SBA loans, also known as small business administration loans, or 7(a) loans, are loans that are meant to aid and assist those who are starting a small business or are already small business owners. The loans are partially secured and backed by the government, specifically by the Small Business Administration agency, whose aim is to stimulate the U.S. economy by offering assistance to small businesses. The loan offers an incentive to other financial lenders and institutions since it is partially secured by the government. In an SBA loan, even if the borrower defaults, a majority of the loan is still covered (up to 85%) through government backing, which is a source of assurance for many lenders. Without the backing, many financial institutions and lenders would be reluctant to offer a loan to small business owners because of its riskiness.
SBA loans have low interest rates, making them a desirable option for many small business owners. These loans give out high loan amounts, long repayment terms, and other features that are highly beneficial to business owners. Unfortunately, SBA loans are very difficult to qualify for with traditional financial lenders. There are stricter regulations and requirements that make this loan difficult to obtain. Some requirements of the loan include:
If you’ve applied for an SBA Loan with a bank and got turned down, don’t give up just yet. Although SBA loans are difficult to come by, Opportunity Business Loans can give you a better chance of qualifying for a loan by connecting you with hundreds of different lenders within our large network. With so many different lenders, you’ll have a greater chance of successfully finding the right type of loan for your business. When you apply with us today, we’ll do most of the work for you so you won’t need to go from bank to bank or fill out an enormous number of applications. Just fill out one form with us, and over a hundred different lenders will have access to review your business profile and create an offer that’s right for you. Let Opportunity knock on your door today.
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