SBA Loans Types

The Small Business Administration (SBA) is a government body and agency that is tasked to support and give a hand to small businesses that are starting and that are looking for funds for expansion and for development. This initiative by the government is for them to be able to assist these small businesses so they can produce jobs around the country.

Based on the report of the SBA, small businesses create a total of 1.5 million jobs every year. This translates to 64% of new jobs in the United States in a specific year. So the reason why there is an SBA is for jobs to flourish – so that many people will be able to enjoy employment.

Under the umbrella of the loans of the SBA, there are a total of six (6) different types of loans that they offer. In this article, we will be closely looking at them and we’ll see if any of the SBA loan types are the ones for your business.

The Problem with SBA Loans

The SBA is a remarkable agency, responsible for some of the success that small businesses are enjoying but there’s just one problem – and it is with the approval rate. The SBA is strict when it comes to the requirements and the qualifications.

This means that only the most qualified businesses have the chance to apply and be approved for any of their loans. Those that are just starting, or those who really need help might not have the chance to.

The Types of SBA Loans

The six (6) SBA loan types are:

SBA 7(a) loans

Considered as the most popular of all the loans, it can provide a capital of up to $5 million. It’s most popular because the funds can be used from starting a new business, purchasing equipment or assets, or even business expansion.

SBA Microloans

This is for small businesses that are in dire need of working capital, but substantially smaller in amount. It could be just for a simple purchase of equipment, or opening a new site or office.

SBA CDC or the 504 Loan Program

Now compared to the other loans, this is the type of SBA loan that focuses on the purchasing of real-estate. It’s a loan that is a combination of contributions from the borrower, the CDC, and a private lender.

SBA Disaster Loans

Probably the loan you never want to apply to, the SBA Disaster Loan is the type of loan given to companies that have been struck by a natural disaster. But companies aren’t the only ones who can be approved of this loan – homeowners, too!

SBA Export Loans

From its term, this type of loan is open to businesses that have plans of going overseas. It’s given especially to businesses that are in need of funding for their activity offshore as it’s better for the economy.

SBA CAPLines

Lastly, the SBA CAPLines is the type of loan that is for companies that need a line of credit that can be opened for usage again. It offers a revolving credit to pursue regular payments that can be a preparation for future costs and expenses.

All of these types of loans that the SBA offers are definitely wonderful. It’s just that, the requirements and the qualifications are hard to meet. Most usually, only well-known ad well-established businesses are the ones they approve. This leaves starters and new businesses a slim chance of being approved.

No other company has the same types of SBA loans but here with us at SoFlo Funding, we can help you finance or fund your business. We are the company that has caught all businesses that faced rejection from SBA – and we never disappointed them.

In fact, many of our clients thought that the programs and benefits we offer are better than theirs! We have worked hard to come up with these investment plans and repayment terms.