What is an SBA Loan?

      SBA (Small Business Administration) loans are for those looking to start, grow, and keep their business going.  They help us live the american dream of managing a successful business.  SBA loans are government guaranteed loans for business owners.  Meaning that a bank loans you money and if you meet the SBA's criteria, they will back your loan up to 85% if you default.  This is great news for the lender and encourages them to want to make a loan for you.  Funds can be used for working capital, real estate, or equipment; purchase or refinance.  SBA loans are great for all businesses offering long terms and great rates with flexibility toward the collateral backing the loan.  Where is the downside?  Generally, they come at  a price; effort.  SBA loans take quite a bit of time (2-3months) and lots of paperwork.  They are generally worth it if you can survive to process.  There is more generosity when it comes qualifying so many business owners don't have another choice.  Not all SBA lenders are created equal either.  Just because one bank won't make the loan for you under the SBA program, doesn't mean another won't.  Check with us to see if you qualify.  I will also make another post soon on the general qualifications of an SBA loan to see if you meet them.