Posted over 5 years ago

Are SBA 7a loans building Small Business in America?

As the new norm of slow stable growth is the US Economy, small business has been growing. Baby boomers that had lost their jobs during the last recession have started small business opportunities with the help of the SBA 7a lending process. Now that have established themselves they have begun to grow into the next level. Slow smart growth with new locations, new millennial employees that are trained in technology and ideas that are built behind a brand. An old brand with a new spirit or new brands that are expanding everyday with an SBA 7a loan to help leverage the growth opportunities. These small business’s had been started due to necessity and now offer a lifestyle. This can be seen with the SBA 7a business loan data provided by the USA Government. The SBA provides information on loans as well as the percentage of delinquencies.

What are the requirements for an SBA Loan?

There are some universal requirements to be eligible for an SBA loan for the business such as intend to operate for profit, be in the United States and have injected / invested equity include personal assets. A plan will be able to demonstrate a need for the loan and use the funds for a sound business purpose and finally not be delinquent on any existing tax debt to the IRS & U.S. government.

Business owners that have an established business for over three years and are looking to expand with new equipment, new marketing or buy a building can qualify for an SBA 7a commercial loan. SBA loans are for small business America with approval of a bank and guarantee of the US government for any defaults. If buying a franchise or open a new franchise and need money for equipment, real estate of building an SBA loan is the answer and can be completed quickly usually within 90 days.

The commercial loan will get you the building to buy for an auto repair shop, a restaurant, a bar, a laundromat or shopping center, typically harder to finance due to lender restrictions of environmental issues. Own a QSR franchise and want to buy another franchise QSR fast food franchise, SBA loans are there for the borrower to buy a business with experience to continue to grow.

Franchises are eligible, except when a franchiser retains power to control operations to such an extent as to equate to an employment contract; the franchisee must have the right to profit from efforts with ownership. These loans are still a great option for hotel and motel financing and have proven with many national brands to be an asset in growth. Consider financing the purchase of a hotel or motel and an existing hotel that is in the right location, now you to identify a franchise brand and plan a conversion with costs for major upgrade investments, the SBA loan can help change the flagged hotel.

What are the interest rates on an SBA 7a loan?

The SBA sets the maximum interest rates that banks can charge on loans. SBA 7a loans can have a fixed or variable interest rate. The best credit gets the best terms, interest rates. Professional services are available with a broker that can find the right SBA loan, they give many options with the SBA lenders and their programs nationwide. There are many lenders that have portfolio requirements to fit into their parameters for an SBA loan that they approve.

Are there Chicago Small Business SBA 7a loans?

Yes, in Chicago a huge number of property types, occupations and businesses are eligible for SBA financing including Attorneys, CPA's, Veterinarians, Manufacturing Facilities and Light Industrial Buildings, most "owner occupied" or "owner operated" businesses are funded with the SBA 7a plan.

Lets look at an example in Chicago, an SBA Commercial Loan is ideal for the financing of day care centers and child care facilities in suburban and urban settings. Let's say an owner of a child care or day care center business and there is a piece of property in town that is in an ideal location.

Owner injection of 10% Down and 90% SBA financing is available for preschool and private school construction, renovation, remodeling or refinancing. When taking a loan, there is often an origination fee, some lenders roll these fees into the total project. This fee supposedly covers the costs of the bank or financial institution of making the loan, including marketing costs.

In conclusion the SBA 7a loans helps build small business in American & Chicago growing business and creating jobs for the local economy.