SBA loans and long term funding

Get your business started with loans guaranteed by the Small Business Administration.

The SBA partnered with lenders to give loans to small and well-established businesses. The agency doesn’t give the loan directly to small business owners but it serves as a regulating body for loans made by its registered lenders, micro-lending institutions, and community development organizations. The SBA lessens the risk for financial institutions, making it easier for them to access capital and that also means it’s easier for small businesses to get loans. SBA’s most common loan program

7(a) loan

The 7(a) Loan Program is the SBA’s most common loan program, it covers financial help for small businesses with special requirements. This is the best option when business purchase includes real estate but it can also be used for:

• Short- and long-term working capital

• Financing the current business debt

• Additional equipment and manpower

$5 million is the maximum loan amount for a 7(a) loan. The eligibility factors include the nature of the business, how your business must be to receive its income, credit history, and where the business is located. Your lender will assist you on which type of loan is best suited for your business needs.

504 loan

504 Loan is a long-term and fixed rate financing up to $5 million for major fixed assets that promote business expansion and job creation.

To be eligible, your business must:

• A for-profit company that operates in the United States

• Have a solid net worth of less than $15 million

• Average net income of less than $5 million after federal income taxes for the two years before your application.

Other general eligibility standards include having a practical business plan, competent management expertise, good character and the capacity to pay off the loan. Nonprofit, passive, or untested activities are not qualified for this loan. Each intermediary lender has its own lending and credit requirements. Generally, intermediaries require some type of collateral as well as the personal guarantee of the business owner. Microloan

The microloan program loans up to $50,000 to help small businesses and non-profit child care establishments start up and expand. The average loan is about $13,000. The SBA gives the funds to specially selected intermediaries, which are nonprofit community-based organizations with experience in lending and technical assistance. Through these intermediaries, the Microloan program will be given for eligible borrowers.

Eligibility:

Each intermediary lender has its own lending and credit requirements. Most of them require some type of collateral and the personal guarantee of the business owner. Where to get these loans?

If you want to learn more about SBA loan programs in more detail and see if you can qualify any of these. Visit SALS CAPITAL’s website or call 332-334-1077. They are dedicated to help you to get the funding you need for your business. They also have a variety of funding options such as startup funding, working capital, lines of credit or even equipment financing.