In 2013, Small Business Administration “SBA” has approved over 29 Billion Dollars in small business loans and that number is increasing. SBA works with reputable lenders across the nation and “Medallion Funds” works with many of these lenders. Before looking at SBA loans, there are a few things you must know:
- SBA does not make the loan but insures the lenders and make it easier for them to make loans.
- SBA’s popular loans are: 504c & 7a.
- The 7(a) is the most common and most accessible type of SBA loan. There is no minimum amount, the average loan is around $340,000, and the maximum 7(a) amounts is $5 million. Also, SBA offers express loans which are loans less than $50,000. While 7(a) loans may be the easiest type of SBA loan to apply for and receive, there are some barriers to entry. Please contact a member of “Medallion Funds” team for additional details.
- 504(c) is another popular loan which is designed to provide growing businesses with long-term, fixed-rate financing for major assets like property and buildings (CDC 504), smaller loans for newly established or growing businesses made available through non-profit community lenders (Microloan Program), disaster assistance loans designed to provide financial assistance to repair or replace damage following a declared disaster, loans designed to reduce the economic injury caused in a declared disaster, in addition to export assistance loans, and loans to help veteran-, women-, and minority-owned businesses. For more details, please contact one of our specialists for more details and SBA and other loans. When applying for an SBA loans;
- You don’t need an extensive financial history to apply or be accepted.
- The interest rates are relatively low and are negotiated with the lender.
- The process usually isn’t terribly fast, but is effective.
- SBA EXPRESS is relatively a fast process through which you can get an approval as quick as 36 hours. Please contact one of our specialists for more details.