SBA Loans

An effective long-term financing option with low-interest rates for growing your business.

Benefits of a SmartCap SBA Loans

An SBA loan may be an option to consider if you’re planning a substantial expenditure to considerably expand your firm. These government-backed loans have the biggest borrowing limits, the longest periods, and typically the lowest interest rates of any small business lending program. They are more difficult to apply for and have higher qualifying standards, nevertheless. The professionals at SmartCap can be of assistance here.

Maximum borrowing amounts

Financing ranges from $50,000 to $10,000,000.

The longest possible terms

Three years to twenty-five years.

Lowest rates

Starting at 3.75%.

Increase ROI

Your cash flow won’t be negatively impacted by manageable monthly payments, and you won’t be unable to take advantage of other investment opportunities.

How It Works

Why are the rates, durations, and borrowing amounts on conventional small business loans higher, shorter, and lower? mainly because they carry a higher risk of default for the lender.

 

The Small Business Administration, an arm of the American government, is the key to SBA Loans. The SBA will often guarantee a sizeable portion of the loan, up to 85% for loans under $150,000 and up to 75% for loans over that amount. Lenders are ready to offer what are typically the best loan terms on the market for small firms because they run a lower risk of losing the full principal in the event of a default.

Are you eligible for SBA financing?

As you may anticipate, SBA Loans have more stricter eligibility restrictions than conventional small company loans. You’ll typically need to have yearly gross sales of at least $360,000, at least 10 employees, be in company for at least two years, have no bankruptcies or foreclosures in the last three years, and have no tax liens in addition to having good credit and constant healthy cash flow.