What are advantages to SBA loans versus conventional loans?
First, SBA loans allow people who originally thought they could only lease equipment to consider purchasing instead. The SBA can usually provide longer terms for loans on capital equipment. On some capital equipment, an SBA loan will go up to 15 years for amortization and term. Also, the SBA generally offers more favorable rates than conventional loans and requires a lower down payment. For example, if you were to purchase general purpose real estate, a bank would most likely demand 20 percent down. For an SBA loan, you can put down 10 percent. This is a clear opportunity for business owners who do not want to tie up cash flow in a down payment, yet want to invest in property, equipment or other capital to grow their businesses. What are the key differences between an SBA 7(a) and 504 loan? Essentially, 7(a) loans are used for acquisitions, working capital and real estate. An offshoot of the 7(a) is the SBA Express, for lines of credit and smaller loans under $350,000. 504 loans help f
