Can an SBA Loan Benefit Your Business?
SBA loans are the federal government’s way of encouraging the development and growth of small businesses. The Small Business Administration works with a collection of approved financial institutions, such as banks and credit unions that meet program lending requirements. They set the guidelines for the loans and partially guarantee them. This helps businesses that may not otherwise qualify for a loan get the financing they need. Benefits include:
- Terms up to 25 years
- Fixed and variable rate options
- Up to 90% financing
- No balloon payments
- Smaller down payment than conventional loans
- Available for startups
Unlike traditional funding, a Small Business Loan is approved based on the needs of the organization. As a result, there are several funding options.
- 7(a) loans are the most common funding option. They can be used for anything from buying real estate and equipment to refinancing debt or as working capital.
- 504 loans combine funds from a bank with those from a nonprofit CDC. Funds are used primarily for owner-occupied commercial real estate and heavy equipment. The repayment terms are longer than a traditional loan, with lower interest rates.
- Lines of credit carry the same requirements as an SBA 7(a) loan but are fixed or revolving credit lines. They help small businesses meet seasonal and short-term working capital needs.
- The microloan program lends up to $50,000 for up to six-year repayment terms. This type of funding was created for non-profit or community-based organizations.
- Export assistance loans help small businesses with cash flow solutions for new exporting operations.
- Disaster loans are available for organizations, and small businesses located in areas declared disaster zones rebuild
Depending on the type of property you have, a different funding type may be best for you. These are some of the property types we work with:
- Child care facilities
- Automotive, including car dealerships, repair shops and carwashes
- Veterinary facilities
- Motels and hotels
- Gas stations
- Single-purpose facilities
- Nonconforming properties
At Commercial Capital Lending, LLC, we work with small businesses to help them find the capital they need to grow. Contact us to find out how we can tailor a financing program to meet the needs of your organization.