These lenders have supported local businesses in the Chicago area for a long time, helping grow local economies and communities. Borrowers do not need to apply for this assistance. It will be automatically provided for loans made after March 27, and fully disbursed prior to September 27, The SBA will begin making payments with the first payment due on the loan and will make the subsequent six monthly payments.
The SBA Refinancing Loans are very similar to standard Loans, but these loans are important tools designed for business owners to refinance existing debt into a Loan. Interest rate: Below-market interest rates are fixed for the life of the loan. Will your business qualify? Learn about SBA loan requirements.
See current SBA loan rates. These nonprofit economic development organizations will process your application, coordinate your financing and submit the loan package to the SBA. Business and personal tax returns for the last three years. Business and personal financial statements. Contractor estimates for construction loans. Cost documentation for equipment loans. This list isn't exhaustive, and the CDC and bank you work with may require additional documentation to process your loan application.
If your application is approved, SBA loans typically take one to two months to close. But closing can take longer for larger and more complex purchases. An SBA 7 a loan may be a better fit in those instances, provided you can meet the eligibility requirements. These lenders offer several options based on your business needs, including equipment financing , business auto loans and commercial real estate loans. SBA 7 a loans can be used for a wide variety of expenses, including working capital, purchases of supplies or fixtures and refinancing business debt.
SBA loans, on the other hand, are designated for large equipment or facility purchases or upgrades. You can't use an SBA loan for working capital or inventory. It typically takes several months from the time you apply for an SBA loan to when your loan is funded.
That time frame can stretch as long as six months for more complex projects, such as real estate purchases. Who can qualify for an SBA loan? What can an SBA loan be used for?
Existing facility or piece of real estate. Leasehold improvements. Ground-up construction. Expansion or renovation costs.
For working capital: Seasonal financing. Export loans. Revolving credit. Refinancing business debt. Who is eligible for an SBA loan? Loan term 10 years for an equipment loan. Prepayment penalty. Up to 25 years for real estate. Interest rate Fixed rate. Almost always variable. Proceed use Purchase an existing building. Land acquisition and ground-up construction. Improve, repair, or expand existing building.
Equipment purchase. Working capital. Expand, acquire, or start a business. Purchase an existing building. New construction. Refinance existing business debt.
Equipment or inventory purchase. Eligibility or program requirements Must prove job retention or job creation out of proceeds. Things to consider with an SBA loan The SBA loan can be a great loan program for eligible business owners or aspiring real estate investors looking to purchase and finance a new qualifying business or existing real estate. Servicing fee of 0. Processing fee of 1.
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