Building Up Your Business With An SBA Loan In Stamford, Connecticut

Are you a small business owner interested in making upgrades to your company? If so, there is an unbeatable lending program available from the U.S. Small Business Administration, (SBA), that offers borrowers excellent rates and terms to help purchase a commercial real estate or to finance renovations to an existing business. If you are interested in boosting your business in Stamford, Connecticut, M1 Capital Corp is here to help. Continue reading to learn more about SBA loans and the documentation needed to apply.

SBA Loans: Basic Information

SBA loans are loans issued by participating lenders and are partially insured by the government. Since the lender is guaranteed to be paid back if the borrower is unable to repay the loan, they are seen as less risky to lenders, however, since the loan is affiliated with the government, the SBA loan application process can be somewhat lengthy. When a borrower does qualify for an SBA loan, they obtain great benefits, including the option of a 25 year fixed rate term, a loan-to-value of up to 90 percent, and competitive interest rates. There are several types of loan types, depending on the borrower’s need, including SBA 7(a) loans that offer a maximum loan amount of five million dollars, expedited SBA loans that offer quick access to up to $500,000 to help improve your business, and SBA 504 loans that can be used to purchase business assets such as machinery and facilities costing up to five million dollars. Although SBA loans cannot be used to purchase rental properties, they can be used to buy commercial property that is occupied by the owner and used primarily for the business.

What Type Of Documentation Is Needed To Apply For An SBA Loan?

Once you have decided on the type of SBA loan that will best suit your business goals, you can begin the application process. When applying for an SBA loan, lenders will want to see the following: that a business has adequate capital to cover its expenses such as the down payment and incoming funds to pay off the loan, decent credit, a source of collateral, and previous successful business experience. To begin the process, you will need to fill out the appropriate SBA loan form, and both a personal history and financial statement. A borrower must also provide the following when applying for an SBA loan:

● Financial statements from their business, including balance sheets, profit and loss statements, reconciliation of net worth, and projected financial statements.

● Records of any loans that the business owner has applied for.

● Original business license and/or certificate

● An overview of the business, its history, and how the SBA will be used to help the business.

● The business’s tax documents and business lease.

If you’re looking to expand your business with an SBA loan in Stamford, Connecticut, contact M1 Capital Corp today.