Last month we explored the types of loans available to businesses (read here). Now we explore the benefits of SBA loans.
SBA loans are partially guaranteed by The U.S. Small Business Administration. They offer a variety of loan programs for very specific purposes, from Small Business loans and Microloans to Real Estate & Equipment loans and Disaster loans.
Depending on where you are with your business, and if you fulfill their criteria, you can borrow money from the SBA for a number of different reasons. These include:
- Purchase of real estate
- Building renovation
- Equipment purchase
- Inventory purchase
- Business acquisition
- Expansion of an existing business
- Business startup
- Refinancing of an existing debt; or
- Supply working capital
SBA loans typically have lower interest rates and fees than the more conventional loans from big banks and other financial institutions. Longer repayment terms can also be negotiated, with the interest rate fixed for a predetermined period of time.
However, you will still need a solid business plan to get a loan from the SBA, so be prepared before you apply. Can we help? Contact us at Checkbox.
Next month we take a look at the benefits of buying vs leasing business assets. Stay tuned!