SBA Lending from approved SBA Lenders: $5,000 – $5,000,000
Is it worthy to consider SBA Loans for small business needs?
SBA loans are generally guaranteed by the Government and issued by authorized SBA lenders. Get long terms with the lowest rates for startup businesses.
There are many SBA lending options from lenders out there, but all have different underwriting criteria. Which one do you apply with? SEG Funding will need to help navigate the complexities for your business needs.
The SBA does not fund business loans directly themselves to startup or small business owners. They provide a guarantee, or backing, to the banks/lenders for the money that they lend to business owners. This backing helps the lenders by promising to pay a portion of the loan back if the borrower defaults on the loan. Therefore when someone applies for an SBA loan, they are in reality applying for a loan from the approved lender, the lenders' internal guidelines are structured in a way to meet or exceed the SBA’s requirement.
SBA Loans alleviate the risk associated with lending money to business owners who may not qualify for traditional loans. Certain programs are available to Woman-owned business, minorities, veterans and startup businesses. These SBA loans are not a hand-out though. The lenders receive internal ratings from the SBA. If enough of the SBA loans, given out by a lender, go into default, then the SBA will discontinue the program with that particular lender. Thus it’s imperative to know which lenders are, or aren’t, actively funding SBA loans. Some lenders lean towards small SBA loans, while others prefer the larger SBA loans.
What types of SBA financing options are available?
*7(a) loan program
*CDC / 504 Loans
*SBA Express Program
Which Loan is right for you and is your Business eligible? Contact SEG Funding today to know where you should begin.