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What Exactly Are the Benefits of an SBA Loan?

So… Everyone is talking about SBA loans. But what exactly are they and what does this mean for you as a current or potential business owner?


SBA stands for Small Business Administration, which is an agency that works with lenders to provide loans to small businesses. The SBA provides an easy way for small businesses to get a loan. Due to the SBA’s set guidelines for loans made by its partnering lenders, community development organizations, and micro-ending institutions, risk is reduced for the lender making it easy to access capital.


Okay, great. I can easily get loan, but how does this loan specifically benefit me as a business owner?

Glad you asked. Here are a couple of highlighted reasons why SBA loans are awesome:

 

1. A Competitive and Transparent Process

SBA loans have competitive rates and fees comparable to non-guaranteed loans. They can have up to a 25-year term and amount up to $8.5 million and always hold a quick and transparent approval process.

2. Continued Support

Some SBA loans come with continued support and counseling to help you start and run your small business, providing you with an ongoing education.

3. Unique and Flexible Benefits

SBA loans come with benefits unlike other loans. They have lower and flexible down payments, negotiable overhead requirements, and they are cash flow, not collateral, based.

4. Diversified Use

SBA loans can be used for a variety of business needs including:

  • Acquisitions
  • Expansions
  • Partner/manager/employee buyouts
  • Real Estate
  • Construction
  • Debt Refinance

 


Okay AWESOME. But am I eligible for this type of loan?

Great question.

All lenders and loan programs have unique eligibility requirements, but it is generally based on what a business does to receive its income, the character of its ownership and purpose, and its size. And good news. Even those with bad credit may qualify for startup funding. Below are a few general eligibility guidelines:

 

SBA Eligibility

 

 

Does this sound like something that would be helpful to you as a business owner?


Visit the SBA website to find a lender that matches your needs.

 

For more information visit SBA.gov

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