Understanding SBA Loans and the Role of a Broker from Finnection USA
SBA (Small Business Administration) loans are a popular option for small businesses looking to secure funding. These government-backed loans offer competitive terms, lower down payments, and longer repayment periods, making them an attractive choice for entrepreneurs. The SBA doesn’t directly lend money; instead, it guarantees a portion of the loan, which reduces the lender's risk and allows small businesses to access financing that they may not otherwise qualify for. There are several types of SBA loans , but the most common are the 7(a) loan, which provides general-purpose funding, and the CDC/504 loan, which is used for purchasing major assets like real estate or equipment. Each loan type has specific eligibility requirements, but they typically focus on factors such as the business’s size, ability to repay, and how long the business has been operating. However, navigating the SBA loan process can be complex and time-consuming. This is where a broker like...