Loan Amounts: $250,000 – $5,000,000
Loan Terms: 10 – 25 Years
Interest Rates: Varies
Time: As Fast As 7 Days
SBA loans are part of a program created by the U.S. Small Business Administration. However, the difference between an SBA and other loans is that it’s a guarantee from banks and certified lenders. This means the SBA doesn’t actually give you money. Rather, they determine guidelines for lenders and guarantee applicants up to 85% of the loan. This way, the lenders remain protected from potential defaults and it allows for them to provide funding for entrepreneurs with very little risk. The 7(a) Loan Program is pretty flexible for your entrepreneurial needs. However, the primary uses include: refinancing existing property, purchase new property, revolving funds, equipment purchases, working capital, and the purchase of real estate. You can receive upwards of $5 million in guaranteed financing and applications are processed through banks, certified lenders, and credit unions. The CDC/504 Loan Program is primarily used for project funding. When your loan is approved, you’ll receive 50% of the money from the bank and 40% of it from a Certified Development Corporation (CDC). In this instance, project funding means fixed assets including: buying equipment, buildings, land, building or renovating new/existing facilities, landscaping, and debt refinancing due to renovations or improvements upwards of $5 million. Want access to our favorite SBA lender for both types of loans?