An SBA loan is supported by the U.S. Small Business Administration. It allows financial institutions to provide business loans generally with more favorable terms and sometimes more flexible underwriting criteria than conventional loans. For small business owners who may not qualify for a traditional business loan, these loans may be an ideal option.
Applying for an SBA7(a) loan can be completed in as little as 3 weeks but can take longer as SBA 7(a) loan applications require considerable paperwork. The capital obtained from an SBA 7(a) loan can be used for all business purposes including buying equipment or inventory, refinancing existing debt, or opening a new location. The rate is adjustable (WSJ Prime + 2.75% over 10 years) We assist in gathering documents and submitting them to our SBA Funding Source(s).
Since the financing is partially backed by the Small Business Administration, lenders are typically willing to offer a 10 year (120 month) repayment schedule which provides a comfortable payment for the business.
Financing secured through an SBA loan be used for a wide range of business expenses. Everything from buying real estate to consolidating existing debt to a lower interest rate. Debt refinanced through the SBA will typically lower payments, improving cash-flow.
The 10 year term length offered by SBA7(a) loans are usually the longest as compared to traditional financing options. The longer term allows a business owner to secure a lower payment compared to a 3-5 year option through a traditional bank loan. Having a longer repayment period allows the borrow to repay more over the term, thereby increasing the funding amount available to the business.
The Small Business Administration provides a guarantee to the lender for up to 85% of the total loan amount. This mitigates the risk for lenders to lend you the working capital needed.
Note: These are general loan qualification. Other information might be considered during application time.
Arise Business Finance Solutions
10425 Tierrasanta Blvd. #202
San Diego, CA 92124