SBA is considered to be your small business ally. SBA is agency which is their for the help of small businesses to get their funds whenever there is any economic difficulties.
Small Business Administration
The SBA loans are from the small business administration which is guaranteed by them and are the business loans. It lends you money for any business such as working capital, buying real estate, purchasing of inventory or equipment. All this with help of SBA loans.
Few of the common SBA loans are 7(a), 504 and SBA Express. All these SBA loans helps your business in covering almost every need of your business.
SBA 7(a) Loan
Major options which get covered in SBA 7(a) loan are purchase of land, expansion of the business, buying of the existing business, purchase of the machines, equipments, material and supplies.
SBA 504 Loan
They are little complicated. It is used to finance the fixed assets and few of the soft costs gets included too. Few of the things that come under SBA 504 loan are purchase of existing building, purchase of long term machines, purchase of land or making few changed in the existing land.
SBA Express Loan
This loan provides the cash in jiffy. It usually takes around 36 hours for the reviewing of an application which is very less time as compared to others. Though funding takes around 30 days.
Few of the major benefits it has is down payments are quite low, is quite suitable for wide businesses, and its interest rates are reasonable when compared to others.
Qualification For SBA Loan
Both new and small business can qualify for the SBA loan. The major thing which is scene is your credit score and business owners with good credit score get the SBA loan easily.
It comes with quite a less down payment as compared to others which is around 10%.
Loan Interest Rate
Interest rates for the SBA are low in the business. As it is based on prime rate, as its rate changes when there is a slight move in the needle of Federal Reserve. This process is quick, efficient and manageable.
Small Business Ally
Establishes the guidelines for loans
After the guidelines it guarantees small portion of loan
Always available whenever business is in need.
Helps in refinancing your existing debt
Even handles your construction costs
It improves as well as build your credit.
Qualifying For The loan
They are easier to get as compared to your other bank loan. Requires much of paper work but because of Covid there has been a little relaxation in the requirements just so it reaches it many of the small business owners. If you have the credit score then it gets easier to qualifies the SBA loan along with that it even builds your more credit score which helps you in future if you need more financing.
Applying For SBA Loan
The documents required for the application which increase the speed for the approval of the loan are
- Business tax return of two years
- Personal tax return of two years
- Debt schedule
- YTD balance sheet
- YTD P/L statement
It’s All possible With Financing Compass
Who Qualifies For SBA Loan?
New businesses as well as small businesses can qualify for the SBA loan. You just require good credit score for it which should be 680 or higher.
Is It Hard To Get?
They are easy to qualify as compare to traditional loans from banks. It just looks for strong credit score. They are easy but the application process takes the limited amount of time.
Amount Of Down Payment?
The expectation for the down payment from SBA loan is low which is around 10%.
What Our Clients Say?
Here are few reviews and comments from our clients.
The Financing Compass worked extensively with me to help me anticipate some of the issues that my business may face. Not many lenders would go to that length. They’ve been extremely supportive and a great resource.
Financing Compass enabled me to take advantage of an incredible opportunity to relocate and expand my business, at a pivotal time. The support I received from Financing Compass staff was priceless.
Working with Financing Compass helped me develop my business plan, ideas, and brand before getting started so that I was prepared to open a successful business when I received my loan.
Are You Looking For Our Services?
If you want SBA loans to start your business you can contact us. We will provide you with the best service that will benefit your business.