When you want to grow your business, you need financing to make it happen. Fortunately, there are loan options you can use to help grow your business so you can continue to achieve your organizational goals and objectives.
SBA 504 loans
This type of loan is good for a small business interested in real estate or equipment purchase. It has the benefit of long-term repayment options. The SBA 504 loan can be attractive to businesses because the interest rates are frequently lower in comparison to other interest rates. The maximum loan amount is $15 million and the term is a ten-year term up to a thirty-year amortization. The interest rate is usually around six percent (6%). The approval process usually takes one or two months.
This type of loan is good for business expansion in specific business types, such as assisted living facilities, office space, or hotel franchises. The terms for this loan is between three months and two years (24 months). The interest rates are generally between 6.5% and 8.5%. The application process usually takes between two and four months.
This is a short-term loan used for refinancing after deterioration or to purchase properties that have become distressed. The monthly payment is usually low, and borrowers usually only pay interest for the first six to 24 months. The maximum loan amount is $15 million, and the terms for the loan are between six and 24 months. The interest rate is usually between 8% and 10%. The application process usually takes between two and six weeks.
Growing your business can be an exciting opportunity. Fortunately, there are loans you can use to provide the financing you need to be successful as you grow your business and continue to achieve your goals. Knowing the options available can help you select the right one for your organization.