The small business administration loan is usually for the small businesses as you might have guessed. It is normal for you to be interested in the SBA loan is your business is picking up. You are supposed to have a good foundation of your business. You are supposed to have a steady income so that you can be eligible for the SBA loan for startups. On top of that, your business must have existed for a particular number of years. Your credit status will also determine if you can get the SBA loan for startups. You should make sure you check on all these things before you apply for the SBA loan for startups.
You are supposed to know the categories of the SBA loans that there is. You have to consider the intensity of the operations of your business when choosing the SBA loan to apply for. Make sure you get the details of each SBA loan type that there is. You will get different loan amounts from the various types of SBA loans for startups. Also the requirements for qualifying for the types of SBA loans for startups are different. You should make sure you match your business to the SBA loans to know the one you can go for. You can then grow your business successfully with the SBA loan. The types of SBA loans for startups are as discussed below.
First, there is the Microloan program. This SBA loan is meant for business owners that need a small amount of money to keep their business running. The Microloan gives a loan limit of around $50,000. The Microloan program is also a great option for the startup of non-profit organizations. The other type of SBA loans for startups is the 7(a) Loan. This type of SBA loan for startups is usually very flexible. The 7(a) SBA loan limit is $5 million. You are also given a period of 10 to 25years to pay the loan. You should make sure the SBA loan comes with good pay rates, and this site offers you more details such that you will discover more.
You should also consider choosing the CDC SBA loan. If you are sure you need a lot of money for the business, then you can choose the CDC. A business that wants to invest in machinery and also housing will need a lot of money and this is the kind that should choose the CDC option for the SBA loan. With this type of SBA loans for startups, you can also get up to $5.5 million, and this product will suit you. The time given to fulfill the CDC loan contract is usually between 10 years and 20 years. You are supposed to ensure you have reasonable interest rates for the CDC loan.