When it comes to funding your small business, there are many options available. One of the most popular is securing a Small Business Administration (SBA) loan. SBA loans are government-backed loans designed to help businesses with fewer than 500 employees access the capital they need to grow and succeed. There are several types of SBA loans available, each with its own set of qualifications and benefits. To make sure you get the best deal for your business, it’s important to understand the different types of SBA loans before applying for one.
1. SBA 7(a) Loan Program
This is the most popular type of loan offered through the Small Business Administration and can be used for a variety of purposes, including purchasing inventory or equipment, refinancing debt, or even starting a business. The maximum amount you can borrow depends on your creditworthiness, as well as the purpose and amount of your loan.
2. SBA 504 Loan Program
This program is designed to help small businesses purchase or expand fixed assets, such as real estate, equipment, and machinery. The maximum amount you can borrow is based on the cost of the asset that you’re purchasing or improving.
3. SBA Microloan Program
This loan program is designed to help entrepreneurs and small business owners who need smaller amounts of money, usually up to $50,000. These loans are provided through nonprofit community organizations and can be used for working capital or to purchase inventory, supplies, furniture, machinery, equipment, or other fixed assets.
4. SBA Disaster Loan Program
This program is intended to help small businesses affected by a declared disaster, such as a hurricane or earthquake. It can be used to repair or replace damaged property, or to cover lost income due to the disaster.
If you’re looking for financing for your small business, an SBA loan may be the answer. Knowing which type of loan is right for you and your business will help you secure the best deal possible. Contact Royall Capital Funding today to discuss SBA loan options for your business.