What is an SBA loan and how can my business use the loan proceeds?

SBA loans are loans only available to small businesses. There are two types of SBA loans: SBA 504 and SBA 7(a). The SBA 504 loan is limited to commercial real estate and large equipment. The SBA 7(a) loan covers a wider variety of business eligible purposes beyond commercial real estate financing.

What does an SBA loan look like?

If you’re thinking, “a regular bank loan,” then you’re half right! An SBA 504 loan for commercial real estate financing consists of two loans: (1) bank loan and (2) SBA loan. The SBA 7(a) loan is different because it is only one loan and can be quite similar to what would be offered at your local bank. Unlike a conventional bank loan, the SBA 7(a) loan is backed by the SBA allowing banks to be more flexible to business owners. Also loan proceeds from SBA loans cannot be used for personal expenses, such as mortgage repayments or car payments. Instead, SBA 7(a) loans are limited to business eligible uses. Banks have varying appetites for SBA loans and their corresponding use of funds, which is where we come in.

How do I apply for an SBA Loan?

The first step is to fill out our handy online SBA Loan application. Once we receive your application will be able to walk you through the rest of the process, evaluating your situation and connect you with the best resource for your specific need.

How do I apply for an SBA Loan?

The money generated by this type of loan could be used for any number of things, such as

• Purchasing or refinancing a commercial real estate property occupied by owner’s business.
• Commercial real estate construction costs
• Renovating or expanding an existing business
• Buying out a business partner
• Acquiring a business
• Purchasing inventory or supplies
• Covering operating costs such as rent, marketing and utilities
• Refinancing high interest or short term business debt
• Financing a start-up business venture

The possibilities are endless! So if you’re feeling inspired to take your small business to the next level, an SBA loan can get you there by providing a longer term loan than a bank’s conventional loan in addition to a lower down payment.

What are some things I should consider before applying for an SBA loan?

When you are thinking about applying for an SBA loan, there are a few things that it’s important to keep in mind. First of all, make sure your business is eligible. To be eligible for an SBA loan your business must meet the following criteria:

• The business must be located in the U.S., its territories, or Puerto Rico;
• Your business cannot be an individual (e.g., sole proprietorships); and
• You must have a credit score of at least 500 to apply for this type of loan. However, if you need to boost your credit score before applying, you can speak to us about other possible loan options. These loans are ideal for business owners that need higher borrowing power than an SBA Loan but don’t have the necessary credit score.

Contact Jon Kleven at Monarch Commercial Capital
for assistance with all of these types of loans.

With over 15 years of experience in the commercial finance industry, we work with banks and credit unions nationwide to provide OPTIONS, EXPERIENCE & EXECUTION to your financing.

What is an SBA loan and how can my business use the loan proceeds?

What does an SBA loan look like?

How do I apply for an SBA Loan?

How do I apply for an SBA Loan?

What are some things I should consider before applying for an SBA loan?

Contact Jon Kleven at Monarch Commercial Capital for assistance with all of these types of loans.

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Contact Jon Kleven at Monarch Commercial Capital
for assistance with all of these types of loans.