SBA Loan
SBA Loan

SBA Loan: Long-Term, Low-Rate Financing for Business Growth

The SBA Loan is a government-backed financing option designed to help small businesses access affordable, long-term capital for expansion, working capital, equipment, or other business needs. Ideal for industries such as retail, food & beverage, child care, auto repair, and assisted living, this loan offers extended repayment terms and low interest rates, making it one of the most cost-effective financing solutions available.

Backed by the U.S. Small Business Administration (SBA), the SBA Loan allows businesses to secure large amounts of funding with favorable terms, providing the financial support needed to grow and thrive.

How Does the SBA Loan Work?

The SBA Loan offers two primary programs, each designed to meet different business needs:

  1. SBA 7(a) Loan: Best for working capital, refinancing, or business acquisitions, with repayment terms of up to 10 years.
  2. SBA 504 Loan: Ideal for purchasing commercial real estate, equipment, or long-term capital investments, with repayment terms of up to 25 years.

Once approved, businesses can receive up to $5 million in funding, with rates starting at Prime + 1% to 2.75%, making it one of the most affordable financing options for long-term business investments. Monthly payments are required, and the loan can be repaid early without prepayment penalties.

Unique Benefits of an SBA Loan:

  • High Funding Amounts: Access up to $5 million in capital for business growth, acquisitions, or real estate investments.
  • Long Repayment Terms: SBA 7(a) loans offer 10-year terms, while SBA 504 loans provide terms of up to 25 years, allowing for manageable monthly payments.
  • Low Interest Rates: Rates start at Prime + 1% to 2.75%, providing an affordable financing solution compared to traditional loans.
  • No Prepayment Penalties: Pay off your loan early without incurring extra fees, allowing you to save on interest.
  • Reports to Business Credit Bureaus: Build your business credit by making timely payments, helping your business qualify for better terms in the future.

Qualifications for an SBA Loan:

  • 2 years in business: Your business needs to have been operational for at least two years.
  • 660+ FICO: A good credit score is typically required for approval.
  • $40,000 deposited monthly: Your business should deposit at least $40,000 into its bank account each month, or generate $500,000 annually.
  • No bankruptcies, liens, or foreclosures in the last 3 years: Your business needs a clean financial history to qualify.

Advantages for Your Business

  • Affordable Long-Term Financing: With low rates and extended repayment terms, the SBA Loan provides an affordable way to finance major business investments like real estate, equipment, or working capital.
  • Large Loan Amounts: Secure up to $5 million in funding, allowing your business to make significant capital investments or acquisitions.
  • Flexible Use of Funds: Whether you need working capital, real estate, equipment, or business acquisition financing, the SBA Loan offers versatile funding options.
  • Build Business Credit: By making timely payments, you can improve your business credit profile, which may help you secure better financing terms in the future.

With the SBA Loan, you can access affordable, long-term financing to help your business grow and thrive. Whether you’re purchasing real estate, investing in new equipment, or expanding your operations, this government-backed loan offers the capital you need with low rates and extended repayment terms. Apply today to take advantage of this powerful financing option. Apply Now

SBA Loan
SBA Loan