That’s where an SBA loan could help.  SBA loans are government-backed loans that offer borrowers an alternative to conventional loans. 

Here are some key differences between conventional and SBA loans:

  • Equity Requirement.  Most conventional loans require 20 percent or more equity into a project, whereas SBA loans require as little as 10 percent.  And in some cases, it’s possible to do 100% financing with an SBA loan.
  • Terms.  SBA loans typically have longer terms.  For example, owner-occupied commercial real estate can be financed up to 25 years with an SBA loan.  Conventional terms are typically 15-20 years.  Equipment can be financed over 10 years or useful life with a SBA loan.  Conventional loans are typically limited to five or seven years.
  • Collateral.  While borrowers are required to pledge business and in some cases personal collateral, having 100 percent collateral coverage is not a requirement for an SBA loan.
  • Other.  SBA loans can be used for start-up and business acquisition financing, which is often difficult with a conventional loan. 

So the next time you’re looking for a business loan, consider applying for an SBA loan.  For more information on applying, contact Kevin, the SBA Executive, at