Obtaining An SBA Loan In White Plains, New York

If you are a small business owner and are thinking about expanding your business by buying or renovating commercial real estate, consider financing with the U.S. Small Business Administration, (or SBA), lending program. This amazing program offers the same long-term, fixed-rate funding that bigger firms benefit from. If you are looking to amplify your business in White Plains, New York, M1 Capital Corp can help. Continue reading to get a general overview of how SBA loans work and how they can help improve your business.

How Do SBA Loans Work?

SBA loans are partially backed by the government and issued by participating lenders. Although they have strict lending requirements, business owners who qualify are able to get low interest rates as well as flexible terms. A borrower that qualifies for an SBA loan has a great deal of leverage since an SBA loan’s loan-to-value can be up to 90% the value of the property. There are many types of SBA loans available, including:

● SBA 7(a) loans – Fund the purchases of equipment and supplies, new real estate, and business expansion. They have a maximum loan amount of up to $5 million dollars.

● SBA 504 loans – Fund the purchase of fixed, long-term assets such as facilities and machinery. They have a maximum loan amount of up to $5 million dollars.

● SBA Express loans – Offer quick funding for real estate, business expansion, and equipment purchases. The maximum loan amount is $500,000.

M1 Capital can work closely with your business to determine the best loan option for your situation.

What Types Of Rates And Terms Are Available With An SBA Loan?

A major advantage of an SBA loan is that it can offer longer terms, meaning the borrower has more time to pay the loan off, and more capital available to spend on your business needs. The current maximum amount of loan maturities are ten years for equipment and inventory or capital loans, and twenty-five years for real estate loans. SBA loans are also highly sought after for their excellent interest rates, offering affordability to a wide range of business owners.

What Can SBA Loans Be Used For?

SBA loans can be used to help pay for several business enhancements, such as covering start-up expenses, construction costs, the funding of business expansions, and new commercial real estate purchases. SBA financing can also finance renovations to existing real estate and provide funding for day-to-day business operation needs. If you are interested in learning more about SBA loans in White Plains, New York, contact M1 Capital Corp today for a consultation.