SBA Loan Programs for Small Businesses
Starting or growing a small business can come with many financial challenges. For this reason, the Small Business Administration provides a wide range of SBA loan programs to help small business owners succeed. SBA financing tends to be more accessible for small business owners and it comes with benefits such as low-interest rates and long repayment periods. Whether you are starting, acquiring, or expanding a small business, consider obtaining an SBA loan.
There are several SBA loan programs available. Each program is designed for different scenarios and purposes. From financing equipment to covering flood damage repair costs, there is likely an SBA loan program for you. In this article, we discuss various SBA loan programs. To learn more about obtaining an SBA loan, see How to Obtain an SBA Loan.
If you are looking to connect with a reputable SBA lender, Peak Business Valuation is here to help! Peak Business Valuation is a professional business appraiser. At Peak, we work with dozens of quality SBA lenders across the country. Get started with your SBA loan by scheduling a free consultation with Peak Business Valuation today!
Types of SBA Loan Programs
The SBA offers several loan programs to help business owners like you. The main SBA loans are:
SBA 7(a) Loans
This is the most common SBA loan program. For SBA 7(a) loans, you can borrow up to $5 million dollars! You can use SBA 7(a) loans for various purposes. This includes equipment purchases, real estate acquisition, and business acquisition. SBA 7(a) financing is guaranteed by the Small Business Administration and has long repayment periods with low-interest rates. Peak Business Valuation commonly provides SBA business valuations for SBA 7(a) loans.
SBA 504 Loans
The SBA 504 loan program offers up to $5.5 million dollars to small business owners like you! This loan program provides long repayment terms and fixed-rate financing. SBA 504 loans are often used for purchasing real estate and other fixed assets.
SBA Microloans
An SBA microloan can help you purchase the necessary assets to start or expand your small business. This can include equipment, inventory, supplies, and other working capital. You can borrow up to $50,000 dollars with the SBA microloan program. SBA microloans have a maximum repayment period of 6 years. They typically have higher interest rates compared to other SBA loan programs. However, SBA microloans are still a great option for small businesses.
Other SBA Loan Programs for Small Businesses
SBA Disaster Loans
This SBA loan program provides financial assistance to small businesses that suffer from disasters like hurricanes and wildfires.
SBA Express Loans
Express loans provide expedited financing to small businesses that need capital quickly. They offer up to $500,000 dollars in funding and are backed by a 50 percent SBA guarantee.
SBA Export Loans
These SBA loans help small businesses finance their export activities. You can use SBA export loans for things like marketing, inventory, and working capital.
SBA CAPLines
The SBA CAPLines program helps small businesses manage their short-term and seasonal expenses. Small businesses can borrow up to $5 million dollars with the SBA CAPLines program.
SBA Surety Bonds
The SBA Surety Bonds program helps small businesses obtain government contracts. This bond guarantees that your small business will fulfill its obligations according to the contract.
SBA Community Advantage Loans
SBA Community Advantage Loans provide financial assistance to small businesses in low-income communities. Small businesses can borrow up to $250,000 dollars with a 75 percent SBA guarantee. This is one of the best SBA loan programs for rural businesses.
SBA 8(a) Business Development Program
This SBA loan program helps business owners who are socially and economically disadvantaged. Support from the SBA 8(a) development program can come in the form of business development assistance, mentoring, etc.
SBA Veteran Advantage Loans
SBA Veteran Advantage Loans are designed for veterans who are starting or growing a small business. Business owners can borrow various amounts of money through this loan program and will receive a partial SBA guarantee. They can also receive business development assistance and mentoring.
Selecting an SBA Loan for Your Small Business
If you are looking to start, acquire, or expand a small business, SBA financing can help. There are many different SBA loan programs available. Each SBA loan is designed for a different purpose. Whether you need help financing start-up costs, equipment expenses, or real estate expenses, consider obtaining an SBA loan.
Peak Business Valuation is happy to help you prepare for the SBA loan application process. Peak can help you understand how to increase the value of your small business. Doing so increases your chances of obtaining SBA financing. Schedule a free consultation with Peak Business Valuation today!
Do You Qualify for an SBA Loan?
To qualify for an SBA loan for a small business, you must answer “yes” to the following questions:
- Are you a legally operating, for-profit business?
- Does your small business operate in the United States or a U.S. territory?
- Have you invested equity in your small business?
- Are you unable to meet your financial obligations without an SBA loan?
If you answer yes to all these questions, you may be eligible to obtain an SBA loan for a small business! Start by scheduling a free consultation with Peak Business Valuation today!
Summary
There are several SBA loan programs that may benefit your small business. These loan programs vary in purpose and the amount of money that can be borrowed. Whether you are starting, acquiring, or expanding a small business, it is important to understand which SBA loan program is best for your small business. As such, it is important to connect with a reputable SBA lender that can help you with your small business needs.
Peak Business Valuation, business appraiser, works with over 80 SBA lenders nationwide. We are happy to help you receive an SBA loan by connecting you with a quality SBA lender. Start now by scheduling a free consultation with Peak Business Valuation, business appraiser.
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