SBA Loan: Options, Benefits, and Lenders Part 2 of 2
Refinance Your Property OnlineBy refinancing your property online you can take advantage of competitive rates in the convenience of your home. You should consider refinancing ..... ...... the business will use the funds in a manner that will further community or regional public policy goals. Typical goals may include: business district revitalization, export expansion, rural development, expansion of minority business development, etc. In total, there are about 270 CDCs nationwide, each covering a specific geographical area.
Interest rates on 504 loans are pegged to an increment above the current market rate for five-year and 10-year U.S. Treasury issues. Maturities of either 10 or 20 years are available. The 504 loan program is ideal for businesses in need of "brick and mortar" financing such as equipment or building acquisition.
MicroLoan, a 7(m) Loan Program: The MicroLoan Program provides very small loans to start-up or growing small business concerns. Under this program, the SBA makes funds available to nonprofit community based lenders who act as intermediaries. These lenders in turn make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $10,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level.
In addition, each intermediary is required to provide business based training and technical assistance to its borrowers. Individuals and small businesses applying for microloan financing may be required to fulfill training and/or planning requirements before a loan application is considered.
This type of SBA loan is ideal for small businesses that need extra money for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery or equipment. However, the loan funds may not be used for the purchase of real estate or to pay existing debts.
If you qualify for and receive an SBA loan, you can look forward to several benefits. SBA loans typically have longer maturities than comparable bank loans. Because you will be paying the loan back over a longer period of time, down payments and interest rates are usually lower which means you're monthly payment will also be significantly lower than it would be under the terms of a conventional loan.
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