SBA Loans – Purchasing real estate property for your business
If you are thinking of establishing your own business in the current times, there are a lot of chances that you will be required to do extremely hard work to qualify for the loans. Amongst all the options available for the business loans , SBA loans are one amongst the most popular and there has to be a lot of research before you go ahead and take any of these.
There are a lot of people who are ready to leave their regular jobs and take up businesses in the areas which is more of their interest and offers them the desired amount of money. Entrepreneurship is fast catching up amongst the youth and the success stories which breed in the places like the silicon valley cannot be ignored.
However, getting into a business is not an easy task. One has to decide their day on their own, list down the activities they wish to complete within a day and then have a set tome to call off the day. However, any business requires some amount of fund without which even the greatest of the business ideas would fail to offer the desired results. Any business loan should have a specific goal and a defined time period within which the debtors can repay the loans to the lenders.
Whether you require SBA at a given point of time is a critical decision. SBA is basically designed to spread awareness among the small business owners about the different kinds of loan available for their needs and they guide one into taking the loans which are suitable for their demand and situations. The loans can be the basic start up loans to the equipment or the machinery loans or the Realistic Loans for buying property for the business. This SBA helps you in business loan application process and prepares you into getting your loans approved.
Helping Small Business Owners Buy Their Buildings -SBA loans
Businesses operate within their premises and if you are looking to purchase a piece of land or a property to build your office, SBA loans can be of your help. The lending criteria doffers from one to the other lenders in these kind of loans.
Getting a SBA loan can be a tedious process. Lenders would definitely need to look at the business credentials before they get to a final conclusion and it is for this purpose they would ask for the financials, profit and loss accounts, balance sheets from you for the past three years at the minimum. Lenders do not necessarily need an audited version of the financial data as they have their own team of experts who will look into the data and come out to a conclusion regarding offering you a loan.
In case the property under consideration, has been sub-let by you will be required to offer the documents certifying the same namely the lease or the rent agreement. In case you do not occupy more than 50% of the property area, getting a SBA loan might not be a possibility for you.
You can see that you can obtain very low loan amounts as well as very high loan amounts under these programs.
One can get high, low or even a line of credit under the SBA loan programs. The term for these loans can be extended till 25 years and it offers great support if you are looking for a source of funding which is legitimate and offers affordable rates and flexible repayment terms for the business set up.
One of the most attractive features of the SBA loans are the low loan to value which means that you will be able to get these business loans even with a 10% down payment.
One will have to pay pre payment penalties in case they would want to close their loans early. However, the amount involved in such cases is generally small.
Looking at the aforesaid, acquiring a real estate property for your business can become a lot easier with the SBA loan program.