SBA 7 A Loan Program
The Small Business Administration‘s flagship guarantee loan program is the 7(a). This SBA loan program is the loan most small business will want to receive. This program is designed to help obtain a capital injection for the small business owner. The flexibility of this type of loan makes it very attractive to both borrower and bank. With the current economical challenges that small business faces, this loan may be used not only for expansion but could be utilized for refinancing current business debt as long as the funds received from the SBA 7a loan program are used for good business practices.
SBA 7a Loan Program | Examples Of Uses
- Working capital
- Purchase of machinery
- Obtaining new equipment
- Refinancing existing debit
- New fixtures
- Renovations to existing buildings
- Acquiring new buildings or land
- Furniture purchases
SBA 7a Loan Program | Get It If You Can
The old adage of the early bird gets the worm would apply here. With the current economy, the United States Small Business Administration has expanded the 7a loan program to meet the needs of more businesses. The expansions will not last forever and the increase in the guarantee will most certainly be lowered in the future. Participating banks and lending institutions have all been under scrutiny for many years. The credit crunch that we have seen in the past has been, to some degree, elevated by the SBA. Banks that participate in the SBA 7a loan program have the opportunity to fund and service a small business loan with up to a 90 percent guarantee from the SBA. With this lowered risk lenders will be more receptive, even if you are less than perfect. As always, with any loan or mortgage, completing your due diligence is a smart idea. Shop around to find the best rate and term. There is no law that says you cannot have more than one loan application approved at a time. This means if a bank is going to write a loan according to the SBA 7a program, you can certainly have more than one and up to three, banks that could make you an offer.