Benefits of Small Business Administration Loans

Apart from contributing to the growth and comprehensive development of small businesses, there are numerous benefits associated with Small Business Administration Loans.

Seal of the United States Small Business AdministrationThe Small Business Administration is a federal agency that specializes in guaranteeing necessary loans that are made through lending partners throughout the nation.

Somerville Bank is one of those lending partners.

If you want to grow, expand, and increase the overall profitability of your business, you may qualify for a Small Business Administration Loan.

Naturally, you will be required to meet specific types of pre-determined criteria in order to qualify for approval, as well as the credit qualifications that we have in place here at Somerville National Bank; however, once approved, you will experience immense gains.

 

small business loan

The Benefits

Small Business Administration Loans offer many benefits compared to that of the conventional loans offered from banks. These specially-designed loans are structured in such a way that they include low down payments and repayment terms that are longer and lower.

These standards aid in enabling businesses to ensure that their cash flow is steady so that they may meet their operational costs.

In addition to these benefits, you may experience the following benefits from Small Business Administration Loans:

  1. These loans are designed in such a way that they may provide up to 90% in financing for small businesses.
  2. The terms associated with Small Business Administration Loans may go up to a period of – but not exceeding – 25 years.
  3. The loans may be issued for any amount up to a total of 11.25 million.
  4. Small Business Administration Loans have no balloon payments associated with them.
  5. There are both fixed rates and variable rates associated with these loans.
  6. Most businesses that are classified as being “for-profit” meet the guidelines for the loans as set forth by the Small Business Administration in the United States.

In addition to these benefits, there are other benefits of Small Business Administration Loans, based on the amount of the loan issued. These include the following:

  • The loan process is fast, and consists of very little paperwork, which may prove to be extremely time consuming.
  • There are many options when it comes to collateral for the loans. These include using vehicles, business equipment, and the inventory of the business.
  • If the loan is for an amount under $250,000 you may qualify for an unsecured line of credit.
  • If you obtain a loan for over $250,000, you may purchase property for your business, purchase an already-established business, or even finance your own franchise – the choice is yours!
  • Small Business Administration loans have very low interest rates. In fact, many have interest rates of approximately 6.75%.
  • If required to place a down payment, it typically involves only 10% to 20% of that which you are borrowing.

If you need money for your business, SBA loans are the way to go.
Somerville National Bank can assist you.
Simply contact us today at one of our Locations.

 

Resources:
https://www.fundera.com/blog/advantages-of-sba-loans
https://www.lendingtree.com/business/sba/pros-and-cons-of-small-business-administration-loans/
https://www.sba.gov/offices/district/mo/st-louis/resources/could-your-small-business-benefit-sba-guaranteed-loan