SBA Loan Options
A key part of managing and growing your small business is finding the appropriate funding for business needs.
The U.S. Small Business Administration works with lenders to provide loans to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions. SBA reduces risk for lenders and makes it easier for them to access capital. That makes it easier for small businesses to get loans.
When a loan is backed by the SBA, lenders view lending to you as less risky since the SBA will guarantee the loan. We would love to help you identify the right lender, the best loan options, and assist you with your loan package.
Here’s a brief overview of some of the loans available and links to where you can read more:
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The SBA’s most common loan program, it can be used for working capital, to refinance debt, to purchase furniture, fixtures, and supplies, and more.
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Used for purchase or construction of facilities and machinery, or improvement and modernization. Cannot be used for the many of the items a 7(a) loan can be used for.
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Loans of $50,000 or less (the average is $13,000) that help small businesses start or expand.
The SBA also has investment programs that may be a good fit for your business. These programs are more competitive and specialized than SBA-backed loans, so read the information carefully before applying:
The Small Business Investment Company (SBIC) are private funds regulated by the SBA that make equity and debt investments in small businesses.
The Small Business Innovation Research (SBIR) encourages small businesses to undertake research and development that has commercial potential.
The Small Business Technology Transfer (SBTT) is another program that offers funding in research and innovation.
Financing your new or existing business can be made easier by looking into these various SBA programs and ensuring your financial documents are in order.
Let’s find a loan that best fits your needs! Read 5 C’s of Credit to understand loan decision factors.