Loans from the Small Business Administration offer a low-interest, low-risk method of small business financing, but they can take time to finalize due to lengthy paperwork reviews. The most common SBA loan program, the 7(a) loan, allows small business owners to borrow up to $5 million, closing in an average of 120 days.
There are programs designed to help business owners access smaller investment amounts and do so quickly. If you’re looking for the same benefits of a traditional SBA loan with a faster timeframe, an SBA Working Capital loan may be right for you.
Working Capital loans offer a simple small business financing solution for entrepreneurs needing $25,000 – $150,000 to start operating their business. These loans provide the same government guarantee and low interest rates as traditional SBA loans, but they can close in as little as 45 days — half the time it takes to close a traditional SBA loan.
Unlike other loans that require 20 – 30 percent capital injection and must be secured by personal collateral, Working Capital loans only need 10 percent down and are secured by your business assets. Plus, Working Capital loans can be used in conjunction with Rollovers for Business Start-ups, so you can leverage your retirement funds to cover the down payment for the loan.
Similar to traditional SBA 7(a) loans, the SBA does not administer Working Capital loans directly to small businesses. Rather, they provide loan guidelines to their partner lenders. Our experienced loan consultants will help you gather the necessary paperwork, then match you with the lender that’s right for your needs.
To learn more about SBA Working Capital loans, give us a call at 888.472.4455.