A Guide to Popular SBA Loan Options

Running a small business is a very involved process. To keep your company headed in the right direction, it can be beneficial for you to take time to research what options are available to you. For many business owners, the answer is taking out a loan. While traditional loans might seem the most sensible fit, there are actually more in-depth solutions available. SBA loans are structured to specifically meet the needs of smaller establishments. Look over these details to learn more about the options available to you and see how you can apply for this financial solution.

The Basics

First, it is important to understand exactly what this type of loan involves. This financing option is provided through the Small Business Administration, an organization dedicated to stimulating growth in communities by supplying smaller businesses with the funds required to get started. The organization works with third-party lenders all over the country. In order for you to apply for this type of loan, you first need to research what lenders in your area are affiliated with the Small Business Administration and learn about the requirements set forth by the specific establishment.

Different Loan Options

An important detail to note about SBA loans is that there are a number of different options available to you. The most common is the SBA 7(a) Loan. Benefits to this option include a term of up to 25 years, the ability to borrow up to $5 million, and fixed interest rates. Another popular option is the SBA Express 7(a) Loan, which offers the same options as the SBA 7(a) with a lower amount available to borrow. A CDC 504 Loan can be useful to cover expenses unrelated to property investments.

Selecting the Best Fit

Before you can take advantage of what loans from the Small Business Administration can offer, you need to think about which loan option is the most sensible fit. While all of these financing solutions aim to help businesses expand, each will provide different benefits based on the structure of your establishment. If you need a lot of money to cover the investment in a new office space, for example, an SBA 7(a) loan is probably your best bet. Learn the details of each option and weigh out the pros and cons to determine which is the best suited for you.

There are plenty of ways to pull your business out of a financial bind. SBA loans are a wonderful financing solution for qualifying companies. Take time to find a lender near you and determine whether or not you are eligible for this option.


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