SBA LOAN PROGRAMS

Many businesses today have had real problems starting, staying afloat or even growing. In an economy such as the one we are experiencing now you may have a solid business with robust sales and you would normally be able to sustain and grow your business because you offer a product or service that the market wants. The problem with the economy may be a few less buyers for some companies but for the majority the real problem is that the banking and financial institutions have tightened and are not lending. Hence to improve economic growth the government is doing everything possible to help the small to medium businesses in America. We really do not want to focus on the extra things that are temporary. I want to focus on the financial resources offer through SBA that are permanent and can help sustain and grow your business. Three loan programs are offered for companies with different objectives. They are the SBA Mini, 504 or 7a loan programs.

SBA 504 Loan

This is a real estate loan. The proceeds can be used to purchase, renovate, rehab or even construction of your property or under certain conditions refinance the property that you use for your business. The good thing is that the SBA 504 Loan program is a second mortgage for up to 40% of the value of your property while a commercial lender would lend 50% for a total loan of up to 90% of the property value. The rates are fixed for 20 years and lower than most commercial loan rates. So today with an SBA 504 loan you get rates below conforming / agency commercial rates, fixed rates, and higher loan to values. Their is no real estate loan that competes with the SBA 504 program today. So if you operate your business out of a property you own, then it is considered owner occupied if you occupy at least 50% of the square footage. In that case you would want to seriously consider an SBA 504 real estate loan to finance your property.

Small Business Financing

Whatever your financing needs are, if you have good credit and the verifiable means to repay the loan (sometimes not) we have a program for you.