If you're a small business owner, you know better than anyone the need for financing. It's how you purchase real estate, new equipment, refinance debt, and ultimately secure the stability and future of your business. Perhaps what you don't realize, is that not all loans are the same, and that you don't need a different loan for all of financing needs you have.
As a small business lender for over ten years, and with a husband who has been a small business owner for several years, there is one product that I've found that truly covers everything a business needs, without having multiple hands in your pocket, or deadlines to juggle - the SBA 7(a) loan.
What is SBA?
SBA stands for Small Business Administration which is an organization within the government that works specifically to understand the small business climate throughout the country, and to ensure that small businessses receive the financing they need to continue to grow. These loans are ideal for those business owners who cannot secure conventional financing - so if you have less than ideal credit, or if you still have a young business, I would suggest checking out SBA loans. If you have good credit, but still having a hard time securing a conventional loan check out an SBA loan which can help you with debt consolidation, and liquidity preservation.
There are a few different loan products available through the SBA, such as the 7(a), 504, and the Express. Each of these loan products cover a variety of needs, whether you need small money fast, such as for an equipment purchase, or a lot of money spread out for things like partner buyout, expansion or refinance, or some combination of needs.
Though the SBA offers several financing options for small businesses, in my experience, it is the 7(a) loan that best serves businesses across all industries and sizes. I consider the 7(a) product to be the "everything" loan, as business owners can roll all of their needs into one loan. For instance, do you need to refinance, purchase equipment and get a line of credit? You need a 7(a) loan - just one loan, one monthly bill, one interest rate - one product to accomplish everything you need to keep growing. I've worked with business owners from the car wash, self storage, and gas station industries all of whom have benefitted from the SBA 7(a) loan.
The 7(a) loan does have a variable interest term, however, as an SBA preferred lender, Northeast Bank can work with borrowers to obtain a fixed rate, depending on the borrower's credit and other factors. Also, prepayment penalties only apply to those loans which are 15+ year terms, anything less and there are no penalties. Want to learn more? Check out our 7(a) Loan page, or give me a call and we'll determine if the 7(a) is the right fit for you.