Houston SBA Loans

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

Houston SBA loans can be nearly ideal for young or established enterprise operations. (They can even be used for new startup ventures, as well.) These commercial debt instruments are put together and backed or guaranteed by the federal government, though the agency itself does not actually loan money. Instead, the application, processing, and funding are done through national and regional banks, credit unions, and private lenders. Read on to learn more about the most popular SBA loans.

Houston SBA loans supply necessary funding for small operations. The most popular service the most demanding purposes, such as working capital, equipment, and machinery purchases, commercial property acquisitions, and startup money, and even for disaster recovery purposes.

The SBA 7a loan program is one of the most accessed since funds are used for expansion, buying equipment, and working capital. This loan program has a maximum of $5 million and terms and rates are generally competitive.

The SBA 504 loan program is another popular option since funds are for purchasing an unimproved, commercial property, purchasing equipment, and similar purposes. This loan also caps out at $5 million.

SBA microloans generally provide up to $50,000 in funding for things such as inventory, materials, equipment, working capital, along with startup cash. Although much smaller than other loan program amounts, these are attractive because they don’t require as big an obligation to the borrowers.

SBA disaster loans can be as much as $2 million and funds must be used for the restoration of business operations, as the name states.

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