SBA Business Loan an Introduction

You are one of the guy who is looking for money and with that sum you would like to start a business.It is a dream you have and want to fulfill the long standing wish.Burning desire is there inside and looking for a helping hand.Then this blog and this post is for you.

When you are having a good business plan it is easy to get financial aid from leading bankers or lenders.In the wast and open world with money and opportunities getting money for your small business is not all going to be a serious problem.

Basing on your needs and Colette that you can provide there are different kinds of loans possible.One of the prominent one is SBA loan program.The lower interest rate offer on this kind of loan is advantage to you and won't put in lot of burden over long term and when you are paying them back.
(picture resource http://www.flickr.com/photos/drbeachvacation/3544868360/)
SBA Loans are offered by private lenders and they are guaranteed by agency called SBA that is small business administration. One of the major loan program is under 7(a) .This is offered to start up and existing business and is quite flexible.As mentioned it is delivered through commercial lenders.

Small business Administration is a agency administered by federal agency and is started in the year 1953.It helps in getting financial aid over long term to the qualified people via private lenders and bankers.The agency has no money to give you directly,but gives guaranty on behalf of it.

7A program gives credit enhancement to the lenders who are participating people in the program.Another famous program is 504 loan program and it is run through certified companies.

The loan obtained from SBA 7A can be used for the purpose of working capital,acquiring assets or refinancing the existing debits.Each kind of offer has its own time limit.

1.Real estate loans taken under SBA shall be paid with in twenty five years.
2.Equipment loans are limited for fifteen years.
3.Business acquisition loans for ten years.
4.Working capital loans has a period of seven years.

The maximum allowed loan under sba 7a loan is $200000.How much loan that you will get depends on number of employees that you have or the revenue that you have.In general a business with less than 500 employees or having a revenue of less than $ 6 million is eligible for small scale business loans from the agency.There will be special purpose loans inline with public purpose targets wit respect to federal objectives.


( picture curtsy http://www.flickr.com/photos/speakerpelosi/4990044435/)

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