The US Small Business Administration (SBA) is a government agency that provides support to small businesses through various loan programs. SBA loans are an attractive financing option for entrepreneurs because they often feature lower interest rates and longer repayment terms than traditional bank loans.

SBA 79(a) Loans

One of the most popular types of SBA loans is the 7(a) loan program. This program provides up to $5 million in financing to qualifying businesses, with repayment terms ranging from seven to 25 years depending on the use of funds. To be eligible for this loan program, you must be a business owner that has been operating for at least two years and demonstrate financial need. Additionally, the business must meet certain size standards set by the SBA and operate in an industry that is not explicitly excluded from the program.

SBA 504 Loans

Another popular loan option is the 504 loan program, which provides up to $5 million in long-term fixed-rate financing for businesses that are looking to purchase major assets. Eligibility for this loan program requires businesses to meet the same size standards set by the SBA and have a net worth of less than $15 million. Additionally, the business must use the proceeds from this loan to purchase fixed assets such as land or equipment.

SBA Microloans

One final option is the Microloan Program, which provides short-term loans of up to $50,000 for businesses that need working capital or purchase inventory. This loan program is designed for businesses with fewer than five employees and is especially beneficial for entrepreneurs in underserved markets. To be eligible for a microloan, you must demonstrate the ability to repay the loan and have been operating for at least six months.

Applying for an SBA loan can be a complicated process, so it’s important to do your research and consult with a qualified lender or financial advisor before submitting an application. To get started, you can visit the SBA website to learn more about the different types of loans available and eligibility requirements. Additionally, you can contact a local SBA office or lending partner to find out more information and get help with the application process.

No matter which type of loan you choose, taking advantage of SBA programs is a great way to access the financing your business needs. With its competitive interest rates and long-term repayment terms, an SBA loan can help your business reach its goals and grow into a successful venture. Contact Hudson and Hudson Lending today to get the SBA loan your business needs.