Applying for a Business Loan with the help of the SBA & IOOGO!

Dear Reader, the Small Business Administration (SBA) can help you access loans, capital & opportunities to Expand or Aid your business!

Their business loan matching program offers you a list of secure lenders and preferential rates while guiding you to apply for a loan that will fit your business needs!

Types of Loans

7(a) Loans:
Financial help for SB with special needs. You can apply & use the loan to:

  • Purchase real estate for your business
  • Get short/long-term working capital
  • Refinance existing debt
  • Purchase furniture, fixtures, or supplies

Repayment terms & interest may vary, but terms can be up to more than 7 years & interest rates in between 2 & LIBOR/SBA Peg Rate+3%, according to your loan duration.
To know the details of the rates, check the SBA’s 7a-loans portal.

504 Loans:
Long-term, fixed-rate loans. Up to $5M for major assets purchases like:

  • New, upgraded, or renewed buildings.
  • Long-term machinery.
  • Modernization of facilities.

Repayment terms are from 10 to 25 years, while interest rates’ basis is US Treasury bonds, usually around 3% annual rate.

They’re available only through Certified Development Companies (CDC), which are certified and regulated by the SBA.

Microloans:
Loans up to $50K to help SB & certain non-profits to startup or expand. Uses include:

  • Working capital
  • Inventory & supplies
  • Furniture
  • Machinery, equipment
  • Fixtures required to operate

You cannot use them to repay existing debts or purchase real estate.

The maximum repayment time is 6 years, while interest rates are generally 8–13%.

Lender Matching
To help Small Businesses receive loans from safe lenders, the SBA has a Lender Match program!
You can describe your business needs and goals & you’ll receive a list of the best potential Lenders. Then applying for the credit gets simpler!

How to apply & comply?
Most lenders will require from you:

  • A thoroughly designed investment project,
  • If available, Solid Historic Financial Reports,
  • A reasonable ROI projection.

Some lenders may require access to your financial reports during the term of the loan. This in order to ensure that your company has a healthy position.

Having a solid Accounting service to provide you with updated financials is the easiest way to comply with the loan requirements & avoid fees!

At IOOGO, we’ve helped several companies to fruitfully apply & manage loans! Whether checking historic P&L reports or designing an investment project with our on-demand CFO, success is almost granted when you have the right team at your side!

Resources

https://www.sba.gov/funding-programs/loans/microloans

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