As an entrepreneur, you dedicate yourself every day to making your vision for your small business a reality. You produce innovative new products, train and supervise hardworking employees, and provide exemplary service to customers. With so much of yourself and your resources invested in your business, it’s easy to think that success is guaranteed.
In fact, that’s only the beginning of the entrepreneurial journey. Almost every small business owner will need an infusion of working capital in order to expand or sustain their business. Small business funding can come from a variety of sources including term loans and lines of credit. Another well-known option is a loan secured by the U.S. Small Business Administration (SBA).
An SBA loan is a long-term, low interest rate loan guaranteed in part by the government. Value One has helped plenty of small business owners successfully secure SBA financing and we can do the same for you.
SBA Loans for Small Businesses
The SBA is a federal agency that helps entrepreneurs develop their businesses through education, and increased access to funding and contracting opportunities.
The term “SBA loan” can be somewhat misleading because, in most cases, the SBA doesn’t actually lend money directly to small businesses. In fact, banks that participate in the SBA loan program lend the money to small businesses and the SBA guarantees a portion of the loan using government funding. This guarantee reduces the financial risk to the bank and gives lenders more incentive to provide loans to small businesses.
Because they are backed by the government, SBA loans are typically easier to access, more affordable, and have less stringent credit guidelines. SBA loans offer lower interest rates and extended repayment terms compared to traditional business loans.
Still, not every small business qualifies for an SBA loan. Therefore, it’s important to understand how the SBA loan process works and the eligibility criteria for securing an SBA loan for your small business.
Ready to find out if you qualify for an SBA loan?