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Is an SBA Loan a good option for my business?

published at: August 13th, 2019

Q: Is an SBA Loan a good option for my business?

A: Absolutely, yes. 

In the world of business lending all loan options (and there are many!) have their pros and cons. 

In my career as a banker I can tell you that I have seen many businesses grow, expand, and benefit from an SBA loan. 

Unless your intention is to purchase real estate and you do not plan to occupy more than 51% of that real estate an SBA loan is likely a great option for your business. 

Q: What is the "SBA?"

A: The U.S. Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the SBA is to "maintain and strengthen the nations's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters." The agency's activities are summarized as the "3 C's" of capital, contracts, and counseling.

Q: How does SBA loans work?

A: SBA loan are made through banks and other financials institutions who partner with the SBA. The SBA provides a government-backed guarantee on part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008.

Q: What Kind of loans does the SBA guaranty?

A: You name it: equipment purchases, partner buyouts, real estate purchases, business acquisitions, tenant improvement loans, business expansion, and working capital loans to name a few. 

If you have a loan need for your business please call us at 619-200-0351 or email us at info@americanprofitconsulting.com to have a one on one conversation around your business and your future goals. We can assist making SBA the easy way to attain the business funding you need. 

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