Sunrise Highlight-SBA Loans: Not As Complex As You Think
So, you’re starting a business or need to do an expansion, what do you do?
Many people talk about getting an SBA loan, but it sounds like it’s a complex process.
It’s not as hard as people think. Scott Kranz with Legendary Capital Solutions presented at Sunrise, and he discussed the benefits of applying and getting an SBA loan. Here are Scott’s three takeaways from Sunrise.
- An SBA loan isn’t as tough as people think. Some people think that it’s a long process that will take weeks to complete, but that’s not the case. In most cases you just need to ensure that you can demonstrate excellent personal credit, strong business financials, and provide “adequate collateral.” Depending on your lender, the SBA might also require a personal guarantee for every owner who owns at least 20% in the business.
- Scott's second take away is that it is less expensive then people think. Rate and terms are very good. The typical rate can range from 3.76% to 11.50% depending on the type of loan you are looking at getting into. As for terms, they can be up to 10 or 25 years. This again is dependent on the type of loan and qualifications.
- And the last take away is that SBA loans are a great way to start your business. With great rates and terms, this allows you to not get in over your head with debt.