SBA Loan

SBA (Small Business Administration) is a federal government agency in the US which can help you start your business if you have talent and passion. If you have a business idea and you want to make it practical by starting that particular business but have no resources or are afraid of using limited available resources, then you should think of SBA. It will not lend you money directly. The agency has made its partners which include banks, credit unions etc. It provides you a loan through these partners by guaranteeing a bond and rules for its return. It will provide you loan from the third party and set guidelines for you and the loan provider.
SBA provides a number of loan programs. These include General Business loan, Microloan Program, Real estate and equipment loans, Disaster loans, and general loan programs.
The general small business program is the most common business program. This includes financial help for businesses with special requirement. They can lend you money for a new business or assist in the expansion of the current business. They provide means of negotiation for term and conditions of loans between a borrower and an SBA approved lender.7 (a) program is for small business startups. The money can be used for new office setup, buying stationary and IT products, or other required machinery. The CDC/504 loan program is a loan term major assets loan. SBA provides 40% of total cost in this type of loan. The maximum amount in this type of loan is $5 million.
The second type of loan program is for small businesses. If you are interested in starting a non-profit child care institute this is your category. This type of loan also applies to a special non-profit community organization which can also provide technical assistant by this body. This also includes Inventory, supplies, furniture and machinery etc. Loan repayment factors depend upon loan amount and other conditions set by money lenders and this SBA.
If you want to buy assets for your business to enhance it then don’t forget real estate and equipment loans service provided by SBA.
If you have faced a disaster and need a loan for it, then Disaster loan can be avail from this organization. This opportunity can not only avail by small businesses and non-profit bodies but also homeowners and renters. Real estate, personal property, machinery, inventory and business assets all can be repair or replaced.
The Surety bond facility of this agency is beneficial for small businesses who cannot obtain surety from other authorized bodies.
SBA loan lenders feel comfortable with longer return policy also. Instead of five to 10 years, the period can be extended to 25 years also.
How to apply for a loan through this body? Depending upon the situation you are going through that is starting a new business or expanding it, or you have gone through a financial loss through some disaster, decide which type of loan category suits you in available types of a loan by SBA. You will have to fill out some forms related to the type of your loan and will provide some necessary information. They will ask about your background and financial condition. You will have to give proofs through documents. They may ask related financial statements, business overview or plan, your experience, and knowledge in related business, certificates etc, profit and loss statements and related information and in some cases resumes of key team members. Some other points in which SBA is interested are:
• How will you use the loan?
• What assets are you purchasing and how it is related to your working?
• Who are supplying you assets?
• Are you in other business debt? And who are your lenders or creditors?
• Detailed list of all related members and partners directly or indirectly related.
After this SBA will guide you in deciding or choosing a lender for.

SBA Loan was last modified: March 14th, 2017 by admin
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