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SBA Loans
Biz2Credit has helped thousands of small businesses secure SBA loans for their business needs. We are SBA loan experts so you don't have to be.
Business Loans facilitated by Biz2Credit, backed by the Small Business Administration (SBA)
Biz2Credit has been helping small business owners and entrepreneurs secure financing through SBA loan programs for years. We specialize in helping business owners successfully apply for the right type of funding to accomplish their short and long-term goals.
What is an SBA Loan?
The U.S. Small Business Administration, or SBA, is a federal agency that provides loan guaranty programs and other services to support and encourage the growth and development of small businesses across the United States. It was founded on July 30, 1953, and since has delivered over 20 million loans, guarantees, counseling sessions, contracts, and other forms of assistance to small businesses across the country. SBA loans are offered to borrowers through various financial institutions.
Loan Guarantee Program: The SBA guarantees a portion of the small business loan, which makes it easier for lenders to provide loans to businesses that may be in a higher risk category. These businesses may not be in a strong enough financial situation to obtain a traditional bank small business loan, but this is not an issue with the SBA guarantee.
Program Features: SBA programs offer lower down payments and longer term financing, which can help businesses just starting out, or those looking toward expansion, better manage their cash flow. This allows for fewer resources dedicated to debt repayment and more toward operational expenses.
Loan Purposes: Loans from the SBA are provided for various purposes. These include business start-ups or acquisitions, working capital, owner-occupied real estate, franchise financing, inventory, debt refinancing, equipment, and even improvements and renovations.
Choosing an SBA Lender: Biz2Credit can help borrowers find the perfect recognized SBA lender for their needs, and we have the experience needed to make SBA borrowing easier and more convenient for our customers.
Which SBA Financing Solution is right for your business?
| Loan Type | SBA Express Loans | SBA 7(A) Loans | SBA 504 financing |
|---|---|---|---|
| Loan Benefits | Good source of long term financing for working capital needs. | Excellent source for flexible use of proceeds. No balloons or calls and provides highly leveraged financing. | An excellent long term fixed rate product. |
| Eligibility | Borrower(s), Business and Use of Proceeds all need to be eligible. Business need to be over 18 months. Owners should be either US citizens or Green card holders. | Borrower(s), Business and Use of Proceeds all need to be eligible. Owners should be either US citizens or Green card holders. Foreign aliens qualify if they own less than 49% of the business. | Small business concern must occupy at least 51% and use the property along with meeting federal business size standards. It should not have sales of over $6 million or employ more than 500 employees. |
| Use of Proceeds | Usually used for financing working capital needs or for buying equipment. | Financing for long and short term assets used in the normal business operations. Acquisitions and refinances are eligible, and may include real estate and business goodwill. Working lines of credit up to $100,000 are also eligible. | Used to finance long term assets like real estate or equipment. |
| Loan Amounts | Up to $350,000. Loans up to 100,000 do not require any income proof. Loans above $100,000 require last 2 yrs of business and personal tax returns on all principals having more than 20% stake. | Up to $5,000,000 Loans require last 3 yrs of business tax returns, real estate schedule if applicable and 2 yrs of personal tax returns on all principals having more than 20 % stake. | 1st Mortgage = No Limit 2nd Mortgage
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| Rate structure | Rates adjust quarterly, indexed off the Wall Street Journal Prime rate. Typical rates vary from prime plus 1 to prime plus 4. | Rates adjust quarterly, indexed off the Wall Street Journal Prime rate. Typical rates range from Prime plus 1 to prime plus 2. | 1st Mortgage = both fixed and adjustable rates are available. 2nd Mortgage = Fixed rates only. Typical rates are around prime minus 1 on fixed rates. |
| Typical Loan Amortization | Up to 7 years, fully amortized. Typical loan term is around 3 to 5 yrs with an option to roll over up to 7 yrs. | Amortization depends on the use of proceeds. Loans amortize from 7 to 25 years. Loans are fully amortized with no Balloons or Calls. | 1st Mortgage loan provides a maximum amortization of 25 years. 2nd Mortgage loan provides a maximum amortization of 20 years. |
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