A Primer on SBA Loans
The U.S. Small Business Administration helps small business owners obtain funding by guaranteeing a substantial portion of the principal amount of loans issued by lenders (mostly banks). Because there are six SBA loan programs and several loan subcategories, choosing the appropriate SBA loan for your business can get complicated. We will assist you in choosing an SBA loan that best suits the needs of your business. The most popular SBA loan programs allow you to borrow money for nearly any business purpose, including a source of working capital, the purchase of inventory, supplies or equipment, the refinance of debt, the purchase or repair of real estate or the purchase or expansion of a business. Most privately-owned businesses, including partnerships, corporations, limited liability companies and sole proprietorships, fall within the government’s definition of a “small business.” But the definition is inexact and depends on several factors, including the type of industry or sub-industry, the amount of annual gross revenues and the number of employees of the business. The following are the two main guidelines:
• A maximum of 250 to 1,500 employees, and as few as none
• Between $750,000 to $38.5 million of annual gross revenues
We will help you determine the guidelines for your business’s industry or sub-industry.
These are the most popular SBA loans: