Boosting Your Company With An SBA Loan In New York City

Are you a small business owner and operator that’s interested in taking your company to the next level, and looking for a financing option that can help you meet your goals? If so, you might want to consider an SBA loan, which is a unique mortgage that offers great terms and rates for small business owners. If you are looking to expand your company in New York City, New York, M1 Capital Corp can help. Read on to learn more about the advantages of using an SBA loan to make improvements to your business.

SBA Loan Basics

SBA loans are partially funded by the government, and since lenders are guaranteed to be paid back if the borrower defaults on the loan, they are less of a risk for borrowers. This is why SBA loans can offer such competitive rates and terms. SBA loans can be used for a variety of ways to help improve a small business. They can be used to purchase or construct a commercial real estate property, they can be used to refinance an existing business loan to help pay for other business expenses, and they can be used to fund equipment and other business operational costs. There are several different types of SBA loans, so you will want to work closely with your lender to select the option that will have the greatest impact on your business. The most common types of SBA loans include:

● SBA 7(a) loans – These loans typically have a variable interest rate, have a maximum loan amount of $5 million dollars, and can be used for the purchase or renovations of commercial real estate, equipment, inventory, and operational costs.

● SBA Express loans – These loans offer a faster processing time, and have a maximum loan amount of up to $500,000.

● SBA 504 loans – These loans typically have a fixed interest rate, and can be used for the same purposes of an SBA 7(a) loan. They also have a max loan amount of $5 million dollars.

Why Should I Choose An SBA Loan Over A Conventional Loan?

SBA loans offer a borrower several advantages such as competitive rates and terms that many conventional loans are unable to offer. An SBA loan can offer a borrower great financial leverage because they have a loan-to-value of up to 90% of the value of the property. They also can offer a twenty-five year fixed term for a commercial property, which is almost unheard of with most conventional loans. Additionally, SBA loans can be used for a variety of purposes; a borrower can use the funding to help pay for inventory, business equipment, commercial real estate, business operational costs, and any outstanding debt the business may have. If you are interested in enhancing your business with an SBA loan in New York City, New York, contact M1 Capital Corp today for a consultation.