SBA 504 and 7(a) Loans
SBA 504 and 7(a) loans provide you with easy and quick loans to grow your business.
One of the problems small businesses face is a lack of access to financing. And when a business cannot get the funding they need to cover running costs and finance expansion, its growth is stunted. Don’t watch your business struggle. Leverage the power of SBA 504 and 7(a) loans and push your business to the top.
Easy Access
Have your loan applications been turned down in the past? SBA 504 and 7(a) loans give you access to loans that are often denied to small businesses.
Fair Rates
SBA loans offer one of the lowest rates of all loan programs. Since the SBA regulates them, you will enjoy fair rates.
Flexible Funding
The SBA 7(a) loan is flexible. Unlike many loan options, you can use it for a variety of expenses, from construction to equipment.
03. FAQ’s
What are SBA 504 and 7(a) Loans?
To qualify for an SBA 504 or 7(a) loan, your business must be a for-profit officially registered and operating in the United States. The income requirements are also similar. Your business’s annual income cannot exceed $5M, and its net worth has to be $15M or less. Want to know more about the guidelines that regulate SBA loans? Let our knowledgeable professionals connect you with loan options that conform to SBA regulations.
How Do SBA 504 and 7(a) Loans Work?
1. Apply
To begin your loan process, you are required to apply online. The application should include your needs as well as details of your business and other documentation such as cash flow and other financials. This will give our lenders information to work with when considering your offer.
2. Undergo Free Consultation
We will connect you to an experienced capital specialists who will present the loan programs you can select from. Together, you will explore which SBA loan is the most suitable for your business needs.
3. Find a Lender
Here, the information obtained from your application and consultation is used to put an offer together. Our team will find matching lenders, present the offer to them, and help you secure the best lender to work with.
4. Underwrite Your Loan
Once you’ve been matched with a lender, you will work together to underwrite your loan. This involves an in-depth review of your application and finances. Ashpry Capital stands as your liaison with the lender so as to help the process move as quickly as possible. During this time, the SBA also guarantees a loan from a second lender who will provide 40% of the loan amount.
5. Get Funded
Once your loan has been approved, you will be required to provide the down payment. Then, your funds are set.
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Frequently Asked Questions
When is an SBA 504 or 7(a) Loan not a good fit?
SBA 504 AND 7(a) Loans are for small businesses that do not earn beyond $5M annually. If your business’s income is higher than that, let us find a solution that is best suited for your business size.
Where do SBA 504 Loans come from?
SBA 504 loans are funded by a private lender, an SBA-guaranteed second lender, and the borrower’s down payment. The private lender provides 50% of the loan, the second lender contributes 40%, and the remaining 10% comes from the borrower’s down payment.
How long does an SBA Loan last?
The duration of an SBA loan is largely dependent on the purpose of the loan. Typically, they last 25 years for real estate and ten years for equipment. For working capital or inventory, the maximum term is ten years.
Do I need a down payment for an SBA 504 or 7(a) Loan?
Yes, a down payment is required to secure an SBA 504 or 7(a) loan. Generally, the least accepted percentage is 10%, but it mainly depends on the lender. Tell us about your budget, and we will connect you with a matching lender from our extensive network.
