Are you looking for a SBA Loan
SBA Loans online.com is a resource site
designed
to get you the information you require to
get a
SBA Loan. A SBA Loan can be used to start
or finance a small
business.
Need extra business funding?
A SBA or SBA Express Loan may be the type
of financing that you are looking
for to expand your business.
SBA Loan FAQ
What is an SBA Loan?
The U.S. Small Business Administration provides
loan guarantees to banks and other lenders to assist small
businesses. These guarantees reduce the amount of risk
to the lender and thereby increase the amount of money
available to small businesses.
What are the benefits of an SBA loan?
SBA loans are available to a larger group of businesses than conventional bank
loans because of the guarantee that the SBA provides. Because SBA loans can
be for longer terms than conventional loans, monthly payments tend to be smaller.
How long can the loan be for?
SBA loans are usually required to be paid back anywhere from 7 to 25 years,
depending on the purpose of the loan.
SBA Working capital loans typically run from
5 to 7 years.
Loans for business acquisition typically
run for 10 years.
Equipment loans run for the estimated economic
life of the equipment - usually 7 to 10 years.
Real Estate loans for owner-occupied business
property can run from 15 to 25 years.
If your loan is for a blend of these purposes,
the loan term will be weighted accordingly.
What interest rate is used?
Most SBA loans are a variable rate based on the Wall Street Journal Prime Rate
plus a margin that depends upon the size and type of the loan, as well as the
borrower's credit standing. The interest rate for each loan is determined at
the time it is approved by the lender.
Some SBA financing arrangements, such as
the "504" program and the "7(a) Piggyback" program,
are made up of 2 or more loans with different interest
rates.
How much can I borrow?
Most loans range between $100,000 and $1.5 million, but lower and higher amounts
are available.
Can any business get an SBA loan?
There are some limitations, but 98% of American businesses are eligible for
SBA Loan financing.
Am I responsible for the loan?
Yes. All owners of 20% or more of the business
must take full financial responsibility for the loan. In
some instances, personal assets of the owners must be used
to secure the SBA loan.
