Houston SBA Loan

Published By: Dennis Handa
Published On: 26th April 2021

Houston SBA loans offer a variety of funding options. These uses include expenses such as start-up money, working capital, inventory buys, equipment acquisition, purchasing property, commercial expansion, as well as disaster relief. So, take a few moments to read on to learn more about Houston SBA loans and the key points you need to know.

Houston SBA loans are made available through banks, credit unions, and other lenders but are backed by the federal government. Terms and conditions vary, including interest rates. But, in general, they offer specific-use commercial purposes. Here are a few details about the four most common types of SBA loans:

  1. SBA microloans. Applicants of microloans can borrow up to $50,000 and must use the funds for buying inventory, purchasing equipment, working capital, and start-up funds.
  2. SBA 7a loans. Applicants of 7a loans can borrow as much as $5 million. The funds are for existing businesses that wish to expand their operations, buying commercial machinery, as well as working capital.
  3. SBA 504 loans. Applicants can also borrow up to $5 million with 504 loans. Funds are available for the acquisition of business equipment, purchasing facility space, or buying vacant land or unimproved commercial property.
  4. SBA disaster loans. Applicant businesses might qualify for as much as $2 million. Of course, companies who apply must be impacted by a natural disaster and funds must be used for recovery expenses.

As you can see, SBA loans are intended for a variety of purposes, offered through different commercial lending programs.

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