Now that we’ve covered low dollar funding with SBA Express loans, let’s talk about higher dollar loans available from the Small Business Administration. Did you know that SBA 7(a) loans can fund up to $5 million?
Obtaining funding to start or buy a new business or franchise is one of the primary hurdles entrepreneurs face once they have chosen a business/franchise model. Maybe you’re looking at a franchise with higher franchise fees and initial costs. Maybe you’re considering buying more than one business. Maybe your inventory and equipment needs are significant. In all these cases, an SBA 7(a) loan is an ideal option to pursue, provided you meet a few criteria:
*Credit score 675+
*Business plan required
*Collateral typically required
*Cash injection ranging between 10-30 percent depending on the business and borrower
Small business owners who utilize SBA 7(a) funds are provided the following benefits:
*10-year term with generally runs congruent with most 10-year franchise agreements
*No balloon costs – amortizing terms
*Lower monthly payments
*Lower interest rates than conventional loans
* ROBS/401(k) Rollover funding can be used as the required cash injection
Tenet Financial Group specializes in SBA 7(a) loans and we can help you navigate the process and get you fully funded in a secure and expeditious manner. Contact us today to discuss your funding options – 1-888-901-3335 or email us at info@tenetfinancialgroup.com.