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What is an SBA Loan?
A collection of long term, low interest loans for the purchase of fixed assets such as real estate, equipment or machinery, expansion capital, funding the purchase of another business, disaster recovery or even, in some cases, refinancing other debts. SBA Loans are partially guaranteed by the government and therefore more attractive to lenders.
Examples of how you could use an SBA Loan… Kitchen equipment for a restaurant, Computers and printers for an office, Building a new office space for an expanding company.
What you’ll need: Minimum Credit Score: 660, Minimum Years of Operation: 2, Minimum Revenue: $100,000 annually
Types of SBA Loans
Below you’ll find a summary of the various kinds of SBA Loans. Each summary has a button that leads to more detailed information. Have have questions or require further clarification, our Big Think advisors are ready and willing to help so please don’t hesitate to contact us.
7(a) Loan Guarantee
These loans are very flexible and can be used to finance such business needs as expansion, equipment purchases, leasing, purchase of inventory and real estate or for working capital. Commercial Real Estate Loans are restricted to the building or purchase of business premises.LOAN AMOUNT:
Working Capital: $350,000 max.
Commercial Real Estate: $5 million max.
TERM: 5 to 25 Years
INTEREST RATE: 6 – 13%
TIME TO FUNDING: As little as 30 days
CDC/504 Fixed Asset
A CDC/504 loan is most often used to purchase major assets, such as real estate or heavy equipment with long life spans. Fixed interest rates with terms up to 25 years. A low down payment is required.LOAN AMOUNT:
Max. $5 million
($5.5 million for manufacturers)
TERM: 10 to 20 Years
INTEREST RATE: 3 – 6.5%
TIME TO FUNDING: As little as 30 days
SBA CAPLines
The CAPLines (SBA Line of Credit) working line of credit program is a range of financial products designed to assist small businesses with their short-term and cyclical capital needs. In most cases, these products are only available to companies which already have a traditional SBA 7(a) or CDC/SBA 504 loan.LOAN AMOUNT:
Maximum $5 million
($200,000 for small asset based)
TERM: Up to 5 Years
INTEREST RATE: 5.75 – 8.25%
TIME TO FUNDING: As little as 30 days
SBA Export Loans
SBA Export Loans are designed to help small businesses expand in to foreign markets. There are three types of SBA Export Loan.LOAN AMOUNT:
Maximum $5 million
TERM: Up to 25 Years
INTEREST RATE: 8 – 10%
TIME TO FUNDING: As little as 30 days
MicroLoan Program
The SBA MicroLoan Program provides working capital to smaller businesses. This capital may be used for a wide variety of purposes, including but not limited to inventory, machinery, raw materials and supplies, labor costs and marketing.Up to $50,000
TERM: Up to 6 Years
INTEREST RATE: 8 – 13%
TIME TO FUNDING: As little as 30 days
Disaster Loans
The disaster loan program, while available to home owners as well, can be accessed by small business owners whose premises have been damaged or destroyed by natural disasters for the purpose of repairs or rebuilding. There are three types of SBA Disaster Loans available.LOAN AMOUNT:
Up to $2 million
TERM: 3 to 30 years
INTEREST RATE: 4 – 8%
TIME TO FUNDING: As little as 30 days
Take the next step to finding the funding for your business needs.
At Big Think we are dedicated to providing business borrowers with a straightforward and transparent funding platform, providing informational resources to ensure that borrowers fully understand their options, and to dealing with borrowers and referrers with the highest standards of business ethics.
