The Small Business Administration (SBA) offers several different funding options, with the 7(a) Program being the most popular. It’s geared toward providing funding to small business owners who find difficulty getting funding through other avenues.
Aside from having very competitive rates and terms, SBA 7(a) loans are also flexible. There are typically no restrictions on use of funds, as long as the purpose is business related. This includes (but is not limited to) acquiring a business, refinancing, startup funds, equipment, partner buyout, and the purchase of real estate.
SBA 7(a) loans are available to almost all business types and industries, and play a role in stimulating economic growth by allowing capital to flow into small businesses and entrepreneurs in underserved communities. Loan sizes can range between $50,000-5,000,000, with terms from 10-25 years depending on the purpose of the loan. Also, your loan will be repaid monthly.
It’s worth noting that with any SBA loan, the SBA isn’t actually the lender. They simply connect you with reputable lenders, then guarantee a significant portion of the loan. This incentivizes lenders to work with you, as their risk is greatly diminished.
If you have any questions about an SBA loan, your dedicated loan specialist will be happy to help.