As an owner of a small business, you have two goals. You strive to please clients and make a profit. You can’t meet these goals if you don’t have capital.
Did you know small business owners can apply for a loan? Yes, you can apply for a small business loan through the government.
Many small business owners affected by the pandemic are now seeking to apply for this loan. Don’t wait any longer to take advantage of this opportunity.
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5 Rewarding Benefits of SBA Loans
Read this article to learn about the 5 rewarding benefits of applying for a small business loan.
1. Offers Different Types of Small Business Loans
The Small Business Administration, or SBA, offers SBA loans. This agency offers three types of SBA loans.
The most popular loan is the SBA 7(a) loan. This gives small business owners the chance to borrow up to $5 million. The loan terms can go up to seven years.
The SBA 504 loan is for small business owners who are seeking to fix or upgrade existing assets. It’s also for owners who want to expand their small businesses.
It’s great for buying real estate or new equipment. Terms for this loan can go up to 25 years.
If you need to borrow less than $50,000 you can consider a microloan. The SBA gives you up to six years to repay it.
2. Lower Interest Rates
SBA loans have low interest rates. You don’t have to worry about the loan’s cost in the long run. The interest rates will depend on your credit and other factors, but these rates are among the lowest.
The rates hover around 6% interest. The interest rates will not climb into double-digit. This is a major benefit for small business owners who need financial help.
3. Down Payments
Depending on the type of loan you seek, you might have to put a down payment. There’s no need to panic. The down payments are lower than most other loans.
Let’s say you want to get an SBA 7(a) loan. The down payment might be 10%-20%.
Want to get a microloan? There’s no down payment for this type of loan. That’s one less thing to worry about.
4. Flexible Payment Options
On top of the low rates, SBA offers flexible payment options. You want to remain in good standing, but what happens if your business undergoes hardship?
The good news is that you might be able to defer the payments. You might be able to refinance the loan. You can also schedule interest-only payments to future dates.
5. It’s Easier to Qualify
You might be asking yourself, “Do I qualify for an SBA loan?” If you meet the SBA’s standards, chances are you will qualify for one. Nothing beats getting a loan from the SBA.
Apply For a Small Business Loan Now
As a business owner, you might be eligible to receive a small business loan from the SBA. Consider the SBA as a small business loan service. Apply for an SBA loan now.
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