created in 1953 and is a U.S. federal government agency tasked with providing access to capital, along with counseling, exporting and contracting expertise for entrepreneurs.

SBA 7(a) Loans

These loans may be used for a variety of purposes including new construction, expansion or renovation, or to purchase land or buildings; to purchase equipment, fixtures, leasehold improvements; working capital

SBA Express Loans

These are smaller loans (up to $500,000) with a faster turnaround for approval. They are currently the most popular SBA loan program in terms of total amounts funded

SBA 504 Loans

SBA CDC 504 Loan program provides small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. Loans are made through partnership with a non-profit

SBA Microloans

SBA Microloans are smaller loans made primarily by non-profit community-based organizations. Loan proceeds may be used for working capital, supplies, machinery and equipment, fixtures, etc.

SBA Disaster Loans

The SBA Disaster Assistance program offers loans to qualified businesses to help them recover from a federally declared disaster. Business Physical Disaster Loans can be used to repair

More Details

For full details about this information please visit our website click on given link below.