Enhance Your Business With An SBA Loan In The Bronx, New York

If you own your own business and are interested in building it up by either renovating or buying a commercial property, you might want to consider financing the expense with an SBA loan. SBA loans, (or Small Business Administration loans), are partially insured by the government and offer great rates and terms. If you are looking to expand your company in and around the Bronx, New York, M1 Capital Corp can help. Continue reading to learn about the advantages that SBA loans can provide for your business.

SBA Loan Essential Information

The purpose of an SBA loan is to help improve small businesses and either allow an owner to open a brand new business or refinance an existing business loan. Since the Small Business Administration will reimburse a lender in the event that a borrower defaults on the loan, SBA loans are deemed as less of a risk to lenders and can therefore offer more flexible loan terms and lower interest rates. It is important to note that the loan application process for SBA loans can often take longer than that of other loan types because their eligibility requirements are stricter due to their association with the government. The amount of money a business owner can borrow depends on the type of SBA loan that is obtained. The most common type SBA loan is a 7(a) loan, which has a maximum loan amount of $5 million dollars. Other SBA loan options include SBA microloans, with a maximum loan amount of $50,000, and SBA disaster loans, with a max loan amount of $2 million dollars.

Benefits To Obtaining An SBA Loan

SBA loans offer several advantages for a borrower, and can be an excellent option when financing a business. First of all, SBA loans offer a borrower great leverage because banks typically allow around 70% leverage, but an SBA loan offers a loan-to-value of up to 90% the value of the property, meaning you can borrow more money while utilizing less of your own. It is also possible to get a twenty five year fixed rate for a commercial property with an SBA loan, which is practically unheard of in commercial real estate. In addition to buying or refinancing a commercial property, SBA loans also can help finance renovations to a business and provide working capital for daily operational needs of a company.

Qualifying For An SBA Loan

To qualify for an SBA loan, the typical eligibility requirements include:

● The business must demonstrate financial stability and have a significant amount of equity

● A minimum credit score of 620 – 640

● The business must be in operation for at least two years

● The business must be based in the U.S. and meet the SBA standards of small business classification

If you are interested in revamping your business with an SBA loan in the Bronx, New York, contact M1 Capital Corp today for a consultation.