SBA Loans for Machine Shops
Machine shops cut raw materials such as aluminum and copper into certain shapes and sizes for downstream clients. According to IBIS World, there are over 17,000 machine shops across the country. Together, these businesses generate over $8 billion in revenue each year. Moving forward, machine shops can expect to benefit from an expanding customer base. This is ideal if you are looking to start, buy, or expand a machine shop. However, machine shops can come with hefty expenses. Thankfully, the Small Business Administration has a variety of loan programs designed to help small business owners succeed. SBA loans for machine shops can make starting, purchasing, or growing a machine shop affordable.
If you are looking to obtain an SBA loan for a machine shop, it is best to work with an experienced SBA lender. As a professional business appraiser, Peak Business Valuation works with dozens of reputable SBA lenders across the country. We are happy to connect you with an experienced machine shop SBA lender! In addition, Peak can provide you with an SBA business valuation or SBA equipment appraisal. Start now by scheduling a free consultation with Peak Business Valuation below!
Benefits of SBA Loans for Machine Shops
SBA loans for machine shops come with a wide range of benefits whether you are starting, buying, or growing a machine shop. For example, SBA loans for machine shops are guaranteed by the Small Business Administration. This means that the SBA will help repay the cost of the loan if business owners need assistance. As such, SBA lenders are more willing to approve loans to qualifying applicants. In addition, SBA loans feature long repayment terms and low down payments. This makes it affordable to operate a machine shop. To learn more about SBA loans for machine shops, see SBA Business Valuations.
Buying a Machine Shop with an SBA Loan
Buying a machine shop is an effective way to establish a strong customer base and reputation. However, it often comes with various expenses such as closing costs, equipment purchases or upgrades, supply purchases, etc… With an SBA loan for buying a machine shop, you can finance the cost of the machine shop and any additional expenses. Additionally, SBA loans generally have low-interest rates, low down payments, and long repayment periods. This makes buying a machine shop feasible if the purchase exceeds your budget. In addition, purchasing a machine shop with an SBA loan promotes financial flexibility as you establish your business.
SBA 7(a) Loans for Machine Shops
The SBA 7(a) loan is one of the most common SBA loans. This loan can finance a wide variety of needs at a machine shop. For instance, operators may use the SBA 7(a) loan to buy a machine shop, refinance debt, buy out a partner, etc… The SBA 7(a) loan allows applicants to borrow up to $5 million in financing. This loan program also features lower interest rates than traditional loans. Additionally, the SBA 7(a) loan can be used for up to 10 years. This is helpful if you need help financing any aspect of your machine shop. Schedule a free consultation to learn more about SBA loans for machine shops.
Expanding a Machine Shop with an SBA 504 Loan
If you are looking to expand a machine shop, you may consider obtaining the SBA 504 loan. This loan provides access to funds that are typically difficult to obtain. For example, expanding a machine shop may require purchasing commercial real estate. Machine shop owners may use an SBA 504 loan to finance the real estate purchase. In addition, the SBA 504 loan can be used to purchase large or long-term equipment and machinery.
SBA Equipment Loans for Machine Shops
Next, it is important to ensure that you have high-quality equipment when operating a machine shop. Some common machine shop equipment includes lathes, milling machines, drills, presses, grinders, etc… This machinery and equipment can be expensive. As such, it may be helpful to finance the equipment purchases with an SBA loan. SBA financing for machine shops is more affordable and convenient than conventional loan options.
When applying for an SBA loan for a machine shop, SBA lenders often require a machinery or equipment valuation. Peak Business Valuation frequently provides machinery and equipment appraisals for machine shops. We are happy to help you! Peak can also answer your questions about SBA loans and SBA equipment appraisals for machine shops. See Obtaining a Machine Shop Equipment Appraisal to learn more. Schedule your free consultation with Peak Business Valuation today!
SBA 7(a) Line of Credit for Machine Shops
Finally, the SBA 7(a) line of credit is an ideal option for machine shops that need quick access to funds. The SBA 7(a) line of credit is similar to a traditional credit card or a home equity loan. Once the loan is approved, applicants are given a credit limit which they can use and pay off as needed. As such, this SBA loan can be used to finance various machine shop needs. For instance, business owners can use the SBA 7(a) line of credit to finance inventory, working capital, business expansion, equipment upgrades, etc… SBA loans come with many unique benefits. Schedule a free consultation with Peak Business Valuation, business appraiser to learn more
Conclusion
Whether you are starting, buying, or growing a machine shop, securing an SBA loan for a machine shop can help you succeed. Several SBA loan programs can make operating a machine shop affordable. To learn more, see SBA Loans or SBA Financing. During the SBA loan application process, SBA lenders may request an SBA business valuation or SBA equipment appraisal for a machine shop. Peak Business Valuation is happy to help!
At Peak Business Valuation, we work with many machine shops throughout the nation. We are happy to provide you with an SBA business valuation. In addition, Peak works with over 80 SBA lenders throughout the country! We can connect you with an SBA lender and answer any questions you may have about SBA loans for machine shops. Schedule a free consultation with Peak Business Valuation today to get started!
