What is an SBA Loan?
Having been a Small Business Administration (SBA) Lender for twenty years I am often asked what is the SBA and what do you use an SBA 7(A) loan for? The SBA is a government program, funded by its users, which provides participating banks a partial guaranty in the event the loan defaults. Participating banks utilize the program because it allows the bank access to borrowers that otherwise may not be served.
The SBA program provides eligible borrowers benefits such as:
• Extended loan terms and amortizations
• Reduced loan down payments
• Availability to finance special purpose projects (hotels, gas stations, car washes) that might not qualify for conventional financing
• Ability to finance transactions, such as business acquisitions, with limited collateral
While there are many financing options available to a commercial customer, the SBA 7(A) product can provide an essential tool. Take advantage of an experienced SBA 7(A) lender when reviewing your financing options.
SENIOR VICE PRESIDENT,
HEAD OF SBA LENDING
1854 Midland Trail
Shelbyville, KY 40065
859.361.8764 or 866.633.4450