The Small Business Administration offers loans to the small businesses who do not meet the eligibility criteria required in order to secure them from the banks as well as other traditional organizations. It is vital to remember that this organization does not offer money to the small businesses directly and that it sets up proper guidelines for the loans that are offered by its partners that include credit unions, community development agencies, banks as well as micro-lending organizations. This organization gives the assurance that a certain portion of this type of fund will be paid back within the scheduled period of time. This type of guarantee from this organization will be able to eliminate all sorts of fear from the mind of the lender in the best possible way. This article will highlight on a few important loans that are offered by this organization for the borrowers in order to fulfill their requirements in the best possible way.
SBA 7 (a) loan
This type of fund is used for multiple business purposes such as renovation of buildings, purchase of fixed assets such as buildings, machinery and furniture and so on. It is used for other business purposes such as repayment of debt, investment of capital and so on. Its term is twenty years in the case of purchase of fixed assets and its term is twenty five years in case of repayment of debt.
SBA 504 loan
This type fund is used for the purchase of land and buildings and for the purchase of different kinds of fixed assets. It is designed in such a way that this organization offers fifty percent of the total cost of a particular project within the scheduled period of time. It is vital to remember that this type of fund cannot be used for capital investment at any point of time. It is used for the purchase of land, machinery and other fixed assets and it is used to renovate buildings and properties in the best possible way.
If you want to run your startup company successfully and if you want to expand your business, it is advisable that you should try to obtain it in the best possible way. It is mainly used to purchase furniture, machinery, equipment, inventory and other fixed assets in the best possible way. It is offered by the intermediary lenders who are associated with nonprofit organizations and who have long years of professional experience.
The Small Business Administration offers them to the businesses that are affected by any kind of disaster. This kind of fund is often used to repair machinery, devices, damaged property and other kinds of assets in the best possible way.
Whether you want to obtain SBA 7 (a) loan or you wish to acquire microloan in the best possible way, it is vital that you should be able to gather knowledge about its application procedure. All you have to do is to provide the necessary documents such as financial statement, documents on income tax, business certificate and so on. The next step that you should follow is to fill up its application form properly and to submit it to a particular partner within the scheduled period of time.