SBA BUSINESS LOANS When you have a great business idea, your next step is to figure out how to finance it. Small Business Administration loans or SBA are a great way to get the funding you need to start or grow your business. The lending team at Cheddarr helps small businesses find funding so they can get the start they need. Our goal is to provide the business lending solutions you need to succeed. Along with SBA loans, we also provide business lines of credit, startup loans, equipment financing, and more. Learn about our loan types and contact us today to get a quote!
What Is A Small Business Administration Loan?
The Small Business Administration (SBA) is a government agency that offers financial assistance to small businesses. The SBA does not simply lend money directly to the small businesses, but it does guarantee loans made by private lenders. This guarantee makes it much easier for small businesses to get loans from banks and other private lenders. Small Business Administration loans are drafted in straight agreement between lenders and the SBA agencies. Borrowers use these programs when finding lenders for their small businesses. Lenders appreciate the SBA loan programs because it shoulders some of the risk for the lender by directly guaranteeing a portion of the loan amount. Because of that loan guarantee, lenders can offer more flexible payment terms and lower the interest rates than most small businesses would otherwise be able to get.
Types Of SBA Business Loans
The SBA offers different types of loans, each with its own eligibility requirements and terms. The most common type of loan guaranteed by the SBA loan is the 7(a) loan. 7(a) loans are available for different purposes, including working capital, equipment, and real estate. The maximum amount of loan for the 7(a) loan is $5 million. Other types of SBA business loans include: 504 loans – available for the purchase of equipment or real estate. The maximum loan amount for the 504 loan is $5 million. Microloans – small loans of up to $50,000 that are available to start-up businesses and businesses with limited operating history. Disaster loans – available to businesses and homeowners in areas affected by a declared disaster.
How To Qualify For A Small Business Administration Loan?
To qualify for an SBA loan, you must first meet the eligibility requirements of the specific loan program you are interested in. In general, you must be a for-profit business with a limited operating history and have a good credit history. You may also need to provide collateral or put up your personal guarantee.
Benefits Of A Small Business Administration Loan
There are several benefits of getting a small business loan from the SBA. Benefits include: The SBA guarantee makes it easier for you to get a loan from a bank or other lender. The SBA Business loan offers several types of loans, with terms that may be more favorable than those offered by private lenders. The SBA has resources and programs to help you grow your business. You may be able to use the proceeds from a small business loan for any business purpose. If you are thinking of starting or expanding your business, an SBA loan may be a good option for you. For more information on SBA loans and how to qualify, visit the SBA website or contact a team member at Cheddarr.
Eligibility Requirements For SBA Loan
The eligibility requirements for an SBA business loan vary depending on which type of loan you are applying for. In general, you must be a for-profit business with limited operating history and have a good credit history. You also need to be a business that is located and operated in the U.S. or its territories. You may also need to provide collateral or put up your personal guarantee. For more information on specific eligibility requirements, contact a lender at Cheddarr.
Cheddarr is dedicated to helping passionate small business owners secure the loans they need to grow and scale their businesses. Contact us today to find the best loan option for your business!
