5 Key Takeaways on the Road to Dominating Experts
You will note that at this present time, so many businesses are appearing on the scene almost every month. There is a need for start up businesses for funding so that it can help their business to grow and succeed. You need a business loan for keeping up with your business whether you are just starting a business, expanding your current one, or if you want to buy an existing one. The good news is that there are a lot of start up business loans available for those struggling to get funds for their needs. If you want to know what these business loans are, they are discussed in brief below.
This business financing are actually being offered by the Small Business Administration or SBA. SBA Loans do not directly come from the government, but they have commercial lending partners that grant these loans which are guaranteed by the SBA. This type of arrangement reduces the risk for both the lender and the borrower. It is the government, however, who sets the requirements of the loan, and its terms can get affected when there are changes in economy or in policy. The borrower can get options for SBA loan forgiveness if the loan terms are affected by economic or policy changes.
You can get a business loan for many types of business needs. Business loans are needed for starting a business, working capital, buying a business, or expanding your current one. You can also get loans if you are constructing a new building or renovating an existing one or if you need equipment, machinery or other supplies for your business. Debt consolidation, or home or business repair after a disaster are the other uses of a business loan. Down payments and collateral may differ for these different uses of business loans.
Here are some types of business loans for small business owners.
The 7(a) loans can be used for working capital, to buy real estate, to construct or renovate buildings, or for debt consolidation. This business loan is very common and flexible. The maximum loan you can get for this type of loan is $5 million for 10 years for capital and 25 years for fixed assets.
If you have new or growing businesses, you might just need a small loan. For your start up, if you need less than $50,000, you can apply for a microloan. Microloans have a 6 year repayment term.
The CDC/504 loan program is for real estate and equipment loans which is a long-term, fixed rate financing. Working capital or inventory are not included in this type of loan. The maximum loan amount is $5.5 million for a 10 or 20 year maturity term.
Disaster loans are available for those businesses that have suffered because of a disaster. They can loan up to $2 million to repair real estate or damaged equipment.