|
 |
 |
March 9, 2012:
A Quick Glimpse at Small Business Lending
|
|
In Utah, small business is big business! In fact, according to the U.S. Bureau of Labor Statistics, there are more home-based businesses in Utah than any other state in the nation and they make a notable contribution to the state economy.
If you, or someone you know, is considering taking the leap to expand a home-based business or small business, an important first step is to review your financing options and that often leads to securing a loan. It’s key to find a loan that is a good fit for your business.
While there are several ways to finance a business, today we are focusing on Small Business Administration Loans, generally simply referred to as SBA Loans.
What is an SBA Loan?
An SBA loan is initiated, processed and “owned” by a bank—so you still get to decide which bank you work with--but for qualifying loans the SBA works in partnership with the bank to acts as a “guarantor” when the loan meets specific guidelines.
The Small Business Administration has designated AmericanWest Bank as a “Preferred Lender” meaning we are authorized to make lending decisions on behalf of the Small Business Association, which greatly expedites processing among other advantages. We’re proud to be selected by the SBA for this designation.
Are there special advantages to an SBA Loan?
Of course not all small businesses qualify for SBA Loans, but if you do There are potentially several advantages of an SBA loan, including:
- Longer repayment terms
- Flexible repayment options
- Lower down payments
And in turn these key advantages often make for improved cash flow for your small business.
When is it possible to tap into an SBA Loan?
SBA loan programs are available for specific purposes. To give you a VERY general overview they fall into these three categories: There are a few basic types of loan programs available:
- SBA 7(a) Term Loan - financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes.
- SBA Express Line of Credit - a good tool to support capital needs on a short-term basis, such as inventory fluctuations or seasonal working capital.
- SBA 504 Loan- assists in the purchasing of long term assets, such as a building or equipment.
- provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization
Many banks in Utah—like AmericanWest Bank--are actively lending and small business loans are at the top of our list! The key is to remember you don’t need to know all the ins-and-outs... as bankers we work in this every day so let us assist you. If you’re seeking business financing reach out to a trusted banker and he/she will help determine if SBA lending is right for you!
» VIEW ALL FINANCIAL FRIDAY SEGMENTS
|
|
|
