An SBA loan makes it possible for small businesses that would not otherwise obtain traditional bank loans to access funding at reasonable rates and terms. This is because the SBA guarantees part of the loan, reducing the risk to which lenders are exposed. As such, smaller banks can extend funding for startups and business expansion. 

SBA 7 (a) loans

This loan allows startups and expanding businesses to manage their cash flow. With the lower down payment and longer loan term, businesses can focus on their operational expenses. To qualify, you will need business tax returns from the past three years and personal tax returns for shareholders with over 20 percent stake. 

SBA Express loans

If you are looking for long term financing for your working capital needs, this SBA loan will work for you. Eligible businesses have to be over 18 months old, while the owners must be US citizens or Green cardholders. Loan amounts below $100,000 do not need proof of income. However, specific tax returns are required for loans above $100,000. 

SBA CDC/ 504

This loan offers fixed-rate long term financing for financing assets. The owner of the business must occupy at least 51 percent of the asset, not have sales of over $6 million or have over 500 employees. All applicants should meet the set-out eligibility criteria in order to be considered for the loan. 

SBA’s Community Advantage loan program

The SBA loan is designed to help the needs of small businesses in underserved markets. As much as the borrower may demonstrate the viability of the business or their creditworthiness, qualification is not so much dependent on the size of their balance sheet or the value of the collateral. The mission of the loan is to increase access to funding for businesses that would not normally be able to obtain it. 

SBA’s Microloan program

With this option, startups and expanding businesses can access loans of up to $50,000. The average microloan is about $13,000, and the money can be put into a variety of uses. 

Small businesses are critical in creating jobs and driving economic growth. Apart from loans, SBA helps small businesses to access federal contracts, offers training programs, and helps businesses to rebuild after a disaster. If you wish to get more information on funding opportunities for businesses, contact Simplicity Capital Finance today.