{"id":779,"date":"2018-06-06T15:00:09","date_gmt":"2018-06-06T19:00:09","guid":{"rendered":"http:\/\/www.atyourbusiness.com\/blog\/?p=779"},"modified":"2018-06-06T15:00:09","modified_gmt":"2018-06-06T19:00:09","slug":"is-a-small-business-administration-loan-right-for-you","status":"publish","type":"post","link":"https:\/\/www.atyourbusiness.com\/blog\/is-a-small-business-administration-loan-right-for-you\/","title":{"rendered":"Is a Small Business Administration Loan Right for You?"},"content":{"rendered":"

Bank loans are great if you are starting up a business and need funding. That said, there are various types you can choose from. Find out if a small business administration loan is right for you in this article.<\/b><\/h4>\n

Only about 20%<\/span><\/a> of small businesses actually make it past their first year in operation.<\/span><\/p>\n

With the cost of paying employees, getting the equipment and office space you need, and even just having enough capital, it’s not hard to see why.<\/span><\/p>\n

You may have an incredible idea for what you know could be a profitable business.<\/span><\/p>\n

However, what you don’t have are the funds to get it off the ground.<\/span><\/p>\n

A Small Business Administration loan sounds exactly like the kind of solution you’ve been on the hunt for when it comes to funding <\/span>.<\/span><\/p>\n

But what is an SBA loan, and is it <\/span> for you?<\/span><\/p>\n

Keep on reading this post to find out, and to learn what might happen if you default on your SBA loan.<\/span><\/p>\n

What is an SBA Loan?<\/b><\/h2>\n

SBA loans are loans that are guaranteed by the federal government.<\/span><\/p>\n

Usually, the guarantee is up to 85% of loans that are under $150,000, and about 75% of those that are more than $150,000. While they’re certainly popular, they can also be difficult to get because of these guarantees.<\/span><\/p>\n

They are designed to help businesses get off the ground without taking on more debt than they’ll likely be able to pay back within a reasonable amount of time.<\/span><\/p>\n

The main types of these loans is called a 7(a.) They can be in amounts of up to $5 million, and they SBA lenders usually include a credit lender or a bank. They work to help you buy the equipment you need, to manage expansion projects, and much more.<\/span><\/p>\n

SBA express loans are incredibly popular among a variety of small businesses because they offer lower rates of interest than other types of loans.<\/span><\/p>\n

There is also a type known as an SBA disaster loan. Here, you’ll be able to borrow up to $2 million. This is meant to help your company to recover <\/span>after a natural disaster<\/span><\/a> or another kind of emergency.<\/span><\/p>\n

There are also 504 loan programs, which also can go all the way up to $5 million.<\/span><\/p>\n

These are a great fit for businesses that need to <\/span>, equipment, and even other things for their business. These 504 loans are given by non-profits or by SBA lenders in the private sector.<\/span><\/p>\n

Is a Small Business Administration Loan Right for You?<\/b><\/h2>\n

Now that you have a better understanding of what an SBA loan actually is, let’s take a moment to help you figure out if applying for one is the right move for you.<\/span><\/p>\n

If you were unable to qualify for a more traditional bank loan, then you should certainly think about applying for an SBA loan. Just make sure that your credit history is strong enough to help you to increase your chances of being approved.<\/span><\/p>\n

Also, be aware that you will need to meet a few key criteria if you expect to truly be approved for an SBA loan.<\/span><\/p>\n

According to the industry that you’re planning to work within, you’ll need to review the specific criteria and make sure that you’re actually eligible for this type of loan.<\/span><\/p>\n

This often has to do with your business plan, the number of people that you plan to employ, and your expected revenue and overall profit timeline.<\/span><\/p>\n

If you’re able to fund your business based on the money that you have in your own bank account?<\/span><\/p>\n

You may also not be eligible for an SBA loan.<\/span><\/p>\n

Remember, because the interest rates are so low — and because everyone wants these kinds of loans — not everyone who applies for one is going to get approved.<\/span><\/p>\n

What if you Default on your SBA Loan?<\/b><\/h2>\n

Sometimes, no matter how hard you try to make your SBA loan payments on time, you can end up defaulting on your loan.<\/span><\/p>\n

In general, you should expect to get a call from the bank that lent you the money. They’ll talk to you about the nature of your default and how you can fix it. If you still can’t make the payments, then the collection process that you and the lender agreed on will take place.<\/span><\/p>\n

You may need to sell business assets, your home, or anything else that you put up for collateral.<\/span><\/p>\n

If the lender has claimed all the assets they can and the loan still isn’t repaid, they’ll get in touch with the Small Business Administration.<\/span><\/p>\n

Then, most of your loan will be repaid by the federal government. Then you’ll need to start working with the SBA itself.<\/span><\/p>\n

You may be able to pay them less than you actually owe.<\/span><\/p>\n

In order to do this — or to learn how to avoid the default process altogether — we suggest that you meet with an attorney who specializes in <\/span>SBA loan defaults<\/span><\/a>.<\/span><\/p>\n

Ready to Apply for a Small Business Administration Loan?<\/b><\/h2>\n

From learning what can happen if you don’t make your SBA loan payments to figuring out if a Small Business Administration loan is the right choice for your company, we hope that you’ve found this post helpful.<\/span><\/p>\n

As with any loan or funding opportunity, it’s important that you weigh all of your options before you make any kind of final decision.<\/span><\/p>\n

Are you really getting the right type of loan for your company?<\/span><\/p>\n

Our website and blog can help you to be sure.<\/span><\/p>\n

Spend some time on our site to learn about the different types of financing options that are available to you.<\/span><\/p>\n

We can’t wait to help you to make your <\/span>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Bank loans are great if you are starting up a business and need funding. That said, there are various types you can choose from. Find out if a small business administration loan is right for you in this article. Only about 20% of small businesses actually make it past their first year in operation. With […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"_links":{"self":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/779"}],"collection":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/comments?post=779"}],"version-history":[{"count":1,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/779\/revisions"}],"predecessor-version":[{"id":781,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/779\/revisions\/781"}],"wp:attachment":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/media?parent=779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/categories?post=779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/tags?post=779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}