SBA LOANS

Government-backed loans for small business growth needs.

SBA LOANS

An SBA loan is a small business loan guaranteed by the U.S. Small Business Administration (SBA). It provides financial assistance to small businesses that might not qualify for traditional bank loans.

Who should consider an SBA loan?

  • Small businesses needing capital for startup expenses, expansion, equipment, or working capital.
  • Businesses with limited access to conventional financing.
  • Entrepreneurs seeking favorable loan terms and lower down payments.

How they work:

The SBA doesn’t lend directly; it guarantees a portion of the loan to lenders, reducing their risk. Borrowers apply through participating banks or lenders. If the borrower defaults, the SBA covers a part of the loss, making lenders more willing to lend.

Typical loan terms include longer repayment periods and lower down payments.

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Lower down payment

Favorable interest rates

Benefits of SBA loans:

  • Lower down payment requirements.
  • Favorable interest rates.
  • Longer repayment terms.
  • Access to capital for businesses that might not qualify for traditional financing.
  • Supports business growth, equipment purchase, real estate, and working capital needs.

Regarding tax benefits, borrowers’ loans may enjoy:

  • Annual Tax Deductions: Mortgage interest payments on the loan are typically tax-deductible, reducing taxable income.
  • Depreciation Benefits: The property can be depreciated over time, leading to annual deductions that improve cash flow and reduce tax liability.
  • Many of your closing costs and interest paid on the loan could be used to lowering taxable income