Dallas SBA Loan

Published By: Dennis Handa
Published On: 19th April 2021

Dallas SBA loans provide businesses with needed capital for several purposes. These typically include the purchase of the commercial real estate, buying business equipment and/or inventory, expanding enterprise operations, start-up funds, working capital, and even money for businesses to recover from natural disasters. So, read on to learn more about SBA loans in Dallas and what you need to know about each type.

Dallas SBA loans, like those in other markets, are established by the federal government but the loans themselves are made available through banks, credit unions, as well as other lenders. However, the federal government makes the rules and guarantees the debt instruments. Generally speaking, there are four types of SBA loans, which include microloans, 504 loans, 7a loans, and disaster loans. Here’s a quick look at each loan program offered through the SBA’s guidelines:

  1. Microloans. As the name implies, microloans are relatively smaller in monetary terms, as much as $50,000. Funds are for expenses such as start-up money, working capital, and purchasing inventory and/or equipment.
  2. 504 loans. Commercial 504 SBA loans can go up to $5 million and funds are for the purchase of vacant or unimproved real property, buying machinery, as well as acquiring facility space.
  3. 7a loans. This loan program also goes up to $5 million. But, funds are made available for working capital, purchasing business equipment, or expansion.
  4.  Disaster loans. Of course, these funds are for businesses impacted by some form of disaster and generally go up to $2 million in size.

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