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
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