(917) 593-5013With a traditional loan, you directly approach a lender and request financing. If the lender approves, they’ll give you the money. The SBA, on the other hand, serves as a mediator between you and a lender. You’ll work through the SBA to find a potential lender, who will then consider your request.
The kicker is that once you’re approved, the SBA guarantees a sizable portion of the loan, reducing the lender’s risk. Because they know they’ll get paid even if you were to default, lenders are much more willing to be generous with you. The SBA’s incentive means lenders will even compete for your business.
Because SBA loans are so beneficial for borrowers, they’re increasingly popular with entrepreneurs. Securing a loan with monthly payments, fixed interest rates, and generous repayment terms is rare indeed. And the process of paying off an SBA loan builds your credit, which improves your options when you need to pursue additional financing in the future.
What types of businesses are eligible for SBA loans?
Except for the two or three non-eligible types of business for federal funding, like gambling or cannabis companies (companies not legal federally), we can help almost any profitable business in obtaining an SBA loan.
What are the common challenges businesses face when applying for an SBA loan?
You will need to take the time to pull all the documents that are needed for a loan. This might include documents that you haven’t seen for years such as formation documents and things like that. However, we will work with you or your financial professional to get all the right data so we can get the loan accomplished as soon as possible.