The small business administration loan is usually for the small businesses as you might have guessed. You are probably wondering how one can qualify for the SBA loan if you are just starting your business. 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 score as the business owner also matters when it comes to qualifying for an SBA loan for startups. You should make sure you check on all these things before you apply for the SBA loan for startups.
You should also understand the different types of SBA loans for startups that one can apply for. This depends on the size of your business and what your needs are. The types of SBA loans for startups vary. You will be eligible for a specific amount in each of the SBA loans. You will also have to meet different standards so that you can get the SBA loans. Your choice for the SBA loan for startups should be influenced by the business capability. You can then grow your business successfully with the SBA loan. Here are the SBA loans that you can go for.
First, there is the Microloan program. Here, the small businesses that require a relatively small loan can apply for it. 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. Another type of SBA loan that you can choose is the 7(a). You can accomplish a lot using the 7(a) SBA loan, and all about the deal will suit you. You can apply for a loan of $5 million if you chose the 7(a). The 7(a) loan terms are between 10 to 25 years. You will also be free to negotiate for a fair interest rate.
There is also the CDC type of SBA loan. The CDC option is meant for businesses that can only operate with a large budget, and you will learn more about this service. Large budgets in a business can come out of the purchase or renovation of buildings and also machines. The CDC SBA loan allows the business owner to apply for a loan of up to $5.5 million. You will also have a loan term of 10 to 20 years. You should also make sure you get a favorable interest rate for the SBA loans for startups.