Saturday, January 9, 2016

SBA Loan Programs

An SBA loan can help in financing business acquisitions, commercial real estate, construction and renovation, furniture, fixtures, machinery and equipment.
Benefits of SBA Financing: 
  • Longer loan terms - up to 25 years
  • Lower down payments
  • No prepayment penalties for terms less than 15 years
7(a) General Loan Program: 
  • Financing for leasehold improvements, real estate purchases and business acquisitions
  • Limited loan covenants
  • No balloon payments
  • Terms up to 25 years
  • Loans starting from $250,000
504 Program: 
  • Term loans of 10 years or 20 years
  • Financing for fixed assets including real estate, improvements, construction, renovation and long term equipment purchases
  • Low fixed-rate financing
  • Low equity injections - usually 10% to 20% down payment
  • Loans starting from $500,000
  • Permissable debt refinancing when involves business expansion

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