Who Applies to SBA Guaranteed Loans
To start or expand your business you have options that lenders and institutions such as the US Small Business Administration give you. To take that step, the important thing is to know who applies for SBA guaranteed loans. Hispanic Entrepreneurs gives you the details below. Keep reading.
Benefits of SBA Guaranteed Loans
The Federal Small Business Administration (SBA) aims to reduce risk and allow easy access to resources. Therefore, the secured loans it provides have rates and fees comparable to those of unsecured loans.
In addition, some of these loans have ongoing support to help the client start and run the business. It offers unique benefits such as better down payments, flexible overhead requirements, and in some cases other properties are not required as collateral.
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The SBA allocates a range of resources that goes from 500 to 5.5 million dollars. They can be used for most business objectives including long-term fixed assets and working capital.
Those who request it should be aware of telling the lender to ask for the correct loan, because some programs have restrictions on how you can use the financing.
Serves for working capital that encompasses seasonal financing, export loans, revolving credit and refinanced business debt. As well as fixed assets such as furniture, real estate, construction and remodeling equipment.
Who Applies to SBA Guaranteed Loans
Eligibility requirements are unique to lenders and loan programs. They are generally based on the activity that a business performs to earn income. The nature of your property and where it operates.
Usually these businesses must meet size standards, have the ability to repay and have a strong business objective. But don't be discouraged, because even those with bad credit can qualify for startup financing.
How to opt for the loan of the SBA
To qualify for the loan, it must be a commercial business, formally registered and legally functioning. That it is physically located and operates in the United States or in some of its territories.
Have capital and time invested in the business, and not having obtained funds from another lender. Applicants must be able to demonstrate that they are in need of a loan and not have any debt to the United States government.
To contact the lenders enter the program called Lender Match and describe the needs of your company. Then you will receive an email with the contact information of the lenders who are interested, talk to them, compare rates, terms and charges. When you have all the data, send the loan application and the documentation.
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