When it comes to small business financing, FinTech Capital Management is on your side. We’ve taken the long, complicated process of applying for an SBA loan and made it more manageable through our streamlined application process and dedicated team. Our experienced financial professionals are with you every step of the way as you complete our online application and build your financial story. And if an SBA loan isn’t the best option for you, we’ll help you find the right loan for your business from our network of trusted banks and non-bank lenders.
You might have heard SBA loans are the gold standard for small business owners who want to expand. It’s true. Funds from these loans can be used in a multitude of ways to help a small business.
What exactly is an SBA loan? We’ll go over the costs, qualifications, use of proceeds and more to help you determine if this type of loan is the best option to fund your small business.
What is an SBA loan?
An SBA loan is a government-guaranteed small business loan that has a long-term and a low-interest rate. The Small Business Administration (SBA) is the government agency that partially guarantees SBA loans and was founded in 1953 to support small business owners across the United States.
The most common misunderstanding about these loans is that the agency lends money directly to small businesses. However, the agency typically does not make direct loans. The SBA provides a guarantee on the loan, promising to reimburse the bank for a certain percentage of your loan if you default on that loan. This guarantee lowers the risks to banks and other lenders, encouraging them to offer these loans to more American small businesses. Many banks and other financial institutions offer SBA loans, but their process, requirements, and fees can vary.
SBA 7(a) loans from $30,000 – $350,000 from banks in the FinTech Capital Management network can be used for debt refinancing and working capital. Working capital includes operational expenses, marketing, hiring, etc. SBA loans can be used to fund new equipment purchases as well.
SBA 7(a) loans can also be used for refinancing existing business debt not secured by real estate (such as cash advances, business loans, and equipment leases).
SBA Commercial Real Estate loans from $500,000 – $5 million from banks in the FinTech Capital Management network can be used for the purchase or refinance of commercial real estate that is 51% owner-occupied.
Expand your small business with commercial real estate loans up to $5 million.