Funding up to
SBA loans are guaranteed by the Small Business Administration. These competitive loans offer some of the lowest rates on the market as well as long repayment terms with the ability to borrow up to $5 million. The repayment term ranges from 7- 10 years based upon how the business uses the money.
SBA loans are best for strong credit borrowers who have been operating for 2+ years and are willing to work on the long application process to expand their business or refinance debt. Approvals can take up to 3 months.
Get Funding to Support Your Small Business Quickly with SBA Loans
Are you running a small business and facing financial problems due to changing market conditions? Do you need finances to buy inventory and meet the increase in demand for your products? If you are running a small business, you have a wide range of financing and credit options, and we can help you select the right one to suit your needs, goals, and pocket.
What are SBA Loans?
SBA Loans or Small Business Administration loans are a great option for many small businesses. These are low-interest long-term loans that are a viable choice for you if your business is suffering substantial financial distress or you just want to expand your business. The US Small Business Administration partially guarantees these loans, and participating lenders, generally banks, issue them. Usually, SBA loans have stringent lending agreements, but their low-interest rates and flexible terms make them a more attractive and accessible solution for most small businesses.
How SBA Helps Your Small Business Get Loan?
The SBA helps your small business get the funding you need through indirect lenders by providing a guarantee for a significant part of the SBA loan. This is what the participating lender contributes or it comes from the federal Disaster Loan Program. The SBA has provided a set of standards that lenders should meet. In case the lender follows all guidelines of SBA while the borrower defaults, the SBA pays the guaranteed amount to the participating lender.
At UFG Funding, our loan specialists can help you explore, evaluate and compare the available SBA loan options, help you process the loans, and maximize your approval chances. The amount of your SBA loan can range from $500 to $5.5 million, which you can utilize to fund business expenses such as inventory or commercial equipment purchase or working capital.
What are the Benefits of SBA Loans? Exclusively Designed for Small Businesses
SBA loans exclusively cater to small business owners’ financial needs. The SBA has partnered with various lenders to develop guidelines and assist the expansion and growth of smallbusinesses. These loans are specifically geared towards SMBs.
Highly Competitive Rates
According to federal regulations, the SBA partner lenders determine the interest rates of SBA loans according to the markup plus prime rate, also called the spread. The APR percentage includes interest rates along with all loan fees. There are considerable variations in the APRs between non-SBA and SBA lenders. We can help you compare the different APRs and get the loan at competitive rates.
Longer Repayment Terms
With SBA loans, you can enjoy longer repayment terms, which means that you can use the money to attend to your business needs and expansion. Your SBA loan term depends on the usage of your loan. Presently maximum loan maturities are ten years for inventory, working capital, and equipment loan and 25 years for real estate.
Can Cover Various Expenses
You can use SBA loans for various expenses. As explained by SBA, you can utilize an SBA loan for most of your business purposes, such as inventory purchase, business expansion, start-up, working capital, equipment, or real estate purchase.
Low Loan Fee
You need to pay an upfront guarantee fee when you take out an SBA loan. This is based on the amount of your loan, its maturity, and annual service charges. The SBA revises its loan fees every year. Our experts stay updated with the latest changes to the loan fees and ensure you get the loan with the lowest fees.
SBA loans offer secured funding. It means SBA agencies guarantee the lender for a percentage of loaned amounts. This lowers their risk, and if you fail to pay the loan amount, the financial institution has the authority to seize your assets.
What are the Requirements to Qualify for SBA Loans?
Personal Credit Score Your personal credit score should be high with good business credit to qualify for an SBA loan. You may not qualify for the SBA loan if any scores are low.
Should be Running Business for 2 or More Years
You should be running your business for at least 2 years or more to be eligible for an SBA loan. This clause can be a problem if you are a small start-up that needs capital to cover operational expenses. However, our financial experts can assist you in searching for options.
Although most small businesses get easy approval for SBA loans, the eligibility criteria are difficult to satisfy for many small business owners. The criteria for SBA loan eligibility are based on various factors, such as the nature of your business, its place of operation, ownership character, and others.
Despite the strict criteria, SBA loans are a great way to support your small business finances. UFG Funding serves as your trusted partner to provide professional assistance, as well as information regarding SBA loans and support. We can also assist you with preparing paperwork while applying for an SBA loan.
How Does SBA Loan Works?
SBA does not lend you money itself. It’s an agency that bridges the gap between the available financing options and businesses. The agency’s vetted network helps you narrow down the lender’s pool and select only those who are highly likely to support small businesses. When applying for SBA loans, small businesses need to prove their eligibility according to the SBA criteria. Once you receive approval from the SBA, you can directly approach SBA-approved lenders to initiate the loan process. One important thing to keep in mind is if your business gets defaulted for an SBA loan, you cannot apply for it again. So you should only choose the SBA loan program if you are sure that you can make the loan payments.
What are Types of SBA Loans?
The SBA loans have eight types to apply through SBA loan programs. Each option has its own advantages and requirements. Here are the types of SBA loans:
SBA 7(a) Loans provides a loan between $30,000 and $5million
SBA 504 Loans can provide financing up to $5 million
SBA 8(a) Business Development Loans can provide financing up to $4 million for services and goods and $6.5 million for product manufacturing
SBA Microloans can provide financing between $5000 and $50,000
SBA Community Advantage Loans provides up to $250,000 financing for business expansion
SBA CAPLines can provide financing up to $5 million
SBA Export Loans provides up to $5 million in financing
At UFG Funding, we work with you to help you select the right option for your precise business needs. We weigh the advantages, drawbacks, and requirements of each SBA loan type, providing you with an objective and unbiased comparison. We ensure that you choose a suitable SBA loan that helps you achieve your goals and support growth and expansion. Get in touch with us to explore your options!
For strong businesses with good credit history & scores above 700+
Low Interest & Monthly Payments
Comfortable interest rates with easy monthly repayment terms.