- On January 3, 2017
The 2016 election results have created much optimism among a large number of business owners and potential business buyers. Many in the business community believe that 2017 and the coming years will be great for business and desire to participate and benefit from expected growth. One significant barrier to such participation may be the difficulty in obtaining conventional financing. So, whether buying a business, desiring to assist others to buy your business, starting a professional practice, expanding a business, opening a new location, hiring employees, refinancing an existing loan, or achieving other business goals, one financing consideration is the U.S. Small Business Administration (SBA).
SBA loans are small-business loans guaranteed by the SBA and issued by participating lenders, mostly banks. The SBA offers a wide variety of loan programs for businesses at various stages of development. Because the federal government has a vested interest in encouraging small business growth, when compared to conventional commercial loans, some SBA loans offer (i) less stringent requirements for down-payment, owner’s equity and collateral and (ii) better rates and terms. SBA loans can also be for smaller sums than most banks are willing to conventionally lend. Various SBA programs have different parameters; e.g.; The primary and work flexible SBA 7(a) loan program can guarantee up to 85% of loans for $150,000 or less and 75% of loans for more than $150,000. The maximum SBA loan amount is $5 million. The pay back period can be 25 years for real estate and 10 years for working capital.
Kelleher & Buckley, LLC is a great place to start when exploring all business issues, including SBA matters. K&B has the experience, knowledge and banking relationships to successfully assist you. If you have any questions about our services, or can benefit from what K&B offers, please call Andrew Kelleher, David Buckley or Helmut Gerlach at (847) 382-9130. Please note that this discussion is not intended to be, and is not, legal advice.