Business Financing Programs
What is an SBA 7(a) Loan?
An SBA loan is a small business loan that is partially guaranteed by the government (the Small Business Administration), which eliminates some of the risk for the financial institution who is issuing the loan. Loans have the best terms and rates but are the hardest to secure.
Established businesses with tax returns that show good revenues and profitability can get large sums of funding with secured, Small Business Association 7 (a) loans. You can be approved for secured government-backed SBA program loans from $250K up to $5,000,000. Under the 7(a) program, Express Loans range from $25K out to $150K and terms range from 3 - 10 years.
SBA 7(a) loans can be used for many purposes including purchasing a new business, partner buy outs, real estate acquisition, and even working capital. SBA will require certain documentation to qualify including business and personal financials, resume and background information, personal and business credit reports, a business plan, bank statements, collateral, and other documentation relevant to the transaction.
Approval amounts will vary based on the collateral their business has and the amount of net profit reflected on their tax returns. The total time to close these loans is about 2-4 months. SBA loans offer some of the longest payback terms available for business financing. You can secure loans for 10, 15, even 20 years with SBA depending on the loan product. Plus, in many cases interest rates are as low as 5-6% on the financing you secure.