Questions and Answers about Small Business Loans

If you are one of the millions of individuals who dream of starting and owning their own businesses, know that you are not alone. But when it comes to finances, taking the very first steps to make your dream a reality may seem overwhelming. However, it does not have to be like that. Loans are available to get you started. In particular, one option that is available is a small business loan. Here are some of the main points you need to know about securing a small business loan and starting a business.

SBA 7(a) Loans

The main program available to provide financial assistance for those individuals involved in operating a small business is the

7(a) loan program. There are many types of loans available, and the percentages, conditions, and terms vary according to the loan that you are interested in obtaining. Among the loan options available are the 7(a) Small Loan, the Export Express Loan, the International Trade Loan, and a special Veterans Advantage program for businesses that are run by 51% or more of veterans. The turnaround time for these loans ranges from 24 hours to approximately 5-10 business days.

The 504 Loan Program

Probably the most popular and helpful of all the SBA Loans is the 504 Loan program. Essentially, three parties share this loan. a bank will normally put up 50%, you as a homeowner is responsible for contributing 10%, and the remaining 40% is financed by what is known as a Certified Development Company. These are companies throughout the nation that are set up as nonprofits in order to encourage and promote business and economic development within their local communities. This is particularly relevant since it directly impacts America’s towns: nearly 60% of all new jobs are created by small businesses, and small businesses employ nearly half of all the workers in America. It is important to also remember that as time goes by and your business grows, another option that will be available to you will be the SBA refinancing loan, to keep your business thriving.

Keep Good Records

One of the most important aspects of going into business with a small business loan is making sure that your documentation is always organized and up-to-date. Make sure you keep really good records of everything. Among some of the documents that it will be necessary for you to keep as you go along the process of applying for a loan opening your business running your business will be Your personal business and tax returns, your personal financial statement and personal history statement, your business lease and business license, and your borrower’s information form from the SBA.

As an individual wanting to become a business owner, it makes sense to consider a small business loan. The number of businesses that last five years or more hovers around 50%, so your chances of making it are very good. Getting that SBA loan will get you on your way to making your dream a reality and make you a success story in the community of small business owners.

Click here to learn more about how LCD Group can make your small business goals become reality.