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
