Of all of the funding options available to you when starting your first business, the SBA (Small Business Administration) 7(a) loan program is among the very best. The SBA 7(a) loan program concentrates on providing small business owners with help when they're looking for bank financing.
Bank financing is just one of the greatest kinds of startup financing available if you're able to get it. You can get more information regarding sba loan providers via https://onestopfundingshop.com/sba-loans/ .
Image Source: Google
The 7(a) loan application works like that:
- You venture into your bank to apply for a loan to start your small business.
- Your request to your lender to explain a SBA 7(a) loan.
- Complete a 7(a) application and provide a Business Strategy.
- The lender underwrites your program and business strategy to find out whether you are eligible for startup financing under SBA guidelines.
- If you are approved then your bank receives a warranty on the loan by the SBA. The SBA will guarantee up to 85 percent of a loan at 150,000 or less .
- To acquire the assurance the bank must adhere to SBA guidelines, therefore loan provisions are , interest rates are lower than they would be, and it is OK if you have been in business before.
End Result: You are happy because you get a loan to start your small business and the lender's joyful because 85 percent of the amount of the loan is guaranteed, which considerably lowers the bank's threat.