SBA Loan Basics for Small Businesses

Is 2021 the year you finally invest in that new piece of equipment or add a new location? Perhaps you hope to consolidate and refinance your debts this year, or offer special training to your employees. Whatever your goals are for 2021, it will take capital to help you achieve them.

For business owners who have exhausted other lending options, an SBA loan may be the perfect fit. Here’s a look at how the program works and why it may be the right fit for you and your business.

An SBA Loan Can Cover a Wide Range of Expenses

One of the major advantages an SBA-backed loan has over other business lending options is its versatility. Many business owners use their SBA loans to cover the purchase or lease of new equipment or to expand to a second location. Others might use the funds to provide special training to staff members, increase their marketing budgets, or refinance and consolidate existing business debts.

Whether you apply for an SBA to fund the purchase of fixed assets or to access working capital, a loan backed by the SBA may be a good option for you if you have exhausted your other lending options. 

An SBA Loan Offers Unique Benefits

The terms of an SBA loan offer business owners more flexibility and services than those of traditional loans. While SBA loan rates and fees are competitive with other business loans, SBA loans generally offer lower down payments and have flexible overhead requirements. Some SBA loan programs may not require collateral. All SBA loans come with continued support from the Small Business Administration.

The SBA Loan Application Process Is Easier and Faster Than Traditional Lending

Many small business owners find that applying for an SBA loan is much easier and faster than securing funds through a traditional loan. Generally, the SBA requires less paperwork than traditional lenders do.  Often, the SBA processes paperwork more quickly than other lenders, putting funding in the hands of loan recipients faster.

Apply for an SBA Loan

Depending on the program, an SBA loan can cover as little as $500 or as much as $5.5 million in expenses. Applicants must be for-profit businesses operating in the United States with equity invested in the business. They must also have exhausted other options for traditional funding.

Starting February 2021, the SBA is waiving the guarantee fee as well as the first 6 months of payments, up to $9,000. Loan applicants will also enjoy a 90% bank guarantee, which will make it easier for many applicants to be approved.

Contact the Legendary Capital Solutions team to learn more about your SBA loan options.

Disclaimer: The contents of this website do not constitute financial advice and are provided for general information purposes only. If you require specific financial advice, you should contact a financial advisor. We can only advise on the basis of specific client instructions and are unable to offer financial advice by email to people who are not our clients. To learn how to become a client of Legendary Capital Solutions, please contact us.

Share this post, choose your platform!

Share on facebook
Share on linkedin
Share on twitter
Share on email

Subscribe To Our Newsletter

Get updates and learn from the best.