SBA Loans in Austin

SBA loans in Austin vary by rate, term, purpose, and other elements. Although the federal government sets the guidelines and standards for SBA loans, it does not process or administer said dead instruments to businesses. Rather, it relies on traditional banks, credit unions, specialty lenders, and others, to qualify and disperse commercial capital funding. Read on to learn more about SBA loans in Austin Texas and beyond.

SBA loans in Austin, like other parts of the lone Star State, and the country as well, are designed with small businesses in mind, be they established companies or start-up enterprises. Because of this, they are structured for different purposes and therefore carry different term amounts. However, interest rates are generally competitive and there are other factors that make them ideal for small businesses. Here are the three most common types used:

  1. SBA 7(a) loan. This is perhaps the most often accessed type of SBA loan program because it offers commercial capital funding for a variety of purposes. For instance, funds can be used for the acquisition of commercial equipment, to purchase commercial real estate, for working capital, and for other purposes. loan amounts range from $50,000 up to $5 million, and terms can run as long as 25 years.
  2.  SBA CDC/504 loan. This is a more specialized type of SBA loan, being limited to the acquisition of commercial real property, and/or buying commercial-grade equipment. It carries a term as long as 25 years, and loan amounts range from $125,000 up to you, and more than $20 million.
  3.  SBA microloan. This type of loan is reserved for new and start-up businesses, to provide working capital, that ranges up to $50,000.