?What an SBA Loan Is
SBA Loans are part of a program created by the U.S. Small Business Administration (SBA) in order to help fund entrepreneurs like you. However, the difference between an SBA and other loans is that it’s a guarantee from banks and certified lenders. This means the SBA doesn’t actually give you money. But rather, they determine guidelines for lenders and guarantee applicants up to 85% of the loan. This way, the lenders remain protected from potential defaults and it allows for them to provide funding for entrepreneurs with very little risk.
$250,000 – $5,000,000
10 – 25 Years
6.50% – 8.75%
As Fast As 7 Days
Types Of SBA Loans And Which Ones Are Best For You
For entrepreneurs like you, there are a few types of SBA Loans. The main two are the 7(a) Loan Program and the CDC/504 Loan Program. To help you out, we’ll explain what each of them does.
7(a) Loan Program:
The 7(a) Loan Program is pretty flexible for your entrepreneurial needs. However, the primary uses include: refinancing existing property, purchase new property, revolving funds, equipment purchases, working capital, and the purchase of real estate. You can receive upwards of $5 million in guaranteed financing and applications are processed through banks, certified lenders, and credit unions.