You may find a number of loans that are available for businesses. Most financial institutions will provide standard asset-based and unsecure...
You may find a number of loans that are available for businesses. Most financial institutions will provide standard asset-based and unsecured loans for businesses to utilize as working capital or for the purchase of real estate, equipment, machinery and inventory. In addition to those loans, the U.S. Small Business Administration (SBA) also provides loan programs to enable individuals to qualify for commercial loans more readily.
SBA Loans
The most common loans available are those directly related to start-up and small businesses. The SBA provides aid to business owners in obtaining these loans. This includes the 7(a) Small Business Loan designed to provide lenders with a guarantee on loans offered to small business owners. Lenders may have protection by as much as 85 percent through this program. Another option is the Certified Develop Company Loan Program or 504 Loan. This is a loan offered to businesses to create jobs or other economic development within a community. These loans are long term and fixed rate and may be used for purchasing land, equipment, major assets or as working capital.
Disaster Loans
The Business Physical Disaster Loan and the Economic Injury Disaster Loan programs aid businesses that are suffering economic loss in an area declared a disaster area. These loans are available to both for-profit and nonprofit organizations of all sizes. Both programs are available indirectly through the SBA. The Military Reservist Economic Injury Disaster Loan Program provides flexible, low-cost financing to a business that could have met its financial needs but is now unable to do so because an essential employee was called to active duty.
COMMENTS