Whether you are starting a manufacturing company or opening up a coffee shop, SBA loans are the way to finance your small business. Small business loans are loans that are guaranteed by the Small Business Administration, which was started to assist entrepreneurs in forming successful small businesses. According to federal government research, small businesses employ fully one-half of America's private sector workforce and over 99 percent of all employers in the U.S. are small business owners.
There are several benefits to SBA loans, including the many licensed lending partners nationwide. The SBA establishes guidelines, reasonable loan terms, and is able to offer better interest rates and options to businesses in the early stages of development.
There are some difficulties in obtaining a small business loan, however, beginning with the requirements for potential borrowers. Lenders will consider the size of your business, including number of employees, and your company's average revenue in certain industries, such as construction or wholesale.
When you call your lender to be considered for a loan, plan on answering a lot of questions about your business. Some information they might ask you for is a business profile (type of business, sales revenue, number of people you employ, and how long you have been in business), a description of the money you need and how you plan to spend it. Also be prepared to provide collateral and explain how you plan to secure the loan.
There are several different types of SBA loan options available, including:
•Basic 7(a) Loan Guaranty,
•Certified Development Company (CDC), a 504 Loan Program
•Microloan, a 7(m) Loan Program
More information about these types of loans can found through your private lender, or the Small Business Administration.
Michael Southard is the Vice President of Security National Capital.
With literally hundreds of credit cards at your disposable, choosing the one that's right for your lifestyle can be a daunting task. You always want to ensure you get a credit card that meets your needs while offering the best rates and the biggest rewards. You can search dozens of local banks and lending institutions, scour the internet, or randomly select a credit card OR you can use our convenient online credit card comparison tool to find exactly the card that's best for you. Our credit card comparison tool will allow you to view credit card details side-by-side in an easy to understand cross grid. You can even select a card and approve online, in some cases being approved within minutes of submission! It truly is the smart way to shop for credit cards!
Print this page