Many people desire to start a small business. These folks have great ideas and energy. As they focus on success, they often realize that they may need an infusion of capital to continue with their dream. In these cases, small business loans may be just the ticket to continued success. Let’s look deeper.
The Small Business Association
The federal government has long supported small business owners through its policies, laws, and tax preferences. A number of government and other agencies exist to help small-business owners. Foremost among these is the Small Business Association (SBA). The SBA can make it easy for small businesses to qualify for financing, even if they have had difficulty in receiving conventional loans.
Types of Small Business Loans
The SBA offers several types of financing, based on the needs of typical business situations. Some of the most popular are:
- SBA 7(a) Loans. These are the most common type of SBA loans. They are designed to address most costs associated with small businesses including infusion of capital, renovations, purchase or lease of equipment, property purchase, and more. These loans are available in amounts of up to $5,000,000.
- SBA Disaster Loans. These low-interest loans are designed for small businesses in areas designated as a declared disaster.
- CDC/SBA 504 Loans. These can enable businesses to acquire capital for their expansion or modernization. Repayment periods are generous, up to a quarter-century in some cases. Like 7(a) loans, these loans peak out at $5,000,000.
- SBA Microloans. Microloans of up to $50,000 available through the SBA. Averaging about $13,000 each, they are offered by non-profit, community-based organizations with experience in lending. They can be used for a variety of purposes that â€¯help small businesses expand.
Connect with Critical Capital Solutions
Give Critical Capital Solutions a call today to get more information about SBA loans that would be effective in your particular business situation. We are here to help.