What is a SBA loan
Small businesses are the backbone of the economy, and they need funding to grow and succeed. One of the most popular options for small business owners is a Small Business Administration (SBA) loan. But what exactly is an SBA loan, and how does it work?
What is an SBA loan?
An SBA loan is a loan that is partially guaranteed by the Small Business Administration, a government agency that provides support to small businesses. The SBA does not directly lend money to small businesses, but instead works with lenders to provide loan guarantees, making it easier for small businesses to get the funding they need.
Types of SBA loans
There are several types of SBA loans available, including:
- 7(a) loans: the most common type of SBA loan, which can be used for a variety of purposes, such as working capital, equipment purchases, and real estate
- Microloans: small loans of up to $50,000 that are designed for startups and small businesses
- CDC/504 loans: loans for the purchase of fixed assets, such as real estate and equipment
- Disaster loans: loans for businesses that have been affected by a natural disaster
Each type of SBA loan has different requirements and terms, so it's important to do your research and find the one that's right for your business.
How to get an SBA loan
How to Qualify for an SBA Loan w/ Manifest Funding:
• 2 Years Time in Business
• 660+ FICO
• $40,000 Deposited Monthly in Business Bank Account or $500,000 Annual Sales
• No BK/Liens/Foreclosures in Last 3 Years
Benefits of SBA loans
SBA loans offer several benefits to small business owners, including:
- Lower interest rates than many other types of loans
- Longer repayment terms, which can make it easier to manage cash flow
- Access to larger amounts of funding than many other types of loans
- The backing of the SBA, which can give lenders more confidence in your ability to repay the loan
Overall, SBA loans are a great option for small business owners who need funding to grow and succeed. If you're interested in getting an SBA loan, be sure to do your research and find the type of loan that's right for your business.
Conclusion
SBA loans are a valuable resource for small business owners who need funding to grow and succeed. With the backing of the Small Business Administration, these loans offer lower interest rates, longer repayment terms, and access to larger amounts of funding than many other types of loans.
