Mention the Small Business Administration to most business owners and you’ll most likely hear a collective groan of frustration. It’s true. The SBA hasn't exactly been the bastion of innovation over its 61 year history. But over the past two years, the SBA has been very quietly updating its guidelines and its lending processes. So much so, that it has increased its funding guarantees 30% year over year since 2010, and it shows no sign of slowing down.
The secret that ALL business owners need to know about the U.S. Small Business Administration is this: They have reviewed and updated their funding guidelines in late 2012, and there are some significant (and POSITIVE) changes:
- $30 BILLION dollars is now available to community banks for SBA Lending
- The primary loan (called the 7 (a) loan) is now 75% government guaranteed, incenting banks to increase lending to small businesses
- Most business debt can be refinanced, including commercial loans that may be in jeopardy of being "called" by an existing bank
- More flexible guidelines have been adopted for 10% down real estate purchases
- Credit and Cash Flow Guidelines have been relaxed
- Size standards for SBA qualification have increased – Small Businesses are now defined as having less than $15 Million Net Assets and earning less than $5 Million Net Profit.
- Revolving Lines of Credit are now available in amounts from $150,000 to $5 Million
SBA Financing has many benefits over commercial financing. Lower payments, longer terms, easier qualification guidelines, start-up funding, low down payments for real estate purchases, 100% financing for established businesses, and assumable loan availability are ALL benefits of obtaining an SBA loan.
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Fast SBA Funding is an industry leader in small business financing and has consultants standing by to help small business owners capitalize on these important changes. Our proprietary process helps qualified small business owners obtain SBA Funding in 60 days or less!
Sign up for your free consultation at www.fastsbafunding.com or learn more by attending one of our weekly webinars at www.sbawebinar.com.
