If you are looking to grow your existing practice, securing an SBA loan could provide the funding you need!
It takes money to grow a successful law firm, or as the saying goes, “You gotta spend money to make money,” this is especially true for running a law firm where investing in effective marketing strategies is essential to staying competitive in the market and attracting new clients.
As well as investing in marketing, you might need to obtain office space, upgrade technology, hire additional lawyers, paralegals, support staff, and so forth.
Loans backed by the Small Business Administration (SBA) are borrower-friendly, offering terms and conditions that are more flexible than traditional bank loans.
Business Funding Group LLC, is one of the leading companies in the US when it comes to assisting law firms in obtaining SBA-backed loans.
We can help determine your eligibility and guide you through the process. Call us today!
Traditional banks struggle to fully understand contingency law firms, often viewing them as too risky due to the unpredictable ebbs and flows of their cash flow.
As a result, lawyers frequently struggle to (1) secure financing and (2) obtain as much funding as they need to grow their practices.
Our management team has dealt with lawyer financings for over 25 years. We have accomplished more than 1,000 SBA loans, totaling over $1.5 billion for attorneys. We have been able to use this knowledge to educate the banks we work with on the advantages of lending to attorneys.
For many of our clients, we have done multiple rounds of financings, of both SBA and non-SBA loans as they have grown their practice utilizing the proceeds of these loans.
We have had practices go from case inventories of less than a million dollars of net attorney fees to over a billion dollars in less than 2-3 years.
An SBA loan offers beneficial terms like lower interest rates, longer repayment, no balloon payments, and no annual clean ups, etc. Because the government guarantees these loans, there is less risk for lenders, which makes it easier for your businesses to qualify.
There are two different SBA loan programs a business can choose from based on its needs and goals.
If you are interested in buying office space for your practice, whether you have grown out of your current space, are sick of paying rent to a landlord and/or want to start building equity or want to open another location, both the SBA 7a and 504 programs could be right for you.
Both programs offer favorable terms to you as a borrower, depending on your needs.
| 7a | 504 | |
| Borrow | 5M | 20M + |
|
Benefits | You can combine both the purchase of real estate and working capital into one loan. As long as half of the money is for real estate, the loan will be 25 years, compared to regular working capital loans, which are 10 years. This allows us to structure loans with 0% down payments. | Makes larger transactions possible. Compared to 7a’s option of no down payment, you must put down 10% of the project under 504 – but offers slightly better rates and fixed interest rate(s). |
Although there are several ways to finance the growth of your firm, such as using personal funds or securing investments, taking on debt can be a particularly effective option. It allows you to leverage capital for expansion without giving up ownership, providing the flexibility to grow while managing financial risk.
SBA 7a working capital can be used for any legitimate business purposes, most popular with attorneys are:
As you can see, SBA loans can help a law firm owner with a wide range of needs. Buying a new office, hiring staff, marketing, day-to-day expenses, and debt consolidation are just a few examples of costs these loans can help you cover.
SBA loan terms have restrictions. Real estate purchases made with either the 7a or 504 SBA loans must be used for the business, and the business must occupy more than half of the building purchased.
To qualify for an SBA loan, a law firm must:
The SBA loan process can be overwhelming, but we make it easy. We understand which loan program is best for you, based on your business needs and goals. We are dedicated to guiding you through the process so you can obtain the funding you need for your law firm to thrive.
BFG handles the details of the process, working with your firm’s best interest in mind. When you work with BFG, you can expect us to help:
You manage your practice and will manage loans!
SBA loans for law firms can help take a business to the next level!
Let us use our decades of experience to help your law firm grow.
Reach out today for a free 10-15-minute phone call!
(917) 593-5013