SBA Loans You Should Know About in 2024

Small Biz Ahead

Episode Notes

Key Highlights

How To Get A Loan From The Small Business Administration (SBA)

• The Small Business Administration (SBA) in not a lender, but they can guarantee money that's being lent to out by a network of their preferred and certified lenders around the country.
• There's two loan programs that small business owners should know about: 7A loans and 504 loans
• 7A loans are the most popular type of small business loan program from the SBA. You can borrow up to $5 million from a bank that's guaranteed by the SBA. You can use it to acquire, refinance or improve buildings, tools or equipment. Or as working capital like cash and inventory. You can also use this money to refinance existing debt or invest in business expansion.
• 504 loans are long-term, fixed rate financing for major fixed assets that promote business growth and job creation. You can borrow up to $5.5 million with a 504 loan. The 504 loan program is more designed for capital improvements, machine, equipment and property.
• With both programs, you have the ability to negotiate fixed or variable rates of interest on these loans. The terms for payback will vary depending on what you negotiate with your banker.

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