If you’re interested in starting a small business, the SBA or Small Business Administration is there to help you. The SBA was founded in 1953 as an independent agency to aid, counsel, and protect the interests of small businesses.
The SBA offers several types of loans. The SBA 7(a) standard loan has a maximum loan amount of $5 million. The SBA will guarantee this type of loan for 85% of loans less than $150,000 and 75% of loans greater than $150,000. The requirements for this loan are based on the amount you are requesting. For loans less than $25,000, lenders are not required to request collateral. However, collateral is required for loans that are larger than $350,000.
If your loan request is smaller than $350,000, you can utilize the SBA 7(a) small loan. This loan works the same way as the standard loan.
The SBA also hasn’t many other flexible loans, including the SBA Express loan, the SBA 504 loan, and the SBA CAPLines Loan. The SBA Express loan is also used for loans under $350,000. But unlike the small loan, the turnaround time is within 36 hours.
The SBA 504 loan is used for economic development and cannot be used for working capital or inventory. This loan offers low down payments, lower interest rates, and lower fees, depending on the economic development project’s size. Finally, the SBA CAPLines loans are lines of credit for businesses, and there are four types: Seasonal CAPLine, Contract CAPLine, Builders CAPLine, and Working Capital CAPLine.
To apply for an SBA loan, you must work with a lender in your area, and if you’re in the Denver area, you can contact Aspen Commercial Lending to help you through the application process. We offer many types of business financing, including consumer financing, equipment financing, Lines of credit, and, of course, SBA loans.