Questions and answers about SBA financing with Lifeline Business Capital
Who is the SBA and what do they do?
The SBA is the US Small Business Administration. They guarantee small business loan programs through a network of approved SBA lenders.
What can the loans be used for?
The SBA guarantees loans for debt refinance, working capital, inventory, equipment, renovation, business acquisition, commercial real estate, construction, renovation and so much more.
Why obtain an SBA loan?
An SBA guaranteed loan provides longer terms, lower rates and monthly payments than other business loans, and is based on the ability to repay the loan not specifically the collateral offered. This enables small businesses to keep their cash flow for operational expenses and spend less on debt repayment
What programs are offered?
The main programs offered are the SBA 504 loan for real estate based loans, and the SBA 7A for all other types of loans.
How are the loans structured?
The SBA 504 loan for the purchase of real estate, is a fixed rate loan with a 25 year amortization. The SBA 7A loan is a variable rate tied to the current prime rate plus a margin, depending on the deal. Non-real estate loans can have terms up to ten years.
How much financing can I get with an SBA loan?
On real estate based transactions, you can borrow as much as 90 percent.
How long is the process to obtain an SBA loan?
It varies based on the type of loan applied for and how quickly your documentation is submitted. Assuming all information is submitted in a timely manner, our target is 60 days to close.
Are there any fees?
As with all business loans, there are fees involved for appraisal, environmental, credit reports, legal fees, a packaging fee and the SBA guarantee fee which is based on the loan amount.
Can these fees be included in the loan amount?
Mostly yes, however, it will depend on certain factors in connection with the loan application.
What does Lifeline Business Capital do for me that I can’t do on my own?
At Lifeline Business Capital, we analyse your loan request and find you a lender in our network that not only has experience with the type of loan you are looking for, but whose rates and fees are lower than practically any loan you can find on your own. Compared to other lending sources, SBA loans offered by our lenders are less expensive and have less fees. In addition, we work with your CPA or business manager to obtain the documents the lender needs. We then package your loan and submit it to our lender for approval. All of this takes the hassle off your shoulders and puts it squarely on ours. Our borrowers receive the winning combination of lower rates, lower fees and less hassle than taking on a complicated an unfamiliar task on their own.