SBA Business Traditional
SBA Business Traditional
A Small Business Administration (SBA) loan is a type of government-guaranteed loan that is provided to small businesses to finance the purchase, expansion, or renovation of commercial properties. These loans are offered through participating SBA-approved lenders, such as banks and credit unions, and are backed by the SBA, which reduces the risk for the lender and makes it easier for small businesses to qualify for financing.
SBA traditional loans come in different forms, the most common being:
-
SBA 7(a) loan: This is the most popular SBA loan program, and can be used to finance a wide range of small business needs, including the purchase or renovation of commercial properties. The loan can go up to $5 million, with a repayment term of up to 25 years.
-
SBA 504 loan: This loan program is specifically designed to help small businesses purchase or improve owner-occupied commercial properties. The loan can go up to $5.5 million, with a repayment term of up to 20 years.
-
SBA Microloan: These are small loans, with a maximum of $50,000, that are intended for very small businesses or start-ups, and can be used to purchase or renovate commercial properties.
To qualify for an SBA loan, borrowers generally need to meet the SBA’s size standards, which vary by industry, and demonstrate that they have a viable business plan and the ability to repay the loan. They also need to provide documentation of the income and expenses of the business, and an appraisal of the property will be done.
SBA loans typically have more favorable terms than traditional commercial loans, such as lower down payments, longer repayment terms, and lower interest rates. They also have more flexible guidelines, which makes it easier for small businesses to qualify for financing. However, the application process can be lengthy and the approval process can be competitive.
The Better Choice lenders help clients with their business financing and capital needs. IF you have questions or just want to see if we can help – Please use the button below to contact one of our associates.