It is comforting to know that the federal government wants to see that small businesses can flourish. One of the ways that they do this is through the Small Business Association (SBA) and the SBA loans that it provides.
The SBA: Help for Small Businesses
Founded in 1953, the SBA provides loans and well business counseling, and contracting expertise to small businesses of all shapes and sizes. SBA loans come with low-interest rates, making them a great option for entrepreneurs just starting. Get an SBA loan through a participating lender. The SBA guarantees the loan, which greatly reduces the risk to the lender. As a result, they can be easier to obtain than other types of loans.
Types of SBA Loans
Some of the most popular loans offered with an SBA guarantee are:
SBA 7(a) Loans.
These are the most popular of the SBA loan types. Covering a wide variety of needs such as new construction, renovation, property purchase, equipment, infusion of working capital, and more. They are offered in amounts of up to $5,000,000.
SBA Express Loans.
These are designed for fast approval; quickly putting needed funds in the hand of small business owners. They have recently garnered lots of attention and rival the 7 (a) loans in popularity. Loans of up to $500,000 are available.
SBA 504 Loans.
These loans are specifically designed to enable businesses to acquire fixed assets for expansion or modernization. Repayment periods are generous, up to 25 years in some cases. Like 7(a) loans, the maximum amount that can be borrowed is $5,000,000.
SBA Microloans.
Microloans up to $50,000 are offered through the SBA. They are made by non-profit, community-based organizations. They can be used for a wide variety of business needs, including refinancing.
In addition, the SBA offers disaster loans, loans for international trade, and for businesses that export abroad.
Contact Rexford Capital
If you are interested in obtaining an SBA loan, Rexford Capital can help. Give them a call today.
By Rexford Commercial Capital