With an SBA loan, your business can take advantage of longer repayment terms and higher borrowing limits. Qualifying criteria are generally more flexible than conventional loans.
Can you use an SBA loan?
If you have a growing business, SBA financing can help you to:
- Purchase or renovate real estate.
- Purchase or upgrade real estate to operate your business, construct a business facility, or make improvements to an owner-occupied property.
- Purchase fixed assets. Includes assets such as heavy machinery or specialized equipment.
- Borrow working capital. Manage day-to-day cash flow and purchases.
SBA loans provide many advantages:
SBA loans are typically easier to qualify for than conventional business loans.
- Longer repayment terms provide lower monthly payments.
- You can borrow up to 90% of the collateral’s value.
- Any applicable fees may be financed directly into the loan.
SBA 7(a) can provide funds for a variety of business purposes. Up to $5,000,000 can be used to fund equipment purchases, business acquisitions or expansion, finance permanent working capital, or purchase real estate.
Interest Rate: Fixed rates are available for up to seven years. Variable rates are indexed to the Wall Street Journal Prime rate plus a margin.
Repayment Terms : Working capital loans – up to 7 years. Equipment loans – up to 10 years. Real estate loans – up to 25 years.
These loan proceeds can be used to purchase real estate or equipment. The SBA 504 Loan Program is generally designated for projects over $500,000.
Interest Rate: Fixed or variable rates are available depending upon the term of loan.
Repayment Terms : Terms are typically from 10 to 20 years.
Fees : SBA fees, packaging fees, or origination fees may apply and will vary based upon the type and the term of the loan.