What Is An SBA Loan?

Small Business Administration (SBA) is not a lender and doesn’t make direct loans to business owners to start or develop a business. However, SBA provides guarantee to banks and private lenders for the amount they lend to small businesses. The guarantee that SBA provides protects the interests of lenders by way of assuring to pay a fraction of the loan back in case the entrepreneur fails to pay the borrowed amount. Therefore when a small business applies for an SBA loan, it actually is applying for a business loan from a bank or authorized SBA lender, structured in line with SBA requirements with an SBA guarantee.

Basically, the SBA loans reduce the risk connected with lending to small businesses that may not make the grade for traditional loans – therefore bringing in unique lending opportunities to thousands of businesses, developing businesses, start-up businesses, veterans as well as minorities.

How SBA Loans Help?

SBA loans are a unique financing program for small businesses because they’re supported by the government, offering better security and financing terms as compared to standard traditional loan. The maximum loan amount on SBA loan can go up to $5 million, and the repayment term is 25 years with affordable interest, offering small businesses the flexibility that they actually require to develop.

An SBA Loan Can Save Your Business Big Bucks

Small business owners can save hundreds of dollars by using SBA loan to refinance their existing high interest debts every month. There is debt that can’t be refinanced with SBA loan. Consult with your lender to see if your debt qualifies for a refinance before starting the application process

How Do I Apply For An SBA Loan?

As every business financing program that SBA offer has its own features, eligibility standards and application process, there is some advance groundwork which you will need to take on from business and personal financial statements to previous tax returns. The SBA issues a loan application checklist that helps you to find what you will need to prepare yourself before applying for loan. This also elucidates how to prepare a loan program.

Flexible Lending

Getting quick and flexible financing has become a challenge for small businesses. From startup to expansion, meeting the requirements of traditional loans from bank can be very tough. Merchant Advisors can help you with your financing requirements.


Funds Supporting Growth

SBA loan can be used for a number of objectives to support the growth of your small business. Some other uses for SBA loan are for business equipment purchases, hiring new workers, starting a new business project, refinancing existing debts.

Save You Big Bucks

When using SBA loan to refinance your existing debt, they can save you hundreds of dollars or even more every month.

Excellent Rates

SBA loans commonly have the lowest interest rates as compared to other business funding sources, for instance a cash advance, credit cards or peer-to-peer loans. The highest interest rates on SBA loans are also primarily based on market rates. As the rates in the market change, so will the maximum interest on these loans.

Long Terms

SBA loans are normally meant to support long-term small business financing. Loan maturities are based on the potential to pay off, the objective of the loan proceeds, and the functional life of the assets financed.

Quick Cash

After filling the online loan application, you can get the required funds in just 7 days. The better organized a borrower is, the quicker the loan will be funded.

No Prepayment Penalty

When you pay off the loan early, there is no fee or extra cost on it, which means there is no prepayment penalty.

Get Your SBA Loan Today!

One of the major factors of getting an SBA loan is locating the reasonable lender. Merchant Advisors is a best trusted lender in the market who is offering SBA loan that you need for your small business. We provide basic SBA 7(a) loans, which are best for both starting and previously established but growing small businesses.

Merchant Advisors is here to eliminate all the hassle and get you the SBA loan. The process of SBA loan can be lengthy and challenging and therefore we offer a range of small business financing programs just like the SBA 7(a) loan, SBA 504 loan, SBA microloan and Small Loan Advantage program that we will modify to meet your particular requirements. So what are you waiting for! Apply today for the best business financing programs.