Business Loans for the Struggling Business Owner
You will note that at this present time, so many businesses are appearing on the scene almost every month. If you are one of these start up businesses, then you will definitely need enough capital to help your business succeed. Whatever business you have, whether it is a new one or if you are expanding your current one, or if you are thinking of buying an existing one, you will definitely need a business loan for keeping up with your business. There are business loans available for those struggling business owners who need funds to get their businesses on the go. Below are some of these start up loans.
This business financing are actually being offered by the Small Business Administration or SBA. The SBA guarantees the loans provided by commercial lending partners and do not come from them directly. There is reduced risk for this type of lending arrangement. The government sets the requirements for the loans and economic or policy changes, the terms of the loan can get affected. If this happens, you have options for SBA loan forgiveness.
You can get a business loan for many types of business needs. Business loans are needed for starting a business, working capital, buying a business, or expanding your current one. You can also get loans if you are constructing a new building or renovating an existing one or if you need equipment, machinery or other supplies for your business. Debt consolidation, or home or business repair after a disaster are the other uses of a business loan. There are different requirement for down payments and collateral for these different uses of business loans.
Below are some of the loans available for business owners.
Business owners that need working capital, money for buying real estate, for constructing or renovating building, or for debt consolidation can apply for 7(a) loans. Among all the types of business loans, this is the most common and the most flexible. For this type, you can loan up to $5 million which matures in 10 years for capital and 25 years for fixed assets.
You only need a small loan if your business is relatively new or beginning to grow. These types of loans are called microloans which are ideal for startup companies that only need loans of less than $50,000. In this type of loan, repayment terms are shorter which is 6 years.
The CDC/504 loan program is for real estate and equipment loans which is a long-term, fixed rate financing. This loan cannot be used for working capital or inventory. You can loan up to $5.5 million for 10 or 20 year maturity terms.
If you business has suffered due to a natural calamity, you can apply for disaster loans. They can loan up to $2 million to repair real estate or damaged equipment.
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