Advantages of an SBA Loan

Small businesses often have difficulties qualifying for the loan amounts they need. The SBA encourages banks to loan money to these businesses by guaranteeing loans. Should the loan default, the SBA reimburses 75-80% of the loan amount to the bank. In return, banks are willing to lend money to businesses that would otherwise be turned down.

In addition to having more relaxed qualifications, SBA loans typically offer longer terms than most conventional loans. So, small business clients can improve their cash flows and retain more working capital. What's more, since the focus of the loan is on the cash flow of your business rather than collateral, clients can usually qualify for higher loan amounts through the SBA loan program.

SBA loans can be used for almost any financing need, including:

Cash Reserves

Inventory

Equipment & Furniture

Purchasing an Existing Business

Purchasing Commercial Real Estate

Tenant Improvements

Refinancing Unreasonable Debt

Eligibility


While most small businesses are eligible for SBA loans, the following guidelines apply to each industry:

Retail & Service: Up to $5 million in sales

Construction:

Subcontractors Up to $7 million/yr.

Gen. Contractors Up To $17 million/yr.

Manufacturing Up to 500 employees

Wholesalers Up to 100 employees

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