SBA Loan Terms And Rates
SBA loan terms and rates vary based on the type of loan your business secures. Common SBA loans include SBA 7(a), SBA 504, microloans and disaster loans. Learn more about these types of loans, their terms and their interest rates to determine which loan is right for your business.
SBA 7(a) Loans
SBA 7(a) loans are the most common SBA loans and can be used for a variety of purposes, from business purchases to refinancing.
According to the Small Business Association, "The specific terms of SBA loans are negotiated between an applicant and the participating financial institution, subject to the requirements of the SBA." While there is no minimum set, the maximum SBA 7(a) loan is $5 million.
SBA7(a) loans vary based on the agreement between the lender, the SBA, and the borrower.
SBA 504 Loans
SBA 504 loans are fixed-rate, long-term loans that are intended for funding construction projects or purchasing real estate or equipment. The maximum loan is either $5 or $5.5 million, depending on the size and nature of your business.
Businesses must be able to generate one job for every $65,000-$100,000 of the funds loaned, and the borrower must provide 10 percent down.
The SBA Microloan Program loans help small businesses and not-for-profit childcare centers grow in the early stages of development or expansion. The average SBA 504 loan is $13,000 and has a maximum availability of $50,000. Interest rates for microloans vary, but usually fall between eight and 13 percent.
There are four types of disaster loans:
- Home and personal property loans
- Business physical disaster loans
- Economic injury disaster loans
- Military reservists economic injury loans
The loan amount varies between a $40,000 maximum for home and personal property loans up to $2 million for all other disaster loans. Interest rates fall between four and eight percent.
Get More Information About SBA Loans From Claris Finance
Let the professionals at Claris Finance assist you in taking on the task of finding the right type of loan for your small business and helping you put together each item in the loan application checklist.
Contact us today and take advantage of our free service.
Small Business Administration: https://www.sba.gov/