SBA Loan Programs Help PA & NY Small Business Owners Secure Financing
- Business Ownership
The Commercial Lending Team at C&N is always striving to create financing solutions that help aspiring entrepreneurs reach their dreams of small business ownership and existing business owners attain their goals. Risks associated with business start-ups, change of ownership, collateral-specific issues, and the reliance on financial projections can be challenging to mitigate. When deemed appropriate, we utilize the SBA loan guarantee programs as a credit enhancement enabling us to satisfy such financing needs which otherwise would be unmet.
What is an SBA Loan?
The Small Business Administration (SBA) has several small business loan programs that provide many benefits to the borrower; namely, although not limited to, extended repayment terms and lower down payments. They enable the lender to overcome collateral specific issues as well. One of the hallmarks to an SBA loan is the SBA guarantee, which means they are backed by the government to help make financing more affordable and accessible to small business owners.
Types of SBA Loans
There are several types of SBA financing programs available. The two most popular are the SBA 7(a) Loan and the SBA 504 Loan which offer financing for PA and NY businesses to increase working capital, purchase inventory, equipment or real estate. Other eligible uses of SBA loan proceeds include:
- Purchase machinery, equipment, supplies, furniture, fixtures;
- Make lease-hold improvements, expand or renovate facilities;
- Purchase inventory and provide permanent working capital;
- Acquire an existing business;
- Start a business;
- Acquire land and construct a building;
- Refinance certain existing debt.
SBA Loan Eligibility Requirements
SBA guaranteed loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and that the business is a “for-profit” entity. Certain size requirements must be met, the business must be able to demonstrate the ability to repay, and have a sound business purpose.
While the SBA loan programs are not “easy” to navigate, the good news is, we at C&N have the expertise and competency to utilize these programs. Learn more about the SBA Loan Programs available at C&N, meet our Commercial Lending Team, and contact us to schedule an appointment.