2 New SBA Loan Options
SBA loans are an amazing way for small business owners to get the capital needed to keep everything operating smoothly. Financing backed by the Small Business Administration is a great way to expand, purchase real estate, get needed equipment, buy company vehicles or take care of other essentials. Now, things just got even sweeter for small business owners as the SBA tests out two more excellent financing options.
Community Advantage SBA Loans
What if you don’t need a huge loan to finance business essentials? Traditional SBA 7(a) loans are great for large purchases such as commercial properties and equipment, but they can take a while to get authorized, sometimes several months. That doesn’t work well for smaller needs such as website design, marketing or payroll.
Community Advantage loans are designed to cover all of these needs in one fell swoop, by giving owners access to financing that provides a firm foundation for their small business. Everything from assistance with market research and creating a business plan to getting started with payroll and accounting is including in this type of loan.
Even better, Community Advantage is specifically designed to help owners that may have a hard time qualifying for financing otherwise. This includes businesses with less-than-perfect credit, startups, or businesses going through a tough time as far as cash flow is concerned. By guaranteeing the loan for as much as 85% of its value, the SBA takes on most of the risk associated with financing and makes it much easier for applicants to qualify.
The Express Bridge Loan Pilot Program
When disasters strike, business owners don’t have months to wait while loan approval goes through. That’s the purpose behind the Express Bridge Loan program: faster approval for smaller loans designed to keep businesses afloat while rebuilding. That way owners have enough capital to keep the lights on, pay creditors, buy inventory and begin with cleanup efforts and rebuilding while waiting for larger SBA loan approval.
There are a few qualifications for Express Bridge Loans from the SBA. For example, your business has to be located within an area formally declared by the President to be a disaster area. You also need to have worked with the SBA lender in the past, before the disaster appeared. In other words, Express Bridge Loans don’t apply to first-time SBA loan applicants just yet.
To get started with these exciting new loans, the first step is to locate a trustworthy lender with experience in SBA loans. They make the process much easier and can help you fill out the required government documentation.