What is a SBA Loan & why should I got one?
Whether you are looking for financial help for your small business or simply wondering how to get extended financing, a Small Business Administration (SBA) loan can be just the solution you need. These loans are guaranteed by the Small Business Administration because of this they offer some of the lowest rates on the market as well as long repayment terms and the ability to borrow up to $5 million.
While it is important to research the different types of loans that are out there to make sure it is right for your situation, there is a good chance that an SBA loan could be a smart bet for obtaining a business loan. If it’s not right for you, look for small loans to meet your needs and goals.
Pros
- Lowest rates on the market
- Longer repayment terms
- Guaranteed 85% of the loan amount
Cons
- Long application process
- Requires more paperwork than a traditional loan
The Benefits of a SBA Loan
Depending on the economic situation and the world, you may have a better chance of getting an SBA loan than a regular loan. SBA loans are best for strong credit borrowers who have been operating for 2 years and are willing to work on the long application process to expand their business or refinance debt. Whichever loan you choose, there are great benefits to getting an SBA loan, and it can help you start and grow your business while you carry the loan with you.