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Get great rates, long repayment terms, and low monthly payments with SBA loans.
What is an SBA loan?
An SBA loan is a government-guaranteed small business loan that has a long-term and a low-interest rate. The Small Business Administration (SBA) is the government agency that partially guarantees SBA loans. It was created in 1953 to help small-scale business owners across the United States.
The most frequently-repeated misconception regarding the loan is the fact that the company loans money directly to small companies. The SBA, however, generally does not offer direct loans. The SBA provides a guarantee on the loan, promising to reimburse the bank for a certain percentage of your loan if you default on that loan. This guarantees lowers the risk for lenders and banks which encourages them to offer SBA loans to even more American small-sized firms. A variety of banks and financial institutions provide SBA loans, however their procedure, requirements, and charges can differ.
What can you use your SBA loan for?
SBA 7(a) loans from $30,000 – $350,000 from banks in the Majesty Strong Business Funding network can be used for debt refinancing and working capital. Working capital includes operational expenses, marketing, hiring, etc. SBA loans can be used to fund new equipment purchases as well.
SBA 7(a) loans can also be used for refinancing existing business debt not secured by real estate (such as cash advances, business loans, and equipment leases).
SBA Commercial Real Estate loans from $500,000 – $5 million from banks in the Majesty Strong Business Funding network can be used for the purchase or refinance of commercial real estate that is 51% owner-occupied.
SBA Paycheck Protection Program (PPP) Loans
The SBA also offered up to $10 million of Paycheck Protection Program (PPP) Loans in the wake from the CARES Act. This PPP loans were provided to assist small-sized companies who are struggling with the COVID-19 epidemic to ensure employees remain on payroll. The funds from these loans can be used to pay for payroll expenses as well as rent, benefits for employees utilities, and other costs that have been approved. If the funds are used in accordance with the terms of the loan, it could be repaid. The program was scheduled to close at the end of June in 2020. However, it’s being extended until August 8th 2020. Majesty Strong Business Funding has processed hundreds of PPP loans for banks we have in our network.
Where can I apply for an SBA loan?
In the past, small-scale business owners had one choice when trying to obtain an SBA loan: walk into the bank. But, many businesses may not realize that although one bank might say “no,” another will give a ‘yes’ to the borrower. Technology has the ability to aid small businesses to find an SBA loan company online which is the right fit. Indeed, Majesty Strong Business Funding has created online network of Preferred SBA lenders specifically for small-sized companies. With a variety of banks that have different requirements for credit on our platform we’ve been able help numerous applicants get an SBA loan that were previously turned down by local banks. What’s the secret behind our success? It’s not a mystery. Our advanced software allows us to match the borrower with the most suitable lender to fund and approve their loan. Instead of traveling from bank to banking, Majesty Strong Business Funding can help you to apply for loans quickly and effectively.
Documents required to apply for an SBA loan
The best strategy to follow before you apply for these loans is to be prepared. The more readily available your documentation is, the faster you’ll move through the process. The following is a checklist of the most commonly collected documents. It can be very helpful to work with your accountant or tax preparer to gather some of the financial documentation.
- Personal & Business Tax Returns
- Personal Financial Statements
- Profit & Loss Statement
- Balance Sheet
- Other Documents