Business owners know that it can be challenging to get the capital needed to keep a business healthy. It can be especially difficult for small business owners working with a limited credit history who need to grow beyond their current size or location to stay competitive. However, thanks to the government, small business owners have a major advantage when it comes to borrowing. The Small Business Association (SBA) works with banks to offer loans that are either partially or fully guaranteed by the government. In many cases, without this backing, these loans would not be available to businesses that critically need them.
Take advantage of financing with an SBA 504 Loan, an SBA Express Loan or an SBA 7(a) Loan
If you own a small business and are looking for a loan to help you purchase equipment, expand your office space, build a new facility or obtain working capital – consider these small business loan options:
SBA 7(a) loan program: An SBA 7(a) loan is a great borrowing option for businesses with less established credit histories. This loan may make up to $5,000,000 available to improve cash flow, acquire equipment, purchase real estate or access working capital. SBA 7(a) loans are especially ideal for businesses that operate heavily in the export business, operate in a rural area, are just being established or are undergoing an expansion.
SBA 504 loan program: The SBA 504 loan program provides long-term financing designed to encourage economic development within a community. It helps small businesses finance land and building purchases, make street improvements, acquire parking lots and build new facilities. It cannot, however, be used to access working capital or make payments on existing debts. It is important to note that when borrowing with an SBA 504 loan, you are required to contribute 10% of the funds you are borrowing as equity in the project.
SBA Express loan: The Express Loan makes up to $1,000,000 available to businesses with less established credit histories. If you are looking to expand or renovate your facility, increase productivity with updated equipment or even need access to a line of credit, the SBA Express loan program may be the ideal solution to help you grow your small business.
Obtaining capital simply starts with a phone call to your bank
Applying for an SBA loan is convenient and can be done directly through many banks. Start by calling your preferred financial institution to find out if they are offering Small Business Association lending solutions. A business banking representative should be able to help you identify the borrowing solution that works best for your small business.
This guest post is courtesy of Amber Evanston from Citizens Bank ®