Starting a business can be a daunting endeavor. Small business loans (SBA) are a way to acquire funding for specific small business needs. This includes both securing money to buy real estate for your business and securing operating capital.
If you would like to discuss SBA loan options with a qualified broker, the team at POM (Peace of Mind) Capital & Funding Services have the knowledge and experience to guide you through every step of the process.
Advantages of SBA Loans
There are many advantages to securing an SBA over other loan options. SBA loans are often more flexible with repayment options and have longer terms than a conventional loan. An SBA loan will typically have lower down payments with more cash flow options. The specifics of your loan will be customized depending on your individual needs.
- Use a private lender
- Guaranteed up to 80% of the full SBA loan
- Reduce risk for the lender
Since SBA loan programs vary depending on your specific needs, having the guidance of a knowledgeable broker is essential to securing the loan best suited for you. The brokers at POM Capital & Funding Services know how to create an SBA loan that works for your business and repayment needs.
Criteria For SBA Loans
There are certain criteria you must meet before you can apply. Assets such as property, equipment, marketable merchandise, a guarantor, stocks, and even life insurance policies can be used as collateral. Not only must you present a solid business plan and strategy, but you must also prove that your company will be successful and able to compete in your chosen industry.
- Business must meet the small business requirements for your industry
- The business must be independently owned and operated
- Not dominant in its field
- Meet employment or sales standards developed by the agency
Not all businesses qualify for an SBA. Companies related to gambling, lending, investing, media, recreational, nonprofit, or speculative businesses are not covered by SBA lenders. Additionally, lenders will not approve loans to purchase property as an investment or for future sales. Funds cannot be used to refinance or pay off creditors. Loans are earmarked solely for the business for which it was established, meaning you cannot start an additional business with these funds.
Do You Need an SBA Loan?
At the POM Capital & Funding Services, you can schedule a consultation with one of our qualified brokers to learn more about your options and what to expect when securing an SBA loan. Coming prepared with the right financial documents and your business model will help your broker become familiar with your circumstances to get you the best loan possible.
If you would like to discuss your SBA loan options with an experienced broker, call POM Capital & Funding Services at (631) 354-9290 or write to us at [email protected] to schedule a free consultation with our team.
POM Capital & Funding Services is a leading provider of alternative funding solutions for businesses of all types and sizes, offering commercial finance solutions and products to businesses in the Centerport, New York area and throughout the state of New York.