Heard about SBA loans but not sure where to start? You're in the right place! SBA loans are a fantastic resource for small businesses needing capital. The key thing to understand is that the SBA doesn't lend money directly. Instead, they act like a co-signer, guaranteeing a portion of your loan obtained through an SBA-approved lender (like banks or credit unions).
This guarantee is a big deal – it lowers the risk for lenders, making them more likely to say "yes" to small businesses they might otherwise turn down. This often translates into better loan terms for you, such as:
The SBA offers several loan programs, each designed for different purposes. Here are the heavy hitters:
The most common and versatile option. Great for a wide range of needs including working capital, equipment purchases, debt refinancing, business acquisition, and real estate. Loan amounts up to $5 million.
Specifically designed for financing major fixed assets like land, buildings (including construction), and long-lasting equipment. Features long-term, fixed interest rates on a portion of the loan and typically requires only a 10% down payment.
Need funding faster? This streamlined version of the 7(a) offers accelerated processing for loans up to $500,000. Can be a term loan or a revolving line of credit.
Provides smaller loans (up to $50,000) through non-profit, community-based intermediaries. Excellent for startups, specific small projects, or businesses needing technical assistance alongside funding.
💡 Confused? Let Khojie Help You Choose! We analyze your specific needs, financials, and goals to recommend the SBA program that offers you the best terms and highest chance of approval.
While each program has nuances, most SBA loans require you to:
Certain business types (like passive real estate investment or lending) are generally ineligible.
Approval times vary but typically range from a few weeks to a couple of months. Working with experienced lenders like Khojie can speed up the process.
Yes! Many franchises qualify for SBA financing, especially under the 7(a) program. The franchise must be listed in the SBA Franchise Directory.
Most SBA loans require some form of collateral, but the requirements are less strict than traditional loans. In some cases, the business itself can serve as sufficient security.
Since the government guarantees a portion of the loan, lenders take on less risk. However, you remain personally liable for repayment, so having a solid financial plan is essential.
The world of SBA loans can be complex, with different programs, requirements, and paperwork. Khojie acts as your experienced guide, making the process smoother and more successful:
Don't let SBA complexity hold you back. Partner with Khojie to unlock government-backed funding for your small business.
Whether you need working capital, equipment, real estate, or funding for another goal, an SBA loan could be the answer. Let Khojie help you find the right program and secure your financing.
