Eligibility For SBA Loans

Get The Most Out Of Your Business With An SBA Loan

If you are a business owner and interested in making improvements to your company or buying or renovating a commercial property, there is an excellent loan option available to you. An SBA, or Small Business Administration), loan is partially insured by the government and offers borrowers great loan terms and interest rates. If you are a local business owner located in the areas of Palm Beach, Tri-County, or Broward County, Florida, and are looking for financing to help make advancements to your company, CTC Mortgage is here to help. Continue reading to learn more about boosting your business with an SBA loan.

SBA Loan: Essential Information

The purpose of SBA loans are to aid small businesses and they can either be used to refinance an existing business loan or they can help a borrower open an entirely new operation. Since SBA loans are partly backed by a federal agency, they pose less of a risk to lenders because the Small Business Administration will pay the lender if a borrower defaults on the loan and is unable to make payments. This allows SBA loans to have lower interest rates and more flexible mortgage terms. Because SBA loans are associated with the federal government, it is important to note that the mortgage application process tends to take longer and qualifying application requirements are stricter than other loan types.

What Are The Benefits Of Getting An SBA Loan?

There can be many benefits to getting an SBA loan and it can be a great way to help finance your small business. One major benefit of an SBA loan is that they have lower, capped interest rates and they offer longer repayment terms. Another advantage is that there are a variety of SBA loan options available, so you can work closely with your lender to find the most suitable choice for your situation. Additionally, down payment amounts for SBA loans tend to be less than traditional loans, and a borrower has the option to finance up to 80 to 90 percent of their projected business costs with this mortgage type.

How To Qualify For An SBA Loan

When applying for an SBA loan, it’s important to understand that lenders will be looking for business that can demonstrate the capability of making monthly mortgage payments. The common eligibility requirements for an SBA loan include:

● The borrower must illustrate that their business is financially stable

● A credit score of at least 640

● The business must meet the SBA small business classification, be based in the U.S, and considered as a for-profit business

● The business must be at least 2 years or older and have a substantial amount of equity

If you are interested in using an SBA loan to boost your business in Palm Beach, Tri-County, or Broward County, Florida, contact CTC Mortgage today for a consultation.