Business Loans, SBA Loans Article
Some small businesses may need to borrow under more reasonable terms and conditions in order to preserve working capital and improve their cash flow. Whether you’re starting, expanding or buying a business, our SBA lending experts are here to help you achieve your goals.
A Boost For Small Businesses
SBA loan can provide the capital you need to establish a firm footing for your small business and give it the fuel to grow, with financing terms not available through conventional lending products. Stellar Bank provides SBA 7a and 504 financing through a partnership with the U.S. Small Business Administration.
SBA Loan Advantages
- Longer repayment terms, up to 25 years
- As low as 10% equity/down payment
- Mixed use of proceeds
- Lower monthly payments
Financial Flexibility To Help You Thrive
SBA loan programs are structured to help startups and existing small businesses gain the financial access they need to put their plans into action, scale up operations, pursue bigger opportunities and grow. SBA loans can be used to:
- Purchase, construct or expansion of business owner-occupied business real estate
- Make leasehold improvements
- Purchase equipment, inventory, furniture and fixtures
- Refinance existing SBA-eligible debt
- Acquire an existing business
- Buyout an existing business partner
- Expand franchises to additional locations
The Stellar Difference
Stellar has a dedicated SBA team with many years of SBA program experience ready to help you. The Stellar SBA staff know the intricacies of SBA financing – including eligibility, underwriting, closing, funding and servicing. They will meet with you, get to know your business and structure an SBA lending solution to meet your business goals.
All The Small Business Loan Options You Need
SBA 7(a) Loans
- Ideal for starting or expanding your business, or to purchase owner-occupied business real estate and equipment
- Repayment terms of up to 25 years for construction, purchase or refinance of owner-occupied business real estate
- Repayment terms of up to 10 years for equipment purchases, business start-ups, business acquisitions and partner buyouts
- Loan amounts from $350,000 to $5,000,000
SBA 504 Loans
- Primarily for acquiring fixed assets such as real estate, large machinery and equipment
- Fully amortizing terms up to 25 years for construction, purchase or refinance of owner-occupied business real estate
- Loan amounts from $350,000 to $10,000,000
- Borrower receives long-term fixed rate financing (up to 25 years) on a portion of their financing
Frequently Asked Questions
What is an SBA loan, and how does it work?
An SBA loan is a loan with a government enhancement to allow business owners to borrower on better terms than they can conventionally. A Stellar Bank SBA Loan Officer will review the benefits of the SBA loan programs with you.
Is it hard to get an SBA loan?
The U.S. Small Business Administration has made it easy for many small businesses to qualify for an SBA loan. The timing of the SBA process is slightly longer to accommodate the SBA’s involvement, but the benefits of the SBA loan programs – lower equity injection and longer repayment terms – have proven to be worth it to many small business owners. A Stellar Bank SBA Loan Officer will guide you through the SBA loan process.
Can SBA loans be used for anything?
SBA loan funds can be used for most any typical business expense. The business must be “for-profit”. A Stellar Bank SBA Loan Officer can help you determine if your loan request is SBA-eligible.
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