Financing your business through the SBA loans can become easy when you know the basic facts about them, as indicated in this article. This will include in-depth knowledge of the meaning of SBA loans, the types, eligibility criteria, lists, application guides and advice that should put things in place.
Table of Contents
1. SBA LOAN APPLICATION PROCESS 7(a)
The process of obtaining this particular loan is not difficult because the SBA authorized lender will help you throughout the process. First of all, you must find an approved SBA lender, which will be a step taken once you have decided what you want to do with the loan. You must then go to the bank or the caisse populaire to sign the documents presented. You will also have to make your personal financial documents and those of your company available. Once the documentary business is completed with the help of your lender, your loan will be available within 5 to 10 working days.
The maximum amount of the short term small business loans granted by the CDC (Certified Development Company) is $5.5 million for energy policy objectives and manufacturers and $5 million for defined policy objectives.
Eligibility
Eligibility factors to obtain this loan include the following factors: the borrower must meet the agency’s small business qualification; the company’s average income should not exceed $5 million after tax for 2 years; and the borrower must not have a tangible net worth greater than $15 million. The size of the project in mind must be greater than the non-constrained personal liquid assets of the principals. In addition, the property must be 51% of American citizens or foreigners registered with a green card.
The application process for this loan is the same as loan 7 (a) with the deadline to receive the loan. While the 7(a) loan takes 5 to 10 days, the 504 loans are in the range of 30 to 60 days, which will be part of the regular monthly sale of debentures.
2. LOAN SBA CDC/504
This loan, unlike loan 7(a), makes capital available for the purchase of assets, which mainly include low-cost real estate, machinery and buildings. The agency grants loans to three parties where the owner of the company puts 10%, the lender or bank puts 50% and the CDC puts the remaining 40%.
Organizations are created to help economic growth, especially in local areas. The maximum amount of the loan granted by the CDC is $5.5 million for energy policy objectives and manufacturers and $5 million to achieve the defined policy objectives.
Eligibility
These loan factors include: the borrower must meet the agency’s small business qualification, the company’s average income cannot exceed $5 million after tax for 2 years, and the borrower must not have a tangible net worth greater than $15 million, the size of the project in mind must be greater than the principals’ enighed personal liquid assets.
While the 7 (a) loan can be ready within 5 to 10 days, the 504 loans take between 30 and 60 days, which will be part of the regular monthly sale of debentures.
3. ASB microloans
The US government uses intermediaries for this particular loan as a major tool to reach small business owners. They provide funds to these intermediate lenders, which are non-profit and community-based, who in turn provide assistance through the microcredit program to eligible borrowers. These small business loans california are used for different purposes, such as machinery or equipment requirements, furniture, supplies and working capital.
Request for a microcredit
Applications for this loan differ from the previous ones because they take into account several requirements, including training and planning, to obtain approval.
The reason for this training is to help you launch and develop your business. At the end of the training, find an SBA-approved intermediary in your region or community. The SBA-approved intermediary makes all credit decisions on SBA microcredits.
In addition, as an intermediary of the SBA with the SBA itself involved, seeking the approval of both parties takes up to 30 to 90 days. Patience is the key to this particular loan.
