Financial Benefits of SBA Loans

Fredericksburg, CO (PressExposure) December 01, 2009 -- The Advantages of Using an SBA 504 Loan

Welcome to the SBA division of Griffin Capital Funding. We specialize in providing customized solutions to small businesses in need of government guaranteed financing above $250,000 under the 7(a) and 504 program of the SBA. At any time, you may apply online for a SBA Loan. The preliminary application will only take a minute, and will be responded to by one of our loan development officers within one business day.

Other advantages to an SBA 7(a) loans are the availability of working capital and high leverage.In the finance world, credit equals leverage. If you have credit, then you have leverage and so a SBA 7(a) loan gives you high leverage by giving you the ability to finance most of the costs for your projects. For example: if a business looking expand by buying a second location needs to spend a total of $1 million to buy and renovate the location, the borrower would need to come up with at least 20% of the $1 million in order to be financed (that is $200,000 out of pocket). However, with a SBA 7(a) loan, the business has more credit, more leverage, and therefore would be able to finance up to 90% of the costs instead of just 80%. This means that instead of needing $200,000, the business only needs $100,000 in order to make an expansion. To a struggling business, that 10% makes a huge difference.

SBA 504 loans are for businesses that want to leverage up to 90% financing or businesses that are having difficulty securing conventional SBA financing. If your business can prove that it does not have the internal resources that it needs in order to make the payment on the upgrades to its facilities, buy more facilities in order to move, restructure, to grow or buy equipment and machinery that will keep it going or make it better, then you can apply for a SBA 504 loan. The SBA 504 is set up particularly to help small businesses that help or benefit their local community or create valuable jobs. The United States Government understands that small businesses are the backbone of the American economy and this is why they've created special loan programs like the SBA 504 and the SBA 7(a).

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About sbalending provides customized solutions to small businesses in need of government guaranteed financing above $250,000 under the 7(a) & 504 program of the SBA.

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Press Release Submitted On: November 30, 2009 at 5:46 am
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