Loans are available up to $2 million, with repayment terms as long as 30 years. Business Physical Damage Loansīusiness physical damage loans cover business losses not covered by insurance. Companies can qualify for an EIDL and a physical disaster loan, but the maximum combined borrowing limit is $2 million. Businesses can use EIDL funds to meet financial obligations and cover necessary operating expenses. Repayment terms go up to 30 years, with interest rates capped at 4% annually. Loan amounts can reach $2 million, but ultimately are determined by the applicant’s ability to repay the loan. Economic Injury Disaster LoansĮconomic Injury Disaster Loans (EIDLs) are available to eligible small businesses, small agricultural cooperatives and private nonprofit organizations that suffer substantial economic injury due to a disaster. In some cases, they’re only available to business owners unable to obtain sufficient credit elsewhere. SBA disaster loans are for businesses that have suffered a physical or economic loss due to a federally-declared disaster. Once you determine the real estate, equipment or other eligible assets you want to purchase with the loan, you’ll submit a formal 504 loan application.Īpproval typically takes a week, and once that comes, funding takes an additional 30 to 60 days, depending on the complexity of the loan. To apply for a CDC/504 loan, you’ll need to work with a Certified Development Company to prequalify based on personal and business tax returns, interim financial documents and a personal financial statement. You can also use SBA 504 loans to improve or modernize a business’s existing facilities. These funds allow you to purchase fixed assets, such as real estate, long-term equipment and machinery. The current 10-year Treasury rate determines the interest rates for SBA 504 loans. Loans are available up to $5 million (or $5.5 million for small manufacturers) and repayment terms extend to 10 years for machinery and equipment and 25 years for real estate. The borrower covers the last 10% with a down payment. The program is administered by participating CDCs (Certified Development Companies), which provide 40% of the loan funding, and a private bank or credit union funds 50%. SBA 504 loans, or CDC/504 loans, help small businesses secure the funding they need to grow and create jobs. Lenders usually disburse funds within a month of approval. Qualification requirements vary by lender and approval can take anywhere from a few days to a few weeks. You can apply for a microloan through SBA-approved nonprofits and community-based organizations. You can’t use microloan funds to pay existing debts or to purchase real estate. ![]() Terms max out at six years, and interest rates typically fall between 8% and 13%-although individual lenders decide the loan terms. Loans are available up to $50,000, but the average SBA microloan is around $13,000. SBA microloans are tailored to small business owners who need funds to rebuild, re-open, repair, enhance or improve their businesses. If approved, you’ll receive funding within seven business days, which makes an SBA Express loan an excellent option for small business owners looking to secure financing quickly. Once your application is received, the SBA will respond within 36 hours-much faster than standard SBA loans. SBA Express loans come with interest rates between 4.5% and 6.5% above the prime rate, and Express revolving lines of credit are available for up to 10 years. Loans are available up to $500,000 and have flexible repayment terms from seven to 25 years. SBA Express Loanĭesigned to help small business owners quickly access the funds they need, SBA Express loans come with short turnaround times. ![]() Still, an SBA 7(a) loan is best suited for a business with a solid financial history that doesn’t need money quickly. ![]() SBA-approved lenders typically require detailed financial documents, but the benefits of an SBA 7(a) loan are often worth the time. Keep in mind, the application process for SBA 7(a) loans is more complex than for other small business loans.
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