The best kept secret in business loans
The US Small Business Administration (SBA) offers a special loan program for small business owners. Keeping up with modern technology and the need for a consumer-based business solution, the SBA now offers great, easy-to-use services for all small business owners who really want to build their business for better profits.
The SBA has set aside a budget of almost $24 billion for its SBA 504 loans that is used just for this purpose and is to serve and help small businesses. These loans are dynamic and many people are still unaware of their value due to faulty or outdated information making their circle among informed lenders.
Slowly but steadily, entrepreneurs like brokers, franchisors and accountants are putting their trust in 504 loans and now they know that this loan is designed just in time to meet their needs in the market. Compared to any private sector financier, 504 loans are much better in the way they offer long-term, below-market, fixed financing rates. These loans are very beneficial and less expensive. Long-term mortgage plans are for 25 years and the SBA bond has also not increased in the last 20 years.
To waive balloon payments and online loan fees, conventional methods are used. Last year alone, nearly $14 billion was sent as equity investment to nearly 9,720 small businesses across the US. These loans also created about 112,000 jobs as small business owners invested in the equity savings . 504 loans provide cash flow sensitive and capital preservation loans, directly helping small business owners expand their businesses faster.
504 loans are run by the state federal department and are one of the highest rated domestic programs used for economic development and their funding growth is increasing at a rate of 22% per year since 2000. There is no cap or cp for loans the amount of these loans and non-public companies that are only for profit receive these loans. However, there are three established financial standards for small business credit scoring.
Any business whose net worth is less than $7 million qualifies for these loans. Net operating income for the previous two months must average less than $2.5 million each year. The third qualification criterion is that the borrower must not have non-retirement liquid assets greater than the amount to be financed. Based on these qualifying specifications, nearly 98% of businesses in Florida qualified for these loans.
Anyone with a franchise license or history can apply and qualify for the loans. Even service professionals like doctors, accountants and lawyers etc. They also apply for 504 loans. The terms and conditions are simple and uncomplicated, and every small business owner should first consider applying for these 504 loans before looking at other more expensive and complicated private loans.
