855.504.LOANS
Debt Equity Grants; How to Intellegently Fund Business
by Todd A. Smith
Read an advance exerpt from this must read book due for release mid 2011. Mr. Smith explores the use of blended funding sources to sculpt a loan that "intellegenty" works for your business, maximizing leverage without crushing terms and high debt service.
Check out our Blog
Washington, DC; Government approval for SBA 504 to restructure existing debt. Bail out for small business; while this ruling is not a panacia, it does spell out badly needed relief the the small businesses in this country. In a tight credit market, this is an effective way to lower debt service costs. Read More
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What is an SBA 7(a) Loan
SBA 7a is blended loan the source for which is government funded Community Development Corporations and private lending institutions.
SBA 7a can be used to:
• To buy an existing business
• Startup capital for a new business
• Working capital
• To refinance existing debt
• To purchase new or used equipment
• To purchase real estate for business purposes
• To finance accounts receivableReal Estate Financing
• Fixed Assets
• Working Capital
• Equipment Leasing
• Workout & Forbearance
• Debt Restructuring
• Account Receivable & Purchase Order financing
• Joint Venture & Partnerships
SBA 7a loans are the most basic and most used type loan of SBA's business loan programs. All SBA 7a loans are provided by lenders who are called participants because they participate with SBA in the 7a program. SBA 7 a loans are only available on a guaranty basis. This means that they are provided by lenders who choose to structure their own loans by SBA's requirements and who apply and receive a guaranty form the SBA on a portion of this loan. The SBA does not fully guaranty 7a loans. The lender and SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is a guaranty against payment default. It does not cover imprudent decisions by the lender or misrepresentation by the borrower. See if you qualify.
H1:SBA 7(a) Loan Amount:
• SBA's 7(a) Loan Program has a maximum loan amount of $2 million. SBA's maximum exposure is $1.5 million.
• Thus, if a business receives an SBA guaranteed loan for $2 million, the maximum guaranty to the lender will be $1.5 million or 75 percent.
Which SBA Loan best suites your needs? Click here to see a comparison. (pick up existing 504-7a Comparison chart)