Austin SBA loans come in a variety of packages, meaning each is tailored for specific purposes. The small business administration sets the borrowing standards and funding amounts, along with the allowable uses. However, the government agency itself does not make loans to businesses. Instead, the entire process is handled by national and regional banks, credit unions, and private lenders. So, read on to learn more about Austin SBA loans and what you need to know.
Austin SBA loans are generally administered through four different programs. These include, but are not limited to, the 7a loan, 504 loan, microloans, and disaster loans. These four are the most popular because they are designed specifically for certain business purposes. Here’s how they breakdown:
- The 7A SBA loan program allows businesses to borrow up to $5 million for expanding their operations, supplying to expand their operations, supply working capital, and purchasing machinery, equipment, and similar items.
- The 504 SBA loan program also allows Enterprise organizations to borrow as much as $5 million. But, funds must be used to acquire vacant and/or unimproved property, the acquisition of a facility, or for similar purposes.
- SBA microloans are intended for smaller needs and go up to as much as $50,000. Funds may be used to buy equipment, purchase materials or inventory, for working capital, and startup money.
The SBA disaster loan program is self-explanatory. Businesses impacted by natural disasters can qualify for up to $2 million in relief funds. As with all SBA loan programs, disaster loans have their own requirements that applicants must meet.