3 Essential SBA Loan Options for Small Businesses

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Whether you are a start-up business or existing business, you should know the 3 essential SBA loan options for small businesses.

As a business owner, you face challenging decisions daily. From cash flow to business growth, you need access to working capital.

SBA loans are designed to benefit small business owners. For example, they provide buying power and flexibility through the wide range of funding levels. And, they provide low-interest rates. To meet your business needs, you should consider SBA Express, 7(a) and 504 loan financing1.

What you Need to Know to Get Started

What is an SBA loan?

In short, SBA loans are backed by the Small Business Administration (SBA) and financed through individual banks. Importantly, the SBA guarantees between 50-90% of the loan in case  it defaults. As a result, SBA loans provide attractive, low-interest rates.

Who should I speak to?

Your community bank is a great resource to access SBA loans. Your bank SBA specialist will help you determine which loan is best for your business.  As a Preferred SBA Lender, Dime will move you through the process so you can get faster access to working capital.

3 Essential SBA Loan Options for Small Businesses

Get Supplemental Help with SBA Express Loans

If you have a need for additional funds, SBA Express Loans are a good option. SBA Express Loans are available through the 7(a) program and granted in amounts from $100,000 to $350,000 at terms up to 25 years. And, they cover the following uses:

  • Providing long-term or short-term working capital
  • Purchasing real estate, equipment, furniture and supplies
  • Construction and/or renovation costs
  • Refinancing business debt

Cover A Wider Range of Needs with SBA 7 (a) Loans

One of the main SBA loans for supporting small businesses is the SBA 7(a) loan. This loan offers up to $5 million for borrowers on terms up to 25 years. Moreover, it provides a wider range of use options:

  • Working capital
  • Debit refinance
  • Business acquisition
  • Lease-hold improvements
  • Machinery & equipment purchases
  • Start-ups

Finance CRE Purchases with SBA 504 Loans

For purchases of owner-occupied commercial real estate, the 504 loan offers funding between $250,000 to $20 million. That includes long-term rates of 10 years with a 25- year amortization. In addition, SBA provides 90% financing and the borrower provides 10% equity. Loan proceeds can be used for:

  • Owner occupied commercial Real Estate purchase
  • Renovations/Improvements to the property
  • Eligible soft/Closing costs

For more information about SBA Express Loans, 7(a) loans or 504 loans, visit dime.com/SBA or contact a Dime SBA relationship manager at 718-358-7619.

Be Prepared When You Meet with Your Banker

The more prepared you are, the smoother the process will be when you file. So, keep these best practices in mind before you meet with your banker:

  • Talk to your accountant
  • Determine your business size through the SBA business sizing tool.
  • Keep good records about your business
  • Make sure you have documentation for your tax returns and recent financials
  • Complete a Personal Financial Statement Form 413

Talk to Your Banker

If you are a business owner, sole proprietor/practitioner or financial officer, Dime Community Bank is here to work with you.

To speak to a local Dime business relationship manager, please call 800-321-3463 to schedule an appointment. Or, visit dime.com/branches to find your local Dime branch.

Need Help with Financing Beyond PPP?

Your community bank is a great resource. Learn about these five resources to consider for financing the immediate needs of your business.

1  All loans are subject to Dime approval.

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