The Federal Small Business Administration (SBA)helps small businesses obtain financing through different types of loans. The SBA also offered specializedCOVID-19 assistance programs through the end of 2021.
The SBA generally doesn’t make loans. Instead, they help business owners get loans from third parties previously approved by them. The exception is SBA Disaster Loans (including Economic Injury Disaster Loans) which the SBA makes directly to small business owners.
SBA loans are considered one of the best small business loans. Small business owners who qualify will get loans with competitive interest rates and favorable repayment terms. So it serves to reason that during these hard times one could apply for one of these loans.
However, not everybody has the know how to get an SBA loan. Let’s us explain what you can do to get one.
How to get an SBA loan
There are over ten different SBA loan programs which offer funds that can be used for working capital, equipment financing, real estate and a variety of other purposes. Rates and terms are excellent. Ideal for business owners with good credit who have had trouble securing financing elsewhere.
In order to get an SBA loan, your business must meet certain criteria so you may qualify for this benefit.
To be eligible, businesses must generally:
- Be a small business as defined by SBA size standards
- Not operate a business in a ineligible industry
- Operate as a for-profit business
- Do business in the U.S. or U.S. territories (or propose to do business in the U.S.)
- Have reasonable owner equity
- Not be eligible for similar loans elsewhere
- Have acceptable credit….ReadMore…
