There are lots of people around the world who before doing something new research about it. They try their best to have all the info needed to understand the whole thing. This information that you gather can be sometimes very ambiguous but certain materials are so interesting that you are astonished at them.
Likewise, there are particular data about SBA Loans that you must have not known and are never discussed by others. Further discussion will be held to argue about some thought-provoking facts that will leave you amazed. Also, you will gain new knowledge about these loans.
Table of Contents
The reality of SBA Loans
These loans are guaranteed by the Small Business Administration, a government organization. SBA doesn’t give the loan amount but it only provides facilities to the lenders so that they can provide the loan s to the borrower. As a government institute, it has to look at many things before providing assurance to the lenders.
The loans that SBA guarantees are of different variety which depends on many factors. There are several options to choose from and the factors that can affect your power of selection are;
- The amount that you want to borrow can range from $1000 till $5 Million.
- The repayment period is 5-25 years.
- The interest rate is less than 6%.
- Quick approval speed within 3 weeks.
Types of Loans it provides
The factors mentioned above are different in the types of SBA loans that will be referred below. The most popular types of SBA loans are;
- SBA 7(a) Loans
- SBA Disaster Loans
- SBA Export Loans
- SBA CDC/504 Loans
- SBA Microloans
- SBA CAP Lines
Requirements for Eligibility
Whatever loan you apply for; there are specific terms and conditions that you must qualify for. In the same way, there are requirements for a borrower to qualify for and they are;
- The business that you are applying the loan for must have at least 2 years of history.
- A credit score of 600 or higher is required.
- Annual revenue of more than $100,000 is necessary.
- Tax returns for business and personal bank accounts.
The process of Application
A few simple and easy steps are required to complete the application process of SBA Loans. These steps are;
- Finding the right type of loans that will be appropriate for your business.
- Prepare with the documents so that you can qualify for the eligibility.
- Search for a lender that will give you the best terms and conditions of the loan.
- Submission of the application according to the needs.
- Wait for the lender to approve the application and receive the amount. Orumfy always provides the best platform for both lenders and borrowers to communicate with each other.
Thought Provoking Info Never Imagined
Do you think you know all about SBA Loans? Think again, many of the following information will be a bewildering because you never have thought that SBA Loans would possess such incredible and unique things.
A very Long History
This organization was first established in 1932 under another name when the country was struggling with the great depression. This institute especially helped those businesses which needed assistance in the development of their businesses. World War II created a void in the economy and SBA helped to fill it up.
Providing Capital for Innovative Technologies
The funding that is guaranteed by SBA is not limited to extending a business but the Small Business Innovative Research Program (SBIR) gives away grants to companies who are interested in production and research for better development of technology. These technologies are not only bound for technology purposes but also other departments like; agriculture, defence, education and transport.
Focus on 3Cs
SBA also focuses on the 3Cs of the SBA Loans which are capital, contract and counselling. It provides assurance to the lenders that they can give the borrowers the loan amount without any hesitation. Contracts are been made to provide the clients with finance to boost their business. Lastly, investments are made to ensure that businessmen get help for improving profits.
Funding for Everyone
SBA Loans provide funding for people from every walk of life. The focus is especially on women, disabled, veterans and minorities. This attitude is growing because many lenders show biases for specific persons. But SBA loans are free from such approach as they think that everyone must have an equal chance of success.
Disaster Relief Loan Program
An exclusive loan has been created by SBA and has given the name of SBA Disaster Relief Loan. This loan is given to people who either lose their businesses or face damages due to some disaster like; earthquakes, floods or storms.
The SBA Loans are unique as well as try to help others in many ways. The information provided to you must surely be incredible because this data is nowhere else to be found.
