Types of SBA 7(a) Loans
The Metro Business Solution and Finance Corporation deals with a variety of secured and unsecured loans. Growing a small business is difficult to say the least in the present competitive world, and to manage a business with confidence you need to plan for the future. If your business is relatively small i.e you have fewer than 500 employees, if your yearly revenue has been less than $7.5 million on an average for the last three years and your net income has been under $5million and your tangible net worth is less than $15 million you can qualify for an SBA 7(a) loan.
The SBA loans broker in New Jersey and SBA loans broker in New York lists nine different kinds of 7(a) loans on its website. Each of them is designed to meet different needs. The types of loans are:
This is the most common among loans .Most small businesses will qualify for this kind of 7(a) loan. A maximum of $5 million can be borrowed. The SBA will guarantee 85% of loans up to $150,000 and 75% of loans greater than $150,000.
7(a) Small Loan
These loans lend up to $350,000, but otherwise have the same features as the Standard 7(a) loan.
This is for businesses where money is required quickly. The SBA says it will respond to your application within 36 hours. The maximum loan is $350,000, and the SBA will only guarantee up to 50% of the loan. It can be used for a revolving line of credit for up to 7 years.
This program is for exporters who need loans and lines of credit up to $500,000. The lines of credit last for up to seven years. The SBA will guarantee up to 90% of loans under $350,000 and 75% of loans that exceed that amount. This will also be lent within 24 hours.
Export Working Capital
This loan is for businesses that need additional working capital to support their export sales. Loans are available through the Export Assistance Center for up to $5 million. These lines of credit last for one year or less.
These are long-term loans offered to businesses that are either expanding because of export sales or need to modernize to address the adverse effects of imports from foreign competition. These loans are similar to the Export Working Capital loans in size and guarantees, but they last much longer—10 years for working capital, machinery, and equipment, and up to 25 years for real estate.
These low-fee loans are available to businesses that are at least 51% veteran-owned and controlled (spouses and widows of veterans count toward this requirement). Veterans may apply to other SBA loans and then apply the Veterans Advantage benefits to those loans.
CAPLines loans follow the general outline of the Standard 7(a) loan, but rather than a lump-sum loan, CAPLines extends an ongoing line of credit. This line of credit is meant to help small businesses meet short-term and cyclical working capital needs.
How Long Does It Take to Get an SBA 7(a) Loan?
The SBA 7(a) loans broker in New Jersey and SBA 7(a) loans broker in New York on an average take five to ten business days, but every case is unique. And for those in a hurry, the SBA Express loan has an accelerated turnaround time of 36 hours.