Business Loans: Exploring SBA Loans

Small businesses usually face financial crunches are require a quick access to funds to fuel their growth. During this steady journey of growth, SBA loans provide a solid support. If you are a small business in search for financing and credit options, you most probably have come across this term. Small businesses prefer this loan for a number of reasons.

Let’s find out more about this small business loan or SBA loan and the agency behind this program.

Small Business Administration (SBA)

U.S. Small Business Administration (SBA) came into existence in 1953 in the federal government. Operating independently, this agency operates to protect the interests of small businesses and do other things to maintain and strengthen the economy of the nation. After almost 25 years, the agency formed its “Office of Advocacy” to strengthen SBA programs and also present the concerns of small businesses. Now the agency has a center in each state to deliver loans to small businesses.

SBA loans

These loans are meant to specifically finance small businesses of varying sizes, and can be used for varying purposes. The loans are backed by SBA, but not directly delivered by the agency.However, this backing reduces risks for lenders while also securing the interests of small businesses. Small Business Administration has networks with private lenders, who are selected to participate in the lending program after a rigorous certification, to provide the loans.

SBA loans can be used for working capital, purchasing equipment or inventory, refinancing existing debt, buying real estate, starting and expanding a business.

SBA loans are quite beneficial to small businesses for several reasons:

·         Easy access to funds

·         Favorable repayment terms

·         Small businesses who do not qualify for traditional loans can also apply for SBA

·         Lower interest rates

·         Manageable fees

·         Lower down payments

For more information on SBA business loans, get in touch with consultants at Pan Am Capital Group LLC. Get easy financing solutions and loans to fuel your business growth.