If you own a business in California and are looking to grow, an SBA loan might be the answer!
Loans guaranteed by the Small Business Administration (SBA) offer favorable terms to qualified borrowers.
Since 2012, Business Funding Group has leveraged decades of finance experience to help companies get the government-backed loans they need to thrive.
If you are interested in a California SBA loan, let our team help determine your eligibility and guide you through the process.
There are many loan options available for companies throughout the State of California, so why choose an SBA loan?
Securing financing for companies can be challenging, that is why the SBA loan programs were created.
A Californian business owner might not be able to get a traditional bank loan at all or get the amount they need to grow their business. Instead of going to an expensive non-bank lender, SBA might be right for you.
SBA loans come with friendly terms. They have little to no pre-payment penalties and have limited covenants and conditions.
To qualify you as the business owner, need to have a reasonable credit score and credit history, be a US citizen or green card holder and the business needs to be organized in the US. You, personally and the business, also need to be able to pay the loan back through the business cash flow.
Business Funding Group can help you determine if an SBA loan is right for your California business.
Not all SBA loan programs are the same. Companies have different options to choose from depending on their needs, there is the 7a loan and the 504.
The decision comes down to what it is your business need the money for. 7a loans can be used for both working capital and owner-occupied real estate but max out at 5M, whereas the 504 loans can only be used to purchase real estate and fixed assets for your business and max out at 14M+.
The 504-loan program are mainly for real estate, but if you need machinery or other long-term assets as part of the purchase you can do that as well.
The 504 loans have three components, 10% coming from you, 50% from a lender and 40% from the SBA / CDC.
Under both the 7a and 504 loans the real estate purchases must be for the business and the business needs to occupy at least 51% of the building you are buying.
In addition to buying real estate, equipment and machinery, the SBA 7a loan can be used for general working capital. Some examples:
An application for an SBA loan works as a decision tree, where for example, if you want to use the money for one purpose you follow one path, another purpose follows another path.
That’s where Business Funding Group comes in, with decades of experience and through assisting companies in California through the process we are uniquely positioned to guide you through this process.
BFG stays with you through the whole application, ensuring a successful outcome for you and your business.
With our extensive experience with California SBA loans, we can typically qualify you for a loan through a 10–15-minute phone call, saving you a lot of time and effort – call us today!
We are dedicated to helping small businesses thrive and look forward to the chance to put our experience to good use.
(917) 593-5013