The United States Small Business Administration (SBA) is an agency of the United States Government which helps the small businesses to grow. The SBA has especially designed programs, with help of which, they are able to provide loans to newly established and small businesses.
Benefits of SBA unsecured loans
Most of the loans that are provided under the SBA program are SBA unsecured loans. Unsecured loans mean loans that are provided without any collateral or security. The great advantages that small businesses have by using this facility is that loans can be paid over a longer period of time. Also, the interest rates that are fixed by the lending institution under this program are also low. This flexibility in essence is given to the small businesses, because they are new and trying to gain a foothold in the industry. Also, demand for a large amount can be approved by the lending institution under this program. Thus, it is no surprise that many small businesses are taking the SBA unsecured loans. They trust the process.
What are the qualifications required for SBA unsecured loans?
There is flexibility in the qualifications given to the small businesses when they want to secure SBA unsecured loans. The first requisite condition is that the business should be in operation for at least 2 months. Second condition is that the business owner(s) should have a credit score of 620 and above. The third condition is that the annual revenue must be over and above $100,000.
Flexibility in terms of utilisation of loans
Once the loan amount is approved, the small business owner who has taken the loan can utilise the funds according to his or her own will. There is no compulsion on using the funds for the purpose for which the loan has been taken. Also, the small business owner gets the freedom if he or she wants to use the loan amount at all. The cash flow will continue.
More funding for small businesses
Small businesses need not look elsewhere. The SBA unsecured loans are one stop solution to all the funding needs. One can get loan as high as $5,000,000 for interest rates as low as 6.75%. The small businesses can get their desired loan amount in a period of less than 3 weeks. Also, the loan amount can be provided to the small business for a time period of 5 to 25 years.
The record of providing loans to the small businesses through SBA unsecured loans is high. Thus, a small business owner who is in need of money to build his or her business must visit the website of the lending institution and check out if they provide SBA unsecured loans. If they do, please contact them and they would be more than happy in advancement of your business.