SBA Loan California

Our SBA Loan programs assist with the acquisition of commercial real estate for business owners and investors. And our expertise in attractive, low-interest, government-backed  SBA loan programs enables us to assist our borrowers with other funding sources as well.

What will the SBA Loan cover?

This SBA Loan can be used to assist small businesses in restructuring their balance sheet, purchasing equipment, or to acquire another business. Count on our expert staff to provide exceptional service, streamline the processing, and offer responsive, local decision-making  on your SBA Loan request.

Basic uses for 7(a) SBA loan proceeds include:

• To provide long-term working capital to use to pay operational expenses, accounts payable and/or to purchase inventory
• Short-term working capital needs, including seasonal financing, contract performance, construction financing and exporting
• Revolving funds based on the value of existing inventory and receivables, under special conditions
• To purchase equipment, machinery, furniture, fixtures, supplies or materials
• To purchase real estate, including land and buildings
• To construct a new building or renovate an existing building
• To establish a new business or assist in the acquisition, operation or expansion of an existing business
• To refinance existing business debt, under certain conditions

SBA loans cannot be used for these purposes:

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  SBA Loan

  To refinance existing debt where the lender is in a position to sustain a loss and SBA Loan would take over that loss through refinancing

• To affect a partial change of business ownership or a change that will not benefit the business
• To permit the reimbursement of funds owed to any owner, including any equity injection or injection of capital to continue the business until the SBA-backed loan is disbursed
• To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow
• For a purpose that is not considered to be a sound business purpose as determined by SBA.

If you are unsure whether or not your anticipated use of your SBA Loan funds is allowed call us today.

Call us today at 424 225 2167! One of our mortgage professionals will help you get the best possible SBA loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.

SBA Loans

 Financing small business is a sure way to boost the economy through the simultaneous creation of jobs as well as increased spending potential of a vast network of people. Thus, it’s quite common you’ll find lobby groups passionately advocating further government subsidies for small business given that they’re one of the principal employers in the country. Often, however, starting a small business in these turbulent economic times can spell trouble, so much so, that small businesses require financial assistance. One of the best ways to ameliorate your financial concerns is through accessing the SBA loans. These are loans that provide benefits for not only the small business but also to the bank lender itself.

Guarantee of SBA Loans

One of the chief benefits of SBA loans is that they are guaranteed by the U.S. Small Business Administration. This commercial loan can be applied for at your local bank pending a review of your fiscal situation. Once this review is complete then you can receive the benefits of the SBA loan. However, we need to stress that it isn’t only the commercial entity that benefits from this loan. One of the neatest aspects of this financial assistance is that the U.S. Small Business Administration will reimburse the bank a given percentage should you default on your loan. This harbours the benefit of providing greater confidence to the banks in issuing loans that they would otherwise have rejected.

This provides a significant incentive for financial institutions to take greater consideration into small business, which is the intention that the government had in the first place. Moreover, the bank can become much more generous in its terms and conditions in that they can opt to provide longer terms of repayment. This further assists the small business in meeting its repayments in a more flexible and manageable way. This has provided a huge impetus for small businesses as they can now develop and prosper to a much greater degree due to this easier access to capital. On a national level, this benefits the economy by reducing the unemployment rate and increasing consumer confidence.

SBA Loan Equity Provision

The SBA loan amount that can be issued depends on several factors. As can be expected, the differing factors that separate one business from another can markedly affect the overall lent capital which can vary from between $4,000 to $2 million. Indeed, let’s take this latter amount and reflect back on that government guarantee. Should a business secure a two-million dollar loan then the government is obliged to guarantee a maximum of 75% of that loan. As you can see, this guarantee has had a significant impact particularly when the quantity guaranteed can be so high.

Types of SBA Loan

Given the relative simplicity of the loan system, we should expect a parallel simplicity in the varying types, and this is exactly what we get. For instance, the differing types of SBA loan include:

• Long-term capital investment in franchising a start-up business.

• Equipment loans for those that necessitate this type of material.

• Mortgage loans that assist in the financing of construction or purchase of commercial properties.

At this point, it’s worth mentioning that earlier on in this article we referred to the review process that will have to take place if you’re to be issued an SBA loan. Well, it also turns out that there’s a novel development out there called the Low Doc Program. This program substantially cuts away the analysis and review required and acts as a convenient simplification process for the issuing banks. However, this one-page convenience is only permitted for loans that are less than $100,000, so do bear this in mind should you wish to avail of it.

SBA Loan Applications

Try to ensure that when applying for an SBA loan that you do so at a local bank with a recent history of issuing such loans. This is because you’ll be guaranteed a swifter and more smoothly run application without unexpected nuisances erupting on their end. Furthermore, try to be prepared about your own current business portfolio, its finances as well as where you project your business to be. It’s important to reassure the banks that not only are you a creditable and potentially profitable business, but also a viable business that has longevity. In addition, you’ll need to furnish evidence to prove that you’ll be able to realistically pay back the instalments without catastrophically impacting upon your business. Once this laborious process has been concluded, you can finally put into action the prospects outlined in your business plan and create a successful rewarding business.

 

Call us today at 424 225 2167! One of our mortgage professionals will help you get the best possible SBA loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.