Articles & Updates
Put the Power of SBA Loans to Work for Your Business
With Help from Your Community Bank
Keeping your business running smoothly and achieving your growth goals sometimes takes external support as a small business owner. The Small Business Administration (SBA) works with banks in Ohio and nationwide to offer government-backed loans to small businesses. The SBA and community banks like Consumers National Bank, an SBA award-winning bank, provide a range of financing for companies, including:
- 7(a) loans
- 504 loans
- SBA Express lines of credit
- SBA Veterans Advantage loans
Here’s a summary of each type of loan to help guide the conversation with your lender about which option will meet your needs.
The SBA 7(a) multi-purpose loan
The SBA 7(a) loan, one of the more popular financing solutions available to for-profit companies, supports up to $5 million for many purposes, including:
- Supplies, materials, furniture, and fixture purchases
- Working capital for short-term or long-term periods
- Refinancing other business debt
- Buying, expanding or acquiring a business
- New business construction
While most SBA 7(a) loans have terms between 5 and 10 years, funds used to purchase real estate have terms up to 25 years.
The 504 Certified Development Companies (CDC) loan
Do you need significant fixed assets like land, buildings, or heavy equipment or machinery for your small business? A 504 loan can help you access up to $5 million for investments and modernization tactics that help develop your business and create jobs.
504 loans are long-term, up to 25 years, with fixed interest rates through CDCs, non-profit community organizations that strive to reignite local areas.
Microloans to re-energize your business
Sometimes, you need a smaller infusion of cash to help repair, rebuild, or re-open your company. SBA microloans are usually less than $50,000 with funds available for inventory, equipment, or supplies. Repayment terms for microloans average 6 years, with competitive interest rates and low fees to support start-ups that may not qualify for a standard small-business loan.
SBA Express lines of credit for fast financial support
A line of credit provides business owners with access to funds that they draw on when needed. You pay interest on the amount of money you borrow from the reservoir and repay or rest the line of credit within 7 years. As the name implies, SBA Express lines of credit have accelerated approval times compared to other types of SBA-backed financing.
Funds are available up to $500,000 for qualified businesses to support cash flow, invest in inventory or supplies, fund company improvements, or purchase real estate.
Veterans Advantage Loans for active or retired military families
The SBA wants to reduce financial barriers to business ownership among veterans and their families. The Veterans Advantage Loan program provides access to capital with no-to-low fees for loans less than $500,000. Funds are available for working capital, expansion, or purchasing equipment, inventory, or supplies.
Loans greater than $500,000 up to $5 million are also part of the Veterans Advantage program. The larger loan amounts carry fees but still offer favorable rates compared to financing options for non-veterans.
Talk with Consumers National Bank to find the SBA loan that’s right for you
Contact the Consumers National Bank business lenders to discuss your 2022 growth plans. We’ll work with you to find a financing solution that helps you reach your goals.