Linda McMahon, Former SBA Administrator
IS THE SBA GUARANTEE FEE A GOOD VALUE COMPARED TO CONVENTIONAL LOAN FEES?
Per the Small Business Administration’s website, “SBA-guaranteed loans generally have rates and fees that are comparable to non-guaranteed loans.”
Congress established SBA Business Loans to create jobs for our economy and assist borrowers who may not qualify for traditional bank loans requiring enormous equity contribution.
Lower equity and more extended repayment: Equity for SBA loans range from 10 to 20%, depending on your experience in the respective industry, and the loan will be for 25 years to help reduce your monthly payments. A typical conventional loan requires 30 to 35% equity and is usually only five to seven years in duration.
Experienced SBA Lender: It is essential to have an experienced banker throughout the SBA underwriting and closing process to make sure you secure the best possible loan for your short and long-term needs. A qualified, experienced lender will underwrite and process your loan in an expeditious manner so you will enjoy a timely and desirable closing.
Do I qualify: Contact SBA-Capital, and we will evaluate your loan needs and immediately let you know if you meet the SBA requirements for the business loan you will be requesting. Our proprietary software provides you with analytical details you can rely on to assist you in deciding which loan is best for you.
Industry experience not required: An SBA loan, contrary to most conventional loans, does not require industry experience. Your loan will be approved if you meet the SBA requirements. As described above, the equity amount required is typically 20% if you are inexperienced, but you will receive a favorable 25-year loan.
Loan comparison: Email or call Hershel on his cell at 214-726-9000 to compare SBA and Traditional financing.
Time frame to close: Contact Hershel for an EBITDA analysis of your loan, along with a schedule of events from the beginning of your loan request to your closing date.
Advantages of SBA Loans: (actual case history on our website blog)
- Acquisition loans to purchase an existing business
- Ground-up construction and permanent loans
- Renovation and Restructure loans
- Buy out your partner
- Equipment loans
- Working Capital
- Inventory loans