Benefits of SBA Loans
- It is marked by a long repayment term
- They are issued at a lower interest rate
- SBA loans can be used for multiple purposes like debt refinancing, commercial mortgage refinancing, working capital expense, maintaining the business’s cash flow, paying cash advances, or equipment leasing.
How It Works?
SBA Loans are not the direct loans lent by the government to small business owners, as is commonly understood.
SBA only guarantees the bank or the lender that if a borrower defaults on the loan, a certain percentage of their debt will be paid by SBA. This lowers the lender/bank’s risk, and they lend the debt to the borrowers easily.
The process, requirements, and fees is vary from one financial institution to another. Hence finance experts like us can help you guide through the process, conditions, and fee structures of every financial institution under consideration. This way, you can choose the best lenders while maximizing your own interests and minimizing your obligations.