Jan 18, 2022
U.S. Small Business Administration motivates small businesses by helping them meet their financing needs through some flexible financing options - SBA Loans or Small Business Loans. SBA Financing options are available for almost any small business across industries with low-interest rates and longer and flexible terms to meet their specific requirements and goals. SBA Loans are partially guaranteed by the government that makes them a great way to finance a business at lower risks.
SBA Financing can help small businesses and entrepreneurs cover startup costs, expansion costs, asset purchase, and much more. This type of financing is backed by the federal government and issued by participating lenders. There are multiple types of Small-Business Loans to help businesses depending on how they plan to use the funding for. Each SBA loan has its own terms and conditions, and the best loan option for you depends on your purpose of financing.
SBA 7(A) Loans: The loan size is up to $5.5 million and can be used for expansion, equipment purchase, and as working capital.
SBA Express Loans: Small businesses can get up to $500,000 to finance their business through fast funding for working capital, expansion, real estate purchase, and equipment purchase.
SBA 504 Loans: The loan size is up to $5.5 million and can be used for long-term purchases of assets, facilities, lands, and machinery.
SBA Microloans: You can get up to $50,000 SBA financing for working capital and cover cost of supplies, inventory, equipment, and machinery.
SBA Disaster Loans: These loans are used to cover the costs of physical damage repair and restoration due to a declared disaster. Businesses can get up to $2 million to get back on track after a disaster.
SBA Community Advantage Loans: The loan size is up to $250,000 and can only be used for normal business purposes. They cannot be used for revolving credit.
SBA Export Working Capital Loans: These loans are available for businesses involved in export and trading. They can getup to $5 million to support their export sale.
SBA Export Express Loans: If you want to enhance the export development of your business, it is an ideal SBA financing option for you. you can get up to $500,000 to support your needs.
SBA International Trade Loans: The loan size is up to $5million to support international trading. It can be used as long-term funding to modernize and expand export sales.
A small business can apply for SBA Loan through participating lending institutions like credit unions and banks. Your business must fulfill minimum requirements to qualify for SBA financing. Take a look at the bottom line of your business operations and where it is lacking to decide on which SBA Loan type best meets your requirements.