SBA loan program
SBA loan programs are some of the best loan programs available to small businesses that are looking for ways to get financing. SBA loan programs vary from disaster relief loans, to refinancing programs, and everything in between. The SBA looks for ways to encourage community and economic growth, and set up specific programs with specific purposes to help address very specific financing needs. Here are a few SBA loan programs, who they serve, and what they do.
1. SBA 7(a) Loan Programs
The SBA loans that fit under the 7 (a) title are the most common loan programs. They address the needs of businesses with special requirements. 7 (a) loans are for businesses in exports, businesses in underserved rural communities, for service men and women, etc. The funds for 7 (a) program loans can be used to start a new business, buy an existing business, or expand your existing business.You can learn all about the 7 (a) loans, and whether or not you qualify for them, or meet eligibility requirements by visiting the SBA.gov website. Each loan program that falls under 7 (a) are spelled out in exactitude, and applications are provided online, for quick and easy use.
2. CDC/504 Loan Programs
The 504 loan programs are used for long-term financing, and fit with the SBA goal of encouraging economic development and job growth. The 504 loan programs and CDC loan programs help business acquire major fixed assets, such as land, buildings, and machinery. They also help to expand or modernize a business. The most recent 504 loan program was one set up to refinance existing commercial mortgages with secure, long-term, finance options, in order to restructure debt, and make payments easier to handle so that commercial real estate purchased before the recession does not fall under foreclosure, or ruin a business.
3. Microloan Programs
These loan programs help businesses obtain commercial loans with good terms, short-term loans for specific business concerns, and not-for-profit child care centers.The Microloan programs provide funding that allow you to use loans for working capital, to buy inventory, to purchase supplies, to purchase furniture, to purchase equipment, and other items needed to run your business.
All SBA loans are funded by third party lenders, or partners to the SBA. Of course, the SBA structures these loans, and sets eligibility requirements to reduce the risks on these loans. By doing so, they are able to guarantee the loans they structure up to a certain percentage, and in some cases 100%. By doing this, they provide lenders with less risk, and thus encourage economic development and job creation by helping small businesses obtain the funding they need to succeed in their marketplace. In addition to encouraging commercial lenders to make more loans, the SBA simplifies the application process, and makes obtaining loans more affordable for borrowers, through fewer fees, and lower interest rates.