An SBA business loan, also known as an administration-backed loan, can provide your company with the working capital needed to achieve any objective, including growing, buying, or renovating equipment, acquiring new real estate, refinancing an existing mortgage or contract, and more.
Different SBA Loan Types
There are several different types of Small Business Administration loans, and each one offers borrowers a special set of advantages. The SBA offers the following three primary loan types:
SBA 7(a) Loans
The SBA's most popular loan program is 7(a) loans. It offers finance of up to $5 million with repayment durations of up to 25 years for various business uses, such as working capital, equipment purchases, construction/renovation, and other growth initiatives.
Loans under SBA 504
SBA 504 loans are limited in their use, which is to promote business growth and job creation, which includes the purchase/construction/improvement of the following:
- New infrastructure
- Pre-existing facilities
- Pre-existing structures
- Long-term machinery and equipment
- Streets, parking lots, utilities, land, and landscaping
Loans under SBA 504 cannot be used for working capital, inventory, debt refinancing, or real estate investment or speculation.
SBA Microloans
Under the SBA's microloan program, eligible borrowers can receive up to $50,000 in funding. You can use a microloan for any other business purpose, such as working capital, equipment, payroll expenditures, and much more. Still, you cannot use the money for real estate purchases or to settle outstanding debts.
For more information, please submit the Online Form.
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