Is It Time To Get an SBA Loan for Your Business?

The Small Business Administration is tasked with supporting America’s small businesses. Some business owners may think that this is a type of assistance program, but in reality the U.S. economy depends on small businesses to function correctly. That’s why the government has a real stake in encouraging small businesses to thrive and grow. SBA loans are designed to do exactly that for your business.

Many Benefits for Small Businesses

Why are SBA loans helpful for small business owners? These financing options are backed in part by the SBA and funded by local banks. This allows businesses to qualify for better interest rates and terms. Many of these loan options provide comparable rates to what large corporations with excellent credit are able to get.

By qualifying for low interest rates, your business can save thousands or tens of thousands of dollars over the life of a loan. That’s money you can invest in other aspects of your business, such as advertising and payroll.

There are some restrictions to how you can spend an SBA loan, but this type of financing can cover many of the main goals small businesses strive towards: real estate, inventory, equipment and working capital. With large funding amounts, it’s possible to reach those goals and have comfortable monthly payments.

Financing for Construction, Remodeling and Equipment Purchases

The benefits of having a commercial property for your business are immense. You no longer have to worry about a landlord setting your rent costs and taking advantage of your hard work. Instead, you can have a business location that fits your needs perfectly.

SBA loans can pay for construction from the ground up, purchases of real estate and remodeling or expansion of an existing building. The best option depends on your small business’s circumstances and business operations. You can also use SBA financing to buy equipment, from heavy machinery to transportation equipment such as semi-trucks.

Trends With SBA Loans That Make Them Easier To Get

In the past, getting approved for an SBA loan was more challenging for a few reasons. For one thing, many banks focused more on the needs of corporations rather than financing for small businesses. The SBA also had high collateral requirements of up to 25% for certain loans. The good news is that both of these things have changed. If you want to grow your business with SBA loans, there’s never been a better time to apply.