If you’re starting a new business or you’re ready to improve or expand your existing business and searching for funding, then you’ll want to understand what an SBA loan is. It is a term that gets confused with its connection to a government entity, the Small Business Administration (SBA).
- An SBA loan is one that is partially guaranteed by the SBA, which eliminates some of the risks for the financial institution who is issuing the loan.
- It is not the SBA who is doing the lending. The SBA works collaboratively with a network of approved financial institutions to offer SBA loans to small businesses with better terms.
21st Century Bank is one of a select group of SBA Preferred Lenders, consistently ranking in the top 10 for Minnesota Lenders. Benefits of working with an SBA Preferred Lender:
- In-house approval for quick turnaround
- Dedication to serving the small to mid-size business community
- The expertise and wide range of tools to serve all of your financial needs
In 2017, the U.S. Small Business Administration (SBA) awarded 21st Century Bank a Minnesota Lenders Award for our personalized approach to helping local businesses succeed, noting our commitment, hard work, sound business knowledge and advice along with tailored services to help companies to reach their goals. Our flexible SBA solutions include: (see program details for more info) SBA 7(a) Program SBA 504 Program (“21st” is #1 in SBA 504 loans -FY18) SBA Express Program An SBA loan offers numerous advantages to borrowers over conventional financing including:
- Lower down payment to conserve cash for your business
- Longer terms – up to 7 years for working capital, ten years for equipment, and 25 years for real estate
- Lower monthly loan payment
- Long-term, fully-amortizing terms – no balloon
- Flexible collateral requirements
- Loan Amounts up to $5 million
Learn first-hand how Bev Source and E & M Manufacturing worked in partnership with 21st Century Bank to position their small business for long-term success. For more information on how an SBA loan program can benefit your small business, contact a lender in your area.