There are many ways to secure a loan to start or expand your business through different lenders, and the U.S. Small Business Administration (SBA) helps businesses access funding by setting specific loan guidelines to reduce lender risk and enable easier access to capital.
There are several types of loans you can apply for through a lender, including 7(a) loans, 504 loans, and microloans.
- 7(a) loans — These are the most common SBA loans, and can be used for real estate, short- and long-term working capital, refinancing business debt, or to purchase furniture and other supplies. Your eligibility will depend on how your business receives income, credit history, and business location.
- 504 loans — This program provides long-term, fixed rate financing for major fixed assets that promote growth and job creation. To qualify for these loans, your business must operate for profit and have a tangible net worth of less than $15 million.
- Microloans — These are a good option for startups looking to expand, as they provide loans of $50,000 or less. They often require some form of collateral to be eligible.
Loans that are backed by the SBA have many benefits — they have competitive rate and fee terms, as well as lower down payments, flexible overhead requirements, and some loans require no collateral.
How to get an SBA loan
You can apply for an SBA loan through any local or online lender, which includes most banks and credit unions. At Republic Bank, the application and approval process for our express loans (term loans and lines of credit[MS1] ) is incredibly quick and easy. You can apply in as little as five minutes online and receive decisions within 24 hours. For commercial/industrial and real estate loans, you can quickly get in touch with one of our bankers to customize lending solutions that meet your goals.
Whether you need a loan of $50,000 or $1.5 million, we provide what your business needs to continually grow.
It’s important to make sure you research and analyze different lending terms, such as interest rates, fees, the annual percentage rate, and full payment schedule. Some lenders will try to require unfair terms that are deceptive, such as significantly higher interest rates and fees higher than five percent of the loan value. This is why it is beneficial to speak to a financial planner or accountant before signing a loan and agreeing to any unfavorable terms.
At Republic Bank, we have an expert team of bankers as well as financial advisors that can help lead you in the right direction and avoid any unwanted mistakes. Different loans are right for different businesses, so it’s crucial to compare all loan offers to find the right fit for yours. To speak to one of our team members and get a full list of eligibility requirements for your loan, give us a call at 800-526-9127, or apply online today!