The Small Business Administration (SBA) approves more than $28 billion in small business loans a year.1 And that doesn’t even include disaster-related loans. It’s good news for companies seeking capital to generate productivity and growth.
With financial partners like Truist, the SBA provides loans to help small businesses like yours act on opportunities to expand, boost revenue, or restructure. Because small business loans can carry added risks, the SBA offers lenders guarantees to ensure that companies have access to capital.
If you’re thinking about investing in technology, real estate, mergers, partner buyouts, or market expansion, SBA financing could provide you with an ideal source of capital.
SBA loans are becoming a standard option for small businesses looking to expand, from start-ups to established companies. SBA loans cover a wide range of capital needs and offer requirements and terms that are more flexible than conventional loans.
Understand SBA financing.
The SBA offers loan programs through financial institutions like Truist. Truist will connect you with a dedicated team of bankers specializing in SBA loans to help you compile the financial documents required for your application.
You’ll submit your business’s application to the bank, and then Truist will apply for a loan guarantee from the SBA.
If approved, Truist provides the loan—which can range from $25,000 to $5 million—and the SBA agrees to cover up to 85% of any losses in case of default. You’ll make loan payments directly to the bank.
SBA loans offer more flexibility.
SBA loans have several advantages over conventional loans. SBA programs:
- Provide financing for new and developing companies and for real and intangible assets.
- Offer more lenient standards than many conventional loans, with flexibility for business size and loan amount.
- Present options for long-term financing and low-down payments.
- Treat collateral more favorably.
- Consider business goodwill a financeable asset.
- Streamline the application process for easier and quicker loan preparation.
SBA loans are designed to make it easy for small businesses to apply and qualify.
Tangible benefits of SBA loans
An SBA loan can allow you to do quite a lot, like:
- Hire employees and purchase capital assets.
- Pursue partner buyouts and acquisitions.
- Keep the costs of growth capital low with extended loan terms and low payments.
- Spend less time researching financing options.