Although I’m not a spendthrift, I feel as if I never have enough money in my bank account. Because I’m setting aside cash in order to buy a new home, I’m always searching for ways to decrease my monthly expenses. Fortunately, through my research, I’ve found some great, simple tips that provide substantial savings over time. For instance, I turn off my HVAC unit whenever I’m traveling. I also conserve gasoline by running all of my errands for the week on the same day. On this blog, I hope you will discover some easy, painless ways to lower your regular monthly bills. Enjoy!
Do you need a loan to help your small business expand or upgrade your equipment or facilities? If so, then one option that you need to consider is a loan from the Small Business Administration, or SBA, an agency of the United States government. Here is a look at this important program and how it can help small business owners.
The Way It Works
The program helps small business owners get loans from financial institutions, such as banks and credit unions, by backing a significant portion of the loan in case the borrower defaults. The agency does not makes the loan itself, but merely acts as a guarantor of the loan. By backing loans to small business owners, the SBA gives financial institutions the incentive to grant loans they would not otherwise make. For this reason, the program can be very helpful for business owners who are not able to get a bank or credit union loan directly.
Eligibility
To qualify for an SBA loan, your business must meet certain size requirements to be considered a small business, such as meeting the employee and revenue limits. The business must operate in the U.S. and be a for-profit enterprise. You will also need to have a good credit score and be operating your business for two years or more. You must show the SBA that the cash flow of your business makes it possible for you to repay the loan on time. You will need to provide some collateral as well, although the collateral does not have to be for the full amount of the loan.
Types
The SBA offers several different types of loans. The most prominent is the 7a term loan. In this program, the agency backs 75 to 85 percent of the loan. The amount of the loan can be as high as 2 million dollars, and the time for repayment can be as much as 25 years.
Another type of loan made by the agency is the CDC loan. This program allow you to borrow more than a 7a loan, with amounts ranging up to 4 million dollars.
A third type of loan is the microloan. This loan works differently from other SBA loan programs. With microloans, the agency does not back a loan made by a bank, but gives money to local non-profit organization, who then make loans to small business owners in the area. The maximum amount for a microloans is $50,000, according to the SBA website.
Share15 January 2019
