As a small business owner, a common challenge you might face is how to get working capital to accomplish the goals you’ve set for your business. Most business owners apply for SBA loans guaranteed by the U.S. government agency whose duty is to strengthen small businesses.
One downside with this type of loan is that it can take up to eight months to get approved. This is because banks spend a lot of time reviewing loan applications by thoroughly looking at your credit score and business plan.
However, with National Business Capital, the whole process is streamlined to 30 days. National Business Capital simplifies the procedure and makes SBA funding easier by matching you with a lender and giving you expert advice to guide you in the application process.
What Is An SBA loan?
An SBA loan, by definition, is simply a loan for small businesses that are guaranteed by the U.S. Small Business Administration (SBA), a federal government agency dedicated to helping small businesses grow. There are various types of loans tailored for small business owners. Still, SBA loans are the most sought-after, mainly because they have lower interest rates and significantly longer repayment terms.
Only those with an existing business can apply for an SBA loan. The funds you get are typically for expansion-related goals, such as getting new real estate, refinancing your mortgage agreement, or buying equipment for your business. SBA lenders provide you with the capital you need, so you don’t have to disrupt your cash flow.
Types of SBA Loans Available Through National Business Capital
You can apply for the following types of SBA loan programs with National Business Capital:
7(a) Loan
This is arguably the most sought-after type of SBA financing, mainly due to the favorable terms. With this loan, you can get up to $5,000,000 and a repayment period of up to 25 years. The funds obtained can be used for various purposes, including purchasing real estate and equipment, refinancing debt, or as working capital.
CDC/504 Loan
This is a loan program meant for small businesses that want to buy or build commercial real estate. With this program, two lenders come together to fund the project: a traditional lender like a bank and a community development corporation (CDC). The bank typically covers up to 50%, the CDC 40%, and the remainder comes from the borrower, usually as a cash down payment.
To qualify for this type of loan, the business must occupy at least 51% of the commercial space, meaning you can rent out the remainder to tenants. This is one of the best financing options for businesses looking to build and own commercial real estate.
Microloan Program
The SBA Microloan program is primarily targeted toward new businesses. In this case, the maximum loan amount is $50,000, though there are lower qualifications. The average loan amount for SBA microloans is $13,000, and they have terms of up to six years.
National Business Capital SBA Loan Terms
Your primary goal when getting a loan is to get funds for your business. However, not just any loan will do. These products are usually structured differently, so you should pay attention to the terms to find the most suitable funding.
With National Business Capital, SBA loan terms include.
Interest Rates and Fees
The following is a breakdown of the current SBA loan rates:
- SBA 7(a): 5.5% – 9.75%
- SBA CDC/504: 3.63% – 3.85%
- SBA disaster loans: 4% – 8% depending on whether you have credit elsewhere
There are also SBA fees and lender fees to be paid, depending on the SBA lender National Business Capital matches you with.
Loan Terms
You’ll generally get 10 to 25 years to repay an SBA loan. The maximum loan term for SBA loans is 10 years for working capital, and it could go up to 25 years for real estate.
Loan Amounts
Depending on your business needs and qualifications, you can borrow from $100,000 to $5,000,000. The SBA guarantees part of your loan, typically 85% for $150,000 or less and 75% of the loan for amounts higher than $150,000.
Who Is Eligible for An SBA Loan With National Business Capital?
To qualify for an SBA loan through National Business capital, you have to meet the following requirements:
- Your business must have been in operation for at least two years
- Generating $100,000 in annual gross sales
- Have a credit score of 685 and above
What Other Business Loan Types Does National Business Capital Offer?
Apart from SBA loans, National Business Capital offers different other business loan types you may want to consider.
- Small Business Loans
- $25,000 – $5 million
- 1 to 10 years
- 6 months in business
- At least $120,000 in revenue
- Business Lines of Credit
- $25,000 – $5 million
- Revolving
- At least one year in business
- Annual sales of more than $120,000
- Asset Based Lending
- 50 to 95% of your collateral
- Flexible terms
- No minimum sales, time in business, or credit score
- Assets as collateral
- Accounts Receivable Financing
- $100,000 – $25 million
- Revolving
- More than 6 months in business
- More than $40,000 in monthly receivables
- Purchase Order Financing
- Up to 90% of the PO ($250,000 to $25 million)
- Flexible terms
- No strict requirements
- Merchant Cash Advances
- $25,000 – $5 million
- Flexible terms based on your needs
- 6+ months in business
- $120,000+ in annual gross sales
- Franchise Financing
- $10,000 – $5 million
- 6 months to 10 years
- 3+ months in business
- $120,000+ in annual gross sales
- Commercial Mortgage Financing
- $100,000 – $4 million
- 10 to 25 years
- 2+ years in business
- A FICO score of 620 or above
- Startup Business Funding
- $10,000 – $5 million
- 6 months to 10 years
- At least 6 months in business
- $10,000 in Monthly Receivables
How To Apply For An SBA Loan With National Business Capital
Applying for an SBA loan is typically a lengthy and tedious process, but National Business Capital has a simplified process for its customers. Provided you have all the needed requirements; you can complete your application in three simple steps:
1. Fill out an online application form
Applying for an SBA loan through National Business Capital to get larger loan amounts with lower rates. To start the application process, you need to fill out a digital form. Have your personal and business information with you when filling out the SBA loan application form.
2. Match and Review
National Business Capital partners with over 75 lenders, so you can easily find the most suitable option. Here, you get to consult with a trusted business finance advisor who will guide you to make the right choices and advise you on getting an SBA loan with a tax judgment. After that, you’re matched with a lender.
3. Get Your Funding
In as little as 45 days, you can get the funds you need for your business.
