San Antonio SBA loans come in several different forms, making them ideal for all kinds of situations. For instance, there are four primary types of small business loans in San Antonio and beyond: the 7(a) loan, the 504, a microloan, and a disaster loan. So, read on to learn more about San Antonio SBA loans and what you need to know.
San Antonio SBA loans are federally backed debt instruments, made available through various lending institutions, including banks, credit unions, and more. Commercial loan programs are designed — more or less — for specific sets of circumstances. Meaning, you should know which loan to apply for in the first place. Here’s a quick breakdown:
- SBA 7(a) loan program. Funds from a 7(a) loan can be used for working capital, buying equipment, or expansion. These loans can be as much as $5 million but can also be a lot less.
- 504 loan program. Funds from the 504 loan are made available unimproved real property (vacant land), t buy commercial equipment, or purchasing facility space. This type of loan is also available for up to $5 million.
- Microloan program. Funds from microloans are for the purchase of business inventory, buying commercial equipment, working capital, as well as start-up seed money. Unlike the above loan programs, SBA microloans are generally limited to $50,000.
- Disaster relief program. Existing businesses impacted by natural disasters (and other circumstances) can apply for disaster loans, which can be as much as $2 million.