Are you looking into a SBA loan to expand your business? Maybe you’d like to purchase inventory or need working capital for an expansion. Through September 30, you’ll save on fees that are normally charged when funding the loan.
There are two types of loans most often used; the 504 and 7(a). The 504 loan provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. The 7(a) loan is for starting, acquiring and expanding a small business.
There are very specific guidelines for eligibility. To learn if your situation qualifies, see the following links:
504 Eligibility
7(a) Eligibility
The SBA does not make direct loans, but instead offers a guarantee to the lender that if you default on your loan, the SBA will reduce their loss by reimbursing the agreed-upon percentage of the amount owed. As the borrower, you are charged a “guarantee fee” which is a percentage of the amount they will pay in the event the loan is not repaid in full.
This fee is usually 3% of the amount the SBA guarantees it will repay to the bank. If the guaranteed amount is $80,000, the cost you would pay for this is $2400. Through September 30, there is a closing fee waiver allowing you to avoid this additional cost to your loan.
If an SBA loan would help you by giving you much-needed funds to start or expand your business, don’t hesitate! Contact a bank providing SBA loans TODAY to process your loan application in enough time to fund before the deadline.
If you are unaware of a bank offering SBA loans, contact us today for a referral to someone we trust!
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