SBA, Term, Lines of Credit, and US Payable Finance Explained

SBA 7(a) LOANS ($30,000 - $5M)

The Small Business Administration (SBA) exists, as its name implies, to serve small American businesses. What’s important to understand, however, is that it’s not the SBA that is giving you the loan. The SBA is simply guaranteeing the loan for the bank that will be extending the financing to you, and that guarantee ranges between 75% and 85%.

What does that mean for you, the borrower? It means that while it’s the bank that is lending to you (or not, as the case may be), that bank still has to like the deal. And banks’ affinities for different industries vary. For example, some banks like to focus on retail businesses. Others prefer manufacturing, or construction. There are banks that specialize in agriculturally-oriented businesses.

Even if your type of business is within your bank’s wheelhouse, they may still choose not to extend a loan to you, based on their particular lending parameters. But that doesn’t mean that you won’t qualify for an SBA loan from a different bank. It happens all the time!

It would be quite a cumbersome task to submit a loan application to each and every bank you can think of, hoping to find one that will give you the SBA loan you need. Multiply that by 50 states (SBA loans are not state-specific), and you have an astounding number of potential lenders.

That’s why it’s best to work with SBPI Services, Inc. Through our resources, we are connected with close to 100 banks throughout the US and have a higher success rate of getting loans funded because your loan will be submitted to a lending institution that is already known to have an affinity for your particular industry.

We also offer SBA commercial real estate loans! Reach out today: (310) 536-0046

TERM LOANS ($30,000 - $15M)

Great for:

General working capital

Purchasing inventory

Hiring employees

Refinancing business debt

Marketing

Construction or remodeling

Business acquisition/partner buyout

Import/export typically will not qualify. But cannabis businesses can!

LINES OF CREDIT ($1,000 - $500,000)

Flexible capital when you need it; pay interest and fees only on the funds you utilize! Minimum 6 months in business.

PAYABLE FINANCE ($50,000 - $3M)

For US companies paying US or foreign suppliers, or Canadian companies paying Canadian suppliers. Primarily for products with 6+ months of shelf life. This is NOT factoring.

REACH OUT WITH ANY QUESTIONS!

We are here to help!

Call us at (310) 536-0046 (Pacific time)

Email us at info@sbpiservices.com