Maximum Loan Amount
$5,000 – $ 5 Million
5 – 25 years
6 – 13%
As little as 2 weeks with preferred SBA lenders
Once you find a band that participates in the SBA financing program, you will start a lengthy paperwork process of applications and verifications.
You will need financial statements including proof of your credit and collateral as well as your business plan and ability to make payments. This process can take anywhere from thirty days to several months, so be patient when going this route.
Once you have decided to go with an SBA loan, you will need to choose which type of loan best meets your needs. The 7(a) loan is the most widely selected because of its flexibility in use. This type of loan can be used for the majority of your business needs and doesn’t require a fixed or specified purpose.
If you are looking to make larger equipment purchases or to buy real estate, then the CDC/504 loan may be a better option for you.
Whichever option you choose, be sure to have all of your documentation ready when contacting a lender.
With reasonable interest rates ranging from 6-13%, SBA loans are an attractive option to many small business owners. Depending on the type of SBA loan you choose, you could have fixed or variable interest rate. Keep in mind that individual lenders have the option of adding an additional spread to the base rate of the loan when figuring your final rate with a maximum increase of 2.75%.Both the 7(a) and 504 loans have fees that can be included in the total cost of the loan.
A loan through the Microloan Program does not have fees but has a much lower cap on the total loan amount. Repayment on SBA loans ranges from 5-25 years depending on the amount and purpose of the loan.
Chat with with an experienced funding specialist at 619-795-3123. It’s toll and obligation free!