Obtaining An SBA Loan In Queens, New York

If you are a small business owner, there is an excellent loan option available to you that can help finance the purchase or refinance of a commercial property, as well as the cost of business operations and equipment. Making certain improvements to your company will likely help boost your business significantly. If you are interested in advancing your small business in Queens, New York, M1 Capital Corp is here to help. Continue reading to learn more about the SBA loan application process and how the loan works to help business owners.

Understanding SBA Loans

SBA loans are insured through the Small Business Administration, which is a government agency. Since these loans are backed by the government and lenders are guaranteed repayment if a borrower is unable to pay off the loan, they are considered less of a lending risk and can offer very competitive interest rates and loan terms. In fact, SBA loans offer a twenty-five year fixed rate for a commercial property, which is unheard of in the real estate industry. It is important to note that business owners should expect to pay a down payment of 10 to 30 percent with an SBA loan.

SBA financing can be used for a variety of purposes, including: purchasing new property for a business, refinancing an existing business loan, making renovations to a property, covering operational costs, and buying equipment and supplies. SBA loans also offer a borrower great leverage, with a loan-to-value of up to 90 percent. There are several types of SBA loans available, depending on the borrower’s need, such as SBA 7(a) loans, SBA 504 loans, and SBA Express loans. You will want to work closely with your lender to choose the best SBA loan for your business situation.

Understanding The SBA Loan Approval Process

Depending on what type of SBA loan you choose to apply for, the processing time and eligibility requirements may vary. The application process does typically take longer than a traditional loan since it is affiliated with the government. The steps to applying first involve providing the necessary documentation, including your business credit report, your annual business revenue, an organized business plan and financial projections, evidence of collateral, and the amount of funds needed, and how the business will utilize the funds. Next you need to find a lender, and submit an application through them, which generally takes up to 30 days. After applying, you will wait for loan approval, which usually takes up to 90 days. If the loan is approved, and the contract is signed, you may still have to wait anywhere from 7 to 90 days to receive the funds. If you want to learn more about advancing your business with an SBA loan in Queens, New York, contact M1 Capital Corp today.