So, you launched a startup hoping that your great idea would be enough to get your business up in the air only to realize that it can never truly take flight without capital? Don’t worry, you’re not alone. However, now is the time to ask “What is the SBA?” and learn how an SBA loan could resurrect your venture. 

Whether you’re a small or medium-sized enterprise (SME) owner or the head of finance at a small business, this guide will explain all you need to know.

What is the SBA?

The SBA, short for Small Business Administration, is a government agency that was established in 1953 and is designed to support small-to-midsize businesses across virtually all industries. 

Its mission statement is to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns”. As such, the SBA actively delivers a wide range of services to educate and advocate for SMEs. This includes a variety of low-cost training opportunities, the administration of government contracting dollars, and reviewing legislation to protect startups.

Perhaps most notably, though, the SBA promotes access to capital courtesy of microfunding and small business loans. The funding is facilitated by partner lenders.

A brief introduction to SBA loans

As well as asking “What is the SBA?”, you need to know how SBA loans work. They are open to many of the 33 million SMEs in America, although some industries like gambling and life insurance are exempt. Better still, eligible businesses can now complete the entire application process online.

SBA loans fall into several categories, including;

• 7(a) Loans
• Express loans
• Microloans
• Disaster loans

To learn more about the different options and determine which is right for you, check out our guide here. If your business is eligible, our experts can help you identify the best deal.

SBA loan benefits vs. other business loan options

When searching for potential capital and cash flow solutions, all businesses must consider all options While other business loans are available, SBA loans offer many benefits. Here’s why they can provide the best solution for your SME:

• Lower interest rates starting from as little as 5% will aid your short-term cash flow and reduce overall repayments.
• You can borrow up to $ 5 million, although many opt for loans of under $150,000. The option to borrow over 10-25 years also gives you great control.
• SBA loans can be used for debt refinancing, working capital, recruiting employees, marketing, equipment, expansions, and more.
• The application process is straightforward while also offering fast processing to help you access funds quickly.
• SBA loans are further supported by the educational tools and other help provided by the SBA agency.
• They are often available even when other business loans are not available to the company or owner.

As long as you have an OK credit score and meet other basic requirements, SBA loans can deliver a superior outcome for immediate and long-term business needs. 

Contact American Capital Express for all your SBA loan needs

SBA loans are certainly an option that SME owners should consider, not least because they offer a convenient and cost-effective way to gain a cash injection of up to $ 5 million. When taking this path, though, it’s vital that you partner with the right broker. 

Here at American Capital, we specialize in helping businesses like yours by connecting them to the right SBA loan. To learn more about your options and run an eligibility check, contact our friendly experts today.