New York SBA Loans

Loans guaranteed by the Small Business Administration (SBA) can represent one of the best opportunities to grow your business, purchase real estate for your business or acquire a company.

If you are considering a New York SBA loan, now is the time to ask for help!

The process can be complex, so partnering with a company like Business Funding Group can help guide you through the process

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. One of the biggest headaches for our clients trying to get an SBA loan on their own is that they do not get adequate support during the application process which leads to unsatisfactory results.

Can Any Business Qualify for an SBA Loan?

There are limitations on the businesses that can qualify for an SBA loan in New York.

Determining if a company meets all the standards can be challenging.

The main factors to qualifying are:

• Creditworthiness: Lenders look at credit scores and history over the owners who have at least a 20 percent stake in the business. The absence of past credit issues, such as prior bankruptcies or judgments is important.
• Ability to repay: Lenders look at the amount of cash generated by a business annually and evaluate if it is enough to cover operating costs and living expenses. This evaluation is largely based on tax returns from the previous year in addition to current balance sheets.

Since the SBA loans are a federal program, the industries have to be legal federally, not by state, therefore certain industries, such as gambling or cannabis are not eligible for SBA loans

Why Small Business Loans?

There are several ways that small business loans are more beneficial than traditional lending options for New York business owners. Often, they are more accessible and include favorable terms that companies cannot find anywhere else.

Some of those benefits include:

Repayment Terms

One reason why SBA is so popular is because they are often longer terms than traditional bank loans. The maximum length of the loan depends in part on its purpose.

Working capital loans, which can be used for any business expenses, are paid off over 10-years, and the real estate loans are over 25 years.

Flexible Use of Proceeds

The SBA 7a working capital loans can be used for any business-related expenses, with less covenants than other loans – leaving you, the business owner, in control over how you utilize the funds.

In addition, under the 7a program we are able to structure loans for both real estate and working capital over the 25-year period, as long as half the money is for the real estate and that your business cash flows.

Call Today to Discuss an SBA Loan in New York

If you as a New York business owner are looking for financing, SBA might be the answer!

They offer businesses excellent terms that are difficult to find anywhere else. Not everyone qualifies, making it important to work with professionals who can help you get the loan you need.

Our team at Business Funding Group have helped countless businesses located in New York get SBA loans. Call today to learn how we can help your business!