Which type of SBA loan is right for your business?

The most common types of SBA loans

The SBA offers several loan programs to help businesses meet a variety of challenges. The agency’s major loan programs are:

7(a) loans:, Opens overlay loans designed to fund a wide range of activities, such as real estate purchases and construction
504 loans:, Opens overlay long-term financing for owner-occupied commercial real estate and long-term machinery and equipment projects that will create jobs
Microloans:, Opens overlay loans capped at $50,000 and focused on startup costs and expansion for smaller businesses and certain not-for-profit childcare centers; offered by community development lenders and listed on the SBA District Office website in your area
Disaster loans:, Opens overlay special loans for businesses and nonprofit organizations that need to repair or recover from a federally declared disaster such as a hurricane or tornado; issued directly by the SBA, not through lenders

What are he benefits of a Small Business loan?

Easier Qualification

Compared to traditional bank loans, SBA loans often have more lenient credit requirements. The SBA guarantees a portion of the loan, reducing risk for lenders and making them more willing to work with businesses that might not qualify for other financing options.
Competitive Interest Rates

SBA loans typically offer competitive interest rates. Because the SBA shares the risk with lenders, they can afford to offer more favorable terms to borrowers.
Longer Repayment Terms

One of the biggest advantages of SBA loans is the potential for longer repayment terms. This can help businesses manage their cash flow and make loan payments more manageable.