What is the SBA 7(a) loan program?
Answer :
The SBA 7(a) program is the agency's primary loan program, providing loan guarantees to lenders to encourage them to provide funding to small businesses for various purposes.
Here are key features of traditional SBA 7(a) Loans:
Huddle Biz LLC offers a special variation of the SBA 7(a) loan program designed to address the challenges of traditional SBA loans. This program allows businesses to borrow 100% of the requested amount, (as opposed to 85%), up to $450,000, disbursed over three $150,000 draw spaced 90 days apart.
Unlike traditional SBA 7(a) loans, which can take up to 6 months to close, this special program boasts a quick turnaround time, with loans typically closing under two weeks. The expedited process is made possible by simplified documentation requirements and a credit-based evaluation approach.
Similar to the unique microloan program, this special 7(a) loan program focuses primarily on the borrower's creditworthiness rather than cash flow or collateral. This makes it accessible to a broader range of businesses, including those with limited assets or operating history.
The convenience and accessibility offered by this special 7(a) loan program make it highly attractive to small businesses seeking rapid funding solutions. The potential market value of this program is significant, as it addresses the growing demand for streamlined lending options that prioritize speed and simplicity.
Written by: Huddle Biz
Here are key features of traditional SBA 7(a) Loans:
- Loan Guarantees: The SBA guarantees a portion of the loan, reducing the lender's risk and making it easier for small businesses to access capital.
- Flexible Use of Funds: Borrowers can use 7(a) loans for a wide range of business purposes, from starting a new business to expanding operations or purchasing real estate.
- Competitive Terms: SBA 7(a) loans typically offer longer repayment terms and lower down payment requirements compared to conventional loans.
- Eligibility Requirements: Small businesses must meet certain criteria to qualify for SBA 7(a) loans, including size standards, use of funds, and demonstrating the ability to repay the loan.
Huddle Biz LLC offers a special variation of the SBA 7(a) loan program designed to address the challenges of traditional SBA loans. This program allows businesses to borrow 100% of the requested amount, (as opposed to 85%), up to $450,000, disbursed over three $150,000 draw spaced 90 days apart.
Unlike traditional SBA 7(a) loans, which can take up to 6 months to close, this special program boasts a quick turnaround time, with loans typically closing under two weeks. The expedited process is made possible by simplified documentation requirements and a credit-based evaluation approach.
Similar to the unique microloan program, this special 7(a) loan program focuses primarily on the borrower's creditworthiness rather than cash flow or collateral. This makes it accessible to a broader range of businesses, including those with limited assets or operating history.
The convenience and accessibility offered by this special 7(a) loan program make it highly attractive to small businesses seeking rapid funding solutions. The potential market value of this program is significant, as it addresses the growing demand for streamlined lending options that prioritize speed and simplicity.
Written by: Huddle Biz
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Related questions
Who is the Small Business Administration (SBA)?
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