Small Business Administration (SBA) 7(a) loans offer small businesses an opportunity to finance their business goals. If you are a business owner seeking funds to grow your business, contact Business Funding Group (BFG) to learn more about the SBA loan 7(a) in New York.
Since the SBA is not physically lending you the money, they are giving a partial guarantee on your behalf to a lender, you have to comply with both the SBA criteria and the lender’s. That is why applying for, and securing an SBA loan can be complicated. Working with a company like BFG will ensure you have ample support throughout the entire process.
Securing an SBA loan could be a pivotal step for your small business. Trust our team of professionals to help you determine eligibility, discuss the purpose of the loan, and fill out the application.
Contact us today to find out if the 7(a) loan is right for you.
The SBA has a multitude of criteria to qualify for a loan, but the one lenders focus on the most is:
This is established through your personal credit score and credit history. The minimum credit score lenders like to see is 700, but it depends on what factors are impacting your score.
A credit score of 730 could have marked 20-30 late payments, vs. a credit score of 700 that has 0 late payments but high utilization of credit. In this example, the 700 is actually a better score from a lender’s perspective.
They also look at your history and if you have any liens, judgments, bankruptcy filings or pending litigation(s).
The ability to repay is calculated through debt service coverage ratio, based on your last year filed business and personal tax returns, as well as interim P&L and balance sheets – inclusive of the new SBA loan.
Essentially, the SBA and lender want to know that you can afford the monthly payments on the loan you are applying for.
Other SBA requirements are:
When you work with BFG, we can determine your eligibility over a free call. We are knowledgeable about all program limitations that could disqualify you from securing an SBA loan.
Small businesses in New York can benefit from SBA 7(a) loans in several ways. These loans are more often accessible than traditional lending options and include borrower-friendly rates and terms. BFG works with many of the top 10 New York SBA lenders to help get your loan funded.
One common reason 7(a) loans are so beneficial and popular is the flexible use of funds. Small businesses can use the money for any legitimate business expense without having specific expenditures approved each time they wish to utilize the funds. For example, a business could use the loan for:
These loans often have longer repayment terms than traditional bank loans, such as a repayment period of up to:
The ability to pay off a business loan in 10-25 years with manageable monthly payments makes these loans favorable.
Businesses may also be able to secure financing through SBA loans with little to no down payment. If the loan is used to purchase real estate, the down payment could be as low as 0%.
If you are a business owner looking for a way to finance your business’s expansion, a 7(a) loan could be what you need. These government-backed loans offer flexible financing options for qualifying business owners, helping your business thrive.
Our team at BFG has helped secure SBA 7(a) loans in New York for many owners of profitable companies. Contact us today to learn how we can help you!
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