Home | finance | How SBA’s Guaranteed Loans Are Beneficial For Small Businesses

How SBA’s guaranteed loans are beneficial for small businesses

How SBA’s guaranteed loans are beneficial for small businesses

Running a small business during financially turbulent times can be extremely trying. But, monetary aid, specifically small business loans, can definitely make things easier for both the business and its employees. Funded and guaranteed by the federal government, 7(a) loan programs have been designed by keeping business-owners’ best interests in mind. Here are answers to some commonly asked questions regarding small business loans:

What is an SBA loan?

Loans by the Small Business Administration (SBA) are guaranteed business loans that are given to small businesses by participating lenders. Since these loans are guaranteed by the federal agency, they are much more manageable than those provided by private agencies. SBA loans also have the added advantage of lower interest rates. These loans are available in a broad range in order to suit specific business needs. You can get a loan that ranges anywhere from $500 to $5.5 million to fund your entrepreneurial adventure. Further, the loan can be accessed in the form of fixed assets or working funds.

Types of SBA loans

SBA loans are available in many types. Some of them include—SBA flagship loans, microloans, SBA disaster loans, and 504 loans, among others. Each of these loans comes with different funding criteria.

What makes SBA loans beneficial?

The money for SBA loans is funded by banks, private-sector companies, and other lenders, but the SBA guarantees a portion of these loans, which means that if you fall short on your payment, then the federal agency has you covered. This gives you the flexibility to take the loan for longer periods with lower monthly payments.

What are the eligibility criteria to apply for an SBA-guaranteed business loan?

Needless to say, the SBA has a set of strict standards by which it chooses its borrowers. They have four basic conditions:

  • The owner of the business should have invested their own time and money
  • The business located and operates in the country
  • The business must have exhausted all other financing options
  • The company must be a profit-making one

The guaranteed business loans are also given to businesses based on their income, ownership, and operational area, among other criteria.

How do you apply for a guaranteed business loan with the SBA?

Applying for an SBA loan is rather simple. The process requires you to visit SBA’s official website, where you can access the loan application checklist that contains the list of all the documents that are required to apply for a business loan.

You can also apply for a loan through SBA’s financing platform, which is known as SBA Express. If your credit and financial situation are in order, then the SBA can even fast-track your loan request.

You can also apply for a guaranteed business loan through a bank. But, this would require extensive research on your part to verify which banks are known for processing SBA loans and their terms and conditions, among other details.

Our
Blog.

Volvo XC90 – Features to note before the Black Friday sale

Volvo XC90 – Features to note before the Black Friday sale

The Volvo XC90 is a midsize hybrid SUV that combines everyday practicality with a touch of refinement. This model has a premium feel, thanks to its updated exterior styling and a thoughtfully upgraded cabin. Additionally, the car comes equipped with all-wheel drive across all variants, and its powertrain lineup includes turbocharged engines and a plug-in hybrid option. Those interested in the Volvo XC90 should consider its features to make an informed decision during the Black Friday sale. Pricing The starting price for the 2025 XC90 is set at over $58,000. Going up the trim level means buyers can expect to spend up to $83,000. The lineup has different starting prices for each trim level, with the T8 Ultra Bright Theme, T8 Plus Bright Theme, and T8 Core Bright Theme as the highest-cost models. At the lower end of the lineup’s price spectrum are B5 Core Bright Theme, B5 Plus Bright Theme, and B6 Core Bright Theme. Fuel economy The Volvo XC90 comes with all-wheel drive as standard, regardless of the powertrain. The entry-level models have a 2L 4-cylinder turbocharged engine producing 247 horsepower. The mid-level B6 variants deliver 295 horsepower. The higher T8 models are paired with a plug-in hybrid system, providing an electric range of up to 33 miles and a combined fuel economy of 58 mpg.
Read More
5 Black Friday Mistakes To Avoid This Holiday Season

5 Black Friday Mistakes To Avoid This Holiday Season

5 Black Friday Mistakes To Avoid This Holiday Season Black Friday is upon us once again. It’s the day we all try to save a little money, get the best deals, and spend our entire day in stores trying to find one last bargain before the end of November. But many people end up overspending. If a Black Friday bargain has ever ripped you off, these tips will hopefully prevent anyone from becoming a victim too! Spending more than you can afford The foremost thing to do when planning for Black Friday is to set a limit on what you can afford to spend. Anything beyond this should be considered an impulse buy and avoided at all costs. Once you’ve decided how much money you want to spend on Black Friday, it’s crucial to stick with that number and avoid impulse buying. It means avoiding debt and spending more than what’s in your bank account — even if it seems like there isn’t enough left over after paying bills or other expenses such as rent or utilities! Saving all your shopping for Black Friday If you have not allotted a lot of money, this holiday season can be overwhelming. When you’re feeling overwhelmed, it’s easy to do something that will make things even more complicated:
Read More