If you are a business owner who wants to refinance existing debt, increase inventory, purchase land or make upgrades, one thing is certain: You need money to do these things. For those who are short on extra cash, one popular source of funding that many entrepreneurs turn to is the United States Small Business Administration.
Through this agency, millions of Americans have used SBA loans to help them build the businesses of their dreams. In turn, their business contribute to local communities and help the US economy grow. See why you should try applying for one.
- Capital Becomes More Accessible
There is no doubt about it. Sometimes, accessing small business capital feels impossible. Funding through SBA can help change that. Because the US government backs the agency and it has a history of working with numerous banks, it has the capability of opening doors that are often closed.
- Down Payments Are Lower
Another plus side to this type of funding is the fact that initial down payment requirements are lower. If you are like many companies, you do not have a spare few thousand dollars to put toward down payments when emergency repairs or other expenses are necessary immediately.
- SBA Offers Valuable Resources
Loans are useful because they provide dollars, but another benefit of working with SBA comes in the form of other resources that the agency provides to business owners. For example, counseling, certification programs and other educational resources are available.
- Repayment Terms Area Flexible
Another major benefit of SBA loans is the unbeatable flexibility that comes with repayment terms. Unlike most private lending programs, SBA terms extend as far as 10 years for equipment, and for other expenses like real estate, terms stretch as long as 25 years.
- Interest Rates Are Reasonable
In addition, interest rates on loans through the SBA are reasonable. For new businesses or those investing in expansions, low costs can be a determining factor what trying to decide which loan programs to go with. When money is tight, low interest rates can be especially appealing.
- No-Strings-Attached Lending Provides Additional Flexibility
One reason that many business owners are fans of SBA programs is because of the flexibility of use that comes with many of the agency’s lending offers. Sometimes, you just need extra cash for miscellaneous business expenses and drawn-out explanations waste time. Usage terms for SBA lending tend to be quite broad.
If you are looking for flexible business lending, the SBA has several programs that may work for you. These are six reasons why many business owners turn to this resource for help.