The SBA 7(a) loan program provides a flexible solution for growing businesses to fuel their growth. With a wide range of loan proceeds and loans up to $5 million, the SBA 7(a) loan program might be an excellent option for your business.
At Business Funding Group (BFG) we allow you to focus your business while we work on your loan! We are one of the largest packagers of SBA loans in the United States. We will help you every step of the way. We assist in filling out the application, helping you collect the necessary documentation, maximize the loan you qualify for, and get it funded in the fastest period of time.
We stay with you until the loan is fully funded!
We never ask for a retainer and only receive a fee when the loan is funded. Because of this fact, our interest is totally aligned with you.
Contact us about an SBA 7(a) loan today.
The Small Business Administration is a government agency that helps companies start, grow, and expand. The agency is heavily involved in education and training for business owners, both first timers and experienced CEOs.
The SBA does not directly finance business loans. Instead, they guarantee a portion of these loans to a certified lender if the borrower defaults. The guarantee that the SBA provides to its lenders are complicated and subject to many rules, which BFG fully understands and can help you navigate to obtain the best loan for your business.
Typically, businesses under 5 years or in new cutting-edge industries have difficulties obtaining traditional bank loans. The SBA loan guarantee that the banks receive can make a huge difference in obtaining a loan. This is the principal purpose of an SBA loan, to help you obtain a loan you would otherwise not receive.
There are different types of SBA loans available. In addition to the 7(a) program, there are also 504 loans to consider. The primary difference between these two options is how the money can be spent.
504 loans can only be used for real estate transactions. This could include the purchase of a new building or an expansion of an existing facility.
7(a) loans can both be used for real estate and/or working capital. The loan can be used for any legitimate business purchases, such as:
The flexibility of 7(a) loans makes them an excellent choice for businesses looking to address various financial needs beyond (or including) real estate.
Under the 7(a) program, we are able to structure loans that allows you to both buy a building and get working capital as a 25-year repayment. Working capital alone is a 10-year term.
Purchasing real estate under both the SBA 7(a) and 504 programs must be owner occupied, i.e. the operating business must occupy at least 51% of the building they are buying.
Understanding the benefits of SBA 7(a) loans can help you make an informed decision for your business. Below are key features that make this loan program an attractive option:
Learn more about these benefits and basic loan terms here.
There are a lot of rules and regulations associated with obtaining an SBA 7(a) loan, and as a packager with over 70 years of collective experience we know them all and have extensive experience navigating our clients through the system.
To be eligible for any SBA loans the business needs to be organized for profit, operate in the US and not in an industry determined to be ineligible. Ineligible industries include, but not limited to, businesses involved in matters not legal federally (ex. Gambling and cannabis), financial and investment activates (ex. A bank), etc.
Qualifying for an SBA loan through one of our lenders can be summarized by (1) will the business and business owners pay back the loan and (2) the ability to repay.
Learn more about the requirements that must be met to qualify for an SBA loan here.
Are you looking to expand and grow your business? An SBA 7(a) loan might be right for you!
Talk to one of our experts today to see if this program fits your needs
(917) 593-5013