➡️ Small business loans are one of the ways new entrepreneurs can get the financial support they need. The Small Business Administration (SBA) offers resources, including loans, to business owners to help them succeed and grow.
If you are starting a new business or acquiring a professional practice and are considering financing options, an SBA loan is an option worth exploring.
The SBA works with banks and other lenders to guarantee up to 85% of the loans they make, which reduces risk for banks and allows them to work with entrepreneurs they would otherwise have to turn away.
That’s a big advantage for entrepreneurs who are just starting out and don’t qualify for a traditional loan through the bank.
You may also like: Why are My Business Credit Score Important?
Three Key Advantages of an SBA Loan
🔹 Requirements may be less than traditional loans. If you are just starting a business or are buying a professional office, you most likely do not meet one or any of the requirements and are not eligible for a traditional bank loan.
Having a loan through your bank that is backed by the SBA gives your lender more flexibility in approving your application.
🔹 Longer repayment terms. The SBA may offer loans with longer repayment terms and higher loan limits. For example, with a real estate loan through the entity, a small business owner can get up to 25 years for loan repayment. And up to 10 years on an equipment loan.
🔹 Access to SBA resources. The mission of the Small Business Administration is to help small businesses grow and succeed. They offer education and mentoring opportunities such as SCORE, the Office of Women’s Business Ownership, the Office of Native American Affairs, and more.
🔎 Such resources are available to all small business owners, regardless of whether you have an SBA loan, and you can connect with the small business development center nearest you through the SBA website.
✅ At Wave Tax we offer you advice for boosting your finances and that of your business. Do not hesitate to consult us.
📝 You can contact us by e-mail at info@wavetax.us