Home | List of Articles | Submit an Article | Contact Us

Small Business Loan Options

Confusion abounds in the small business loan world. You know you want to start a small business but cannot figure out what kind of business loan you need. You have it narrowed down to a small business loan of course, but even in the small business loan arena there are a variety of different types of SBA loans. So what kind of small business loan is right for you? Will a basic 7(a) fit your needs or do you need the 504 SBA loan? Or does your situation require a CAIP loan? Maybe a LowDoc SBA Loan is just what the doctor ordered.

To sort this mess out lets take a look at the various different kinds of small business loans that are available to you so that you can decide which business loan will fit your needs.

SBA Microloan – For those in need of less that $25,000 to start your business then looking at a SBA mircoloan is a good place to start. These loans are designed to help get businesses off the ground or to help your business through a short downturn in profitability. It is also important to note that interest rates tend to be higher on this type of small business loan.

LowDoc – As you might expect the LowDoc small business loan requires very little paperwork. In fact, the initial application for the LowDoc small business loan consists of just one page. You can apply for a loan up to $100,000. The LowDoc loan is made on the basis of your character and personal credit so it can be helpful to those starting small businesses but lack a business credit history.

Basic 7(a) SBA loan – This type of small business loan can range up to $750,000 and is backed by the SBA but is actually issued by commercial lenders. These SBA loans are normally relatively easily to qualify since they are backed by the Small Business Administration, a government entity.

504 SBA loan – A 504 SBA loan can be acquired up to $1 million. However, the loan cannot be used to finance more than 40 percent of the business venture or project. This type of business loan is ideal for individuals who possessing strong assets and who can show the positive effect (in terms of jobs created) your business will have on the community.

Community Adjustment and Investment Programs(CAIP) – This loan program was developed to help small businesses create more jobs or prevent potential job less. The hitch is that for your application to be approved you must show that your business is in jeopardy as a result of trade changes in either Mexico or Canada.

As you can see there are a variety of different options available for you business loan needs. It is up to you to do your homework and determine which small business loan is right for you. For more business advice and counsel visit AllBusiness.com

Related Articles:

Commercial Mortgage Broker - What can your commercial mortgage broker do for you? If you have not ever met with your commercial mortgage broker now is a good time too. A commercial mortgage broker can offer you a wide variety of products and services - such as a commercial mortgage or a commercial bridge loan - to fit the needs of your company, whether you are rapidly growi ...

What is a Commercial Mortgage? - A commercial mortgage or is a business loan which is secured against a commercial property. Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs. Bu ...

Small Business Loan Options - Confusion abounds in the small business loan world. You know you want to start a small business but cannot figure out what kind of business loan you need. You have it narrowed down to a small business loan of course, but even in the small business loan arena there are a variety o ...

How a Commercial Mortgage Can Help Your Business - A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property. Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs. But they can also be used to buy other business assets such as plant or machinery. As well as being a usefu ...

How To Apply For a Business Loan - Worried about how to apply for a business loan? Although it may seem like a daunting task at first, it can be made less so by careful preparation. When applying for a business loan, you must prepare a written loan proposal. Make your best presentation in the initial business loan proposal and application; you may not get a second opportunity.

What is a Business Loan? - A business loan is designed for a wide range of small, medium and start-up business needs including the purchase, refinance and expansion of a business. If you run your own business, it is likely that you will need funds at different points of time for various needs. Whether it is starting or expanding business, purchasing or leasing office spac ...

For a Complete list of Articles with summaries Click Here