Beyond PPP: Five resources for financing your business
May 26, 2020 |
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During these challenging times of this pandemic, you may have missed out on EIDL or PPP funding, However, there are five resources to consider for financing the immediate needs of your business.
Your community bank is a great resource to access small business grants, business lines of credit, terms loans and SBA Express, 7(a) and 504 loan financing1.
Five Resources for Financing Your Business
Meet Immediate Needs with a Business Line of Credit
To meet your immediate needs, you should consider a business line of credit. A business line of credit provides quick access to money. But, you only pay interest on funds used.
Dime makes it easy to access cash with a simple Business Line of Credit.
Cover Business Needs with Term Loans
Whether you have short-term or long-term needs, another option for faster access to working capital are Term loans. Term loans help to cover any business-related expenses, including:
- Equipment financing
- Capital improvements
- Business expansion
- Facility remodels
- Emergency repairs
Get Supplemental Help with SBA Express Loans
Whenever you have a need for additional funds, SBA Express Loans are a good option. SBA Express Loan are available through the 7(a) program. Keep in mind, you need to use this loan for business purposes.
SBA Express Loans are typically granted in amounts from $100,000 to $350,000 and terms up to 25 years. They can be used for:
- Providing long-term or short-term working capital
- Accounts payable, purchasing inventory or other operational costs
- Seasonal financing, contract performance, or export
- Purchasing real estate, equipment, furniture, machinery and supplies
- Construction and/or renovation costs
- Establishing, acquiring, or expanding a business
- 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. EIDL and PPP loans can be more restricting. However, SBA 7(a) loans provide a wider range of use options. Loan proceeds can be used for:
- Working capital
- Debit refinance
- Business acquisition
- Lease-hold improvements
- Machinery & equipment
Finance CRE Purchases with SBA 504 Loans
If you’re looking to purchase owner occupied commercial real estate, the 504 loan offers funding between $250,000 to $20 million for 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.
For additional resources, you might consider looking into state and local grants or contacting your local Chamber of Commerce. These local business associations often serve as a good source for making key contacts and networking.
Need to Talk to a Banker
If you are a business owner, sole proprietor/practitioner or financial officer, Dime Community Bank is here to work with you through this crisis. As a Preferred SBA Lender, Dime will move you through the process so you can get faster access to working capital.
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.
1 All loans are subject to Dime approval.