SBA LOANS
The Small Business Administration (SBA) offers various loan programs to support small businesses and franchises, providing access to capital that might be challenging to obtain through traditional lending. SBA loans, whether through the Express Loan Program for faster access to smaller amounts, the standard 7(a) Loan Program for a wide range of substantial business needs, or the 504 Loan Program for fixed asset purchases, offer crucial financial support to small businesses. Each program caters to different needs and provides flexibility and access to capital that can help businesses grow and thrive.
Requirements:
Cash or 401(k) ROBS contribution of 10-30% of the total project
Favorable credit score of 680+
No current credit collections, bankruptcies, or other pending litigation
Must be US citizen or permanent resident
FAQs
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SBA funding refers to loans provided by banks and other lenders but guaranteed by the Small Business Administration (SBA) to help small businesses, including franchise businesses, access financing they might not otherwise qualify for.
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U.S. citizens or legal residents who own or operate small businesses can apply for an SBA loan if they meet eligibility requirements.
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SBA funding offers franchise businesses lower down payments, longer repayment terms, and competitive interest rates compared to conventional loans, making it an attractive option for franchise owners.
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For SBA 7(a) loans, the maximum loan amount is typically $5 million. However, for projects involving the purchase or construction of commercial real estate or heavy machinery and equipment, the SBA's 504 loan program offers higher loan limits.
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SBA 7(a) loans are versatile, covering diverse business needs such as working capital, inventory, real estate, equipment, and other soft costs. SBA 504 loans are tailored for acquiring fixed assets like real estate or heavy machinery. The 504 program involves a partnership between a Certified Development Company (CDC), a lender, and the borrower, facilitating larger financing for such specific assets.
SMALL BUSINESS ADMINISTRATION LOANS
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SBA EXPRESS
Loan amounts up to $150,000
SBA's fastest and most efficient funding option for working capital, franchise fees, and project costs.
Not a good choice for construction or real estate projects
Expect to contribute 10% in personal or ROBS 401(k) funds
No personal collateral is required
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SBA 7a
Loans amounts up to $5 million
SBA's most popular and inclusive loan and includes virtually all business expenses and project costs
Expect to contribute 10-30% in personal or ROBS 401(k) funds
May require personal collateral for loans based on the specific project
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SBA 504
Loan amounts up to $5 million plus
SBA's loan product that is reserved for real estate and equipment
Expect to contribute 10-20% in personal or ROBS 401(k) funds
The most attractive rates, but requires approval from the bank, CDC, and SBA
Curious what your financial situation looks like from a funding perspective?
Use our Funding Calculator to assess your starting point and determine the most suitable funding options for your business, whether is be ROBS, SBA 7(a) loans, or other types of funding.
Contact us today!
Let's take the first step together to turn your entrepreneurial dreams into a reality!
At Tenet Financial Group, our expert team will :
Walk you through your available funding options.
Assist you in selecting the best option for your situation.
Help you navigate through every step of the complex funding process.