Supporting entrepreneurs establishing small businesses can significantly contribute to our nation’s economic strength. This is exactly what the US federal government’s Small Business Administration (SBA) sets out to do through its lending programs. To access Small Business Administration lending, Michigan companies and entrepreneurs in all 50 states can work with us as their financial partner. We can effectively provide and facilitate an SBA loan that will answer your capital needs.
SBA Loan Guarantee
Among the agency’s various lending initiatives, the SBA loan guarantee or 7(a) loan program is perhaps the one most frequently utilized. This program provides a government-backed guarantee to the small business loans facilitated by lending institutions through the program. The guarantee is a percentage of the loan amount. With recent updates to the program, the highest SBA loan available is $5 million and it can be guaranteed up to 90%. This can significantly reduce the risks and, as a result, small businesses are given an easier alternative access to capital.
Common Uses Of A SBA Loan
This particular type of loan is used by lending institutions in three main areas:
- A financing option for businesses that cannot meet the conservative underwriting requirements of banks
- Funding for business acquisitions
- An instrument of owner occupied financing
Banks will often see financing the purchase of certain types of commercial real estate property as too risky. This usually pertains to properties that have been developed for specialized use, such as repair shops or those that carry environmental risks like gas stations. Through the SBA’s lending program and the participation of partner financial institutions, such acquisitions are now a viable option for businesses looking to expand their operations.
Our extensive experience in the commercial lending and real estate financing fields enables us to fully understand and appreciate the challenges a small business must face in its early stages of development. We can help you overcome those obstacles through SBA lending programs and the other financing services that we specialize in.