Do you want to kick off or expand your business? Try out the SBA funding program. SBA loans and grants programs aim at helping you achieve this dream.
Here, you will see the types of funding programs you can qualify for on the SBA platform. In each program, check out how you can qualify.
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SBA Loans and Grants
SBA, in collaboration with lenders, provides small businesses with loans to start up or expand their businesses. The agency doesn’t lend money to business owners through direct means. Rather, it establishes lending rules for its cooperating lenders, community development organizations, and micro-lending institutions. Lenders benefit from the SBA because it lowers their risk and makes it easier for them to obtain cash. Small enterprises will find it easier to obtain loans as a result of this.
Through Lender Match you can find potential buyers that will offer loans for your business.
What is Lender Match?
Lender Match matches borrowers with potential lenders offering SBA-backed funding. With it, you can contact lenders who are willing to lend you money.
Note: Lender Match is a service that helps businesses discover lenders in their communities, not a loan application. Using Lender Match does not promise that you will be matched with a lender or that lenders will offer you a loan.
How to Use Lender Match
- State your needs
In five minutes, answer a few questions and give details about your business.
- Get matched within two days
Two business days after submitting the form, you’ll receive an email with contact information for interested lenders.
- Interact with potential lenders
After that, you’ll begin talking to lenders and filling out forms. Some will contact you, and you can reach out to them as well.
How Much Does SBA Offer in Loans?
SBA loans range in size from small to large, and they can be used for a variety of business needs, including long-term fixed assets and working capital. You can get from $500 to $5.5 million.
When applying for a loan, check with an SBA-approved lender to see if there are any limits on how you can utilize the cash. Your lender will be able to match you with the best loan for your company’s needs.
Types of SBA Loans
- 7(a) loans
The 7(a) Loan Program is SBA’s most common loan program. It includes financial assistance for small enterprises with unique needs. When real estate is part of a business deal, this is the greatest solution.
See all you need to know about 7(a) loans.
- 504 loans
The CDC/504 Loan Program provides up to $5 million in long-term, fixed-rate financing for substantial fixed assets that support business growth and employment creation.
Certified Development Companies (CDCs), the SBA’s community-based partners who govern non-profits and encourage economic development in their communities, offer 504 loans. The SBA certifies and regulates CDCs.
See all you need to know about 504 loans.
- Microloans
The microloan program offers loans of up to $50,000 to small enterprises and various non-profit childcare centers to help them to start up and grow. A typical microloan is around $13,000.
The Small Business Administration (SBA) gives financing to specially designated intermediary lenders, which are nonprofit community-based organizations with lending, management, and technical support experience.
See all you need to know about microloans.
Eligibility Requirements | How to Qualify
Lenders and loan programs have their own set of eligibility criteria. In general, eligibility is determined by what a firm does to earn money, the nature of its ownership, and the location of its operations. In most cases, enterprises must meet SBA size requirements, be able to repay, and have a viable business plan. Even those with a poor credit history may be eligible for startup funding. The lender will supply you with a complete description of your loan’s eligibility conditions.
To qualify for SBA loans, you must:
- Run your business in the US.
- Have exhausted your funding options
- Do a profit-driven business
- Invest your time and money into the business.
SBA Loan Repayment
You can pay back your loans through these easy systems:
- Pay through your personal bank account
- Online payment
- Payment mailing system
See all you need to know about SBA repayment systems
