Getting an SBA loan is a new experience for many entrepreneurs and fledgling business owners. At present the SBA has some of the best financing available for businesses, such as gas stations, hotels, apartment complexes, office buildings and shopping centers. It is extremely important that business owners do their homework before applying for an SBA loan.
A great place to start is Winston Rowe & Associates, they are a national no upfront fee commercial real estate finance consultant.
You can contact Winston Rowe & Associates at 248-246-2243 or visit their website at http://www.winstonrowe.com
Getting an SBA loan requires a lot of preparation and effort, with prospective applicants getting only one bite at the apple. That?s why it?s important to do your home work on the commercial property type that you are trying to finance and work with an experienced financing firm.
An excellent free resource prepared by Winston Rowe & Associates for commercial real estate investors is:
http://www.winstonrowe.com/Free_Real_Estate_Resources.html
What is the Small Business Administration (SBA):
The SBA stands for the Small Business Administration and was created to help small businesses in the United States. While there are other programs that the SBA offers besides financing, their loan program is one of the most well-known because it guaranteed by the US. Government and has favorable rates and terms, especially in today?s economic environment. It is important to note the the SBA DOES NOT make loans, but rather, guarantees loans made through private banks. The actual payments you make will be to a regular commercial bank, not the US government. The SBA creates the program and guarantees most of the loan against default. It is important to remember that if you have access to other low-cost business capital you will NOT be approved for an SBA loan. The program is intended for those businesses that do not have access to low-cost capital elsewhere
What do you need to apply?
This is an open-ended question depending on what type of business you are trying to finance. However, the rule of thumb here should be you will need a large amount of documentation for any SBA loan. The reason why is that business loans are inherently risky given that most small business fail within 5 years of inception. Because the government is guaranteeing most of the loan, they set the documentation requirements to help mitigate this risk. Count on having to provide a detailed business plan, personal character essays/references, as well as detailed financial statements and projections. It is not uncommon for an SBA loan application to have in excess of 180 pages. However, the upside is that it could make the difference between success and failure for you business.
What types of loans are available?
The SBA has several different loans designed for various business needs. The first is known as the SBA 7a loan. This loan is designed for small business and has the flexibility to meet the needs of most businesses. Loans are made through commercial banks, with a portion guaranteed by the SBA. Loan purposes include working capital, business renovations, equipment, furniture and fixtures, land acquisition and new construction as debt refinancing under certain circumstances. Duration of the repayment term can vary, depending on loan purpose between 10 and 25 years.
The SBA 504 & SBA 7a Loans:
This loan is designed more for businesses that may be part of a larger development or redevelopment within a community of city. This type of loan is typically just one of many used in a ?financing package?, unlike the SBA 7A loan, which usually will ?stand alone? as the primary financing vehicle. In an SBA 504 loan type scenario, a private bank will provide up to 50% of the financing, with SBA 504 loan picking up an additional 40% while the business borrower will contribute their own funds of 10%. It is important to remember that these types of loans are obtained also with the help of a CDC, or certified development company that is a non-profit corporation set up expressly for community economic development.
Getting an SBA loan may be the best decision you can make as a business person. The key is to allow you the adequate amount of time to get acquainted with multiple requirements and ?hoops? you need to go through to get this type of advantageous financing. While an SBA loan is the best option, it will never be a quick path to funding, so take the time to do your homework, and it will be time well spent.
Winston Rowe & Associates success is measured by our clients? success, and their mission is to be your source for the most appropriate ? and advantageous ? hotel financing solution that helps you achieve your goals.
Their experienced and enthusiastic SBA professional team has the expertise needed to make the loan process as easy as possible for their clients.
Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243
Winston Rowe & Associates has no upfront free office commercial real estate loans in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, ?Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, ? Texas, Utah, Vermont, Virginia, ? Washington, Washington DC, West Virginia, Wisconsin, Wyoming
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