If you are a small business owner, wading through all of the financial options available to you can be challenging. Finding the right loan for your business is extremely important, and not something that should be overlooked because you don’t understand all that is involved. The U.S. Small Business Administration (SBA) breaks down what exactly an SBA loan is, the types that are available and how to determine which one is right for you, and whether or not you are eligible and if so, how to apply.
Defining SBA Loans
SBA loans are not distributed in order to help entrepreneurs grow or start businesses. What it actually does is provide a guarantee to banks for the money that they are loaning to small businesses. If the business owner were to default on the loan, the SBA is guaranteeing to pay a portion of it back. An SBA loan is giving peace of mind to those lending money to small businesses, start-ups, veterans, etc. Your bank or local SBA District Office will discuss with you which type of loan is suitable to your business, if any.
Types of SBA Loans
There are several different types of loans available to cover a wide range of business opportunities such as:
- Financing for seasonal working capital or major fixed-assets
- Disaster recovery (for businesses, homeowners, renters, nonprofits and more)
- Microloans (under $50,000)
Your lender will walk you through the application process and let you know of any eligibility criteria and preparation you need to consider.
Still not sure which loan is right for you? Sometimes the terminology can be confusing, and choosing the loan that best matches your business needs might seem fuzzier than ever. Luckily there’s a handy Loan Wizard! This resource will ask you a series of questions to help you figure out what kind of loan is most suitable for your business. Wondering what lenders scrutinize when deciding what kind of loan to offer? Your equity investment, earnings, working capital, collateral and resource management will all be taken into consideration. Learn more, here.
Figuring out your loan is the challenging part, opening your own retail store and filling it with retail store displays and gondola shelving shouldn’t be. Let the professionals at Handy Store Fixtures help you not only outfit your store with the best in retail display, but create a store layout and plan that will help you maximize sales.