SBA loan is a 7a government small business loan
SBA loan financing is a loan guarantee program supported and funded by the Small Business Administration, a government agency. It is setup to assist businesses that can’t otherwise qualify for loans on reasonable terms. The loans are made by commercial lenders, and the SBA simply guarantees these loans.
With an SBA loan there is no limit on the amount of money you can request for capital. Another thing to keep in mind is that the maximum SBA loan term for a standard 7(a) is going to be 25 years. This can give you some flexibility when it comes to paying back the loan. If you choose a longer term on the loan your monthly payment won’t be as much.
The SBA wants to make sure you are really serious about your business venture, so they will want to see that you have stake in the company. They want to see that you have invested some of your own money into the business. Your organization is another key element of their decision to approve you for financing. They judge this by a detailed and quality business plan that you have made for your business. It should show exactly how much money you need, how that money will be spent, and exactly how you plan to pay the loan back.
Your personal credit rating will also be a key factor in the decision. The higher your personal credit score, the better chance you have of getting financed. They are looking for positive payment history which is a judge of your character.
To find an SBA loan provider browse our free business capital search engine.