Rates and terms from the Small Business Administration (SBA) are attractive, and now there are more loan types than ever before. The newest SBA loans, Express Bridge (EBL) loans and Community Advantage (CA) loans, could be the perfect option to fuel your local business growth. These pilot loans are offered through approved local lenders and set to accept applications only until next year (through March for CA loans, and through September 2020 for EBL), but the programs could be extended.
Here’s what you need to know.
SBA Community Advantage Loans for Revitalization
These SBA guaranteed loans are designed to support for-profit small businesses in underserved markets, such as Promise Zones, HUBZones, Opportunity Zones, Enterprise Communities, and more. Loans are limited to $250k or less, with as much as 90 percent guaranteed by SBA. Even if you don’t qualify for a standard business loan from your bank, this loan could help you obtain credit at a reasonable interest rate, to sustain and grow your local business.
Along with the loan funds, and the opportunity to establish credit, your company can also receive expert advice and support in key business areas, which could include:
- Operations management
- Business plan writing
- Technical coaching
- Market research
- And more
SBA Express Bridge Loans for Disaster Recovery
The Express loan program offers quick approvals and expedited emergency funding of up to $25k for small businesses in disaster areas. These SBA-guaranteed loans help to meet immediate business needs for recovery and maintenance, after a natural disaster has been declared by the President. These loans act as an interim “bridge” until long-term finances are secured. If you operate in a primary or contiguous county where the declared disaster took place, you can seek these loans from 7(a) banks where you have a pre-existing relationship. You must apply within 6 months after the disaster occurrence and may take up to 7 years to repay, however, payoff may be required as soon as your long-term funding comes through.
For information about SBA loans or other business funding options, contact Mossberg Strategic Capital today.