SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs. It also allows owners of high-risk businesses to receive the capital they require to grow their businesses.
What Is The SBA Lending Program?
The SBA lending program allows owners of high-risk businesses to receive the capital they require to grow their businesses. SBA lending also recognizes a broader assortment of resources that are not conventional and wouldn’t usually be qualified for collateralization.
To be eligible for an SBA Loan the business must be:
SBA Loans are accessible for:
Professional services; Doctors, Dentists, and Veterinarians
General and trade construction companies
Types Of SBA Loans:
The Purchase of an Existing Business or Franchise
Businesses with a record of success are good applicants for an SBA loan.
Collateralization necessities are typically less stringent than for conventional loans, and usually a lower down payment is necessary.
SBA lending is beneficial not only to the seller but so to for the buyer because many businesses could not be sold under any other terms.
Could be used for the purchase or upgrade an existing business land site or house needed to activate an owner-occupied business.
Also, can be used for new construction of a business facility, like a professional building, automotive shop, or freestanding location.
Loan terms up to 25 years.
For the purchase and use of capitalized assets that can be used as collateral for the loan.
Loan term up to 20 years
Need it for day-to-day cash flow like purchasing assets like such as, computers, office equipment and inventory loading.
Loan term ranges from 0-10 years.
Financial Benefits Of SBA Loans
Less money down
Longer payback Terms
No balloon payment required
Business start-up financing
There are some additional costs for SBA loans, but they are almost 100% financeable in the package with other customary fees that would be out of pocket for any other type of loan.
The Application Process
The Initial Interview –
When the time comes that you decide your business needs a loan, you should call the SBA lending office at (888)259-9786 or send an email to SBALending@comerica.com.
An SBA lending officer with the specific experience needed, within one business day will be assigned to your business and will contact you by phone.
Only a few banks have the experience needed for SBA lending, so it is key to save the most time and effort that you can in regards to obtaining the information needed for SBA procedures and regulations.
Taking out financial and business data routine to running your business.
Figuring out ways that the fund will help achieve success to your business goals. An experienced loan aid will allow time to listen to your objectives, understand how they will be achieved, and making it work by giving your information to the bank giving the loan and the SBA.
SBA Loan Packaging and Submission
SBA needs to go through a process for approval. After Comerica collects the information that is needed for internal bank approval, your loan is submitted for SBA approval.
Closing the Loan
Each loan has its own process for closing but it can be as simple as paying a visit to the bank or might be a little more complicated like a title-company closing.