Is your business operating in one of the United States’ underserved areas? If so, you may stand a chance to avail an SBA (Small Business Administration) Community Advantage Loan. Any established business with not more than 100 employees can avail these loans. Community Advantage Loans are the most excellent loan choice not only for new but also existing businesses that business capital. You can avail the loan amount from $150,000 to $350,000.
Whether you are looking to start your business or expand the existing one, a portion of each loan is what SBA guarantees. It is important for every applicant to show their ability to pay the full loan amount back. Also, meeting other guidelines in order to be eligible for an SBA Community Advantage Loan is of paramount importance.
What is the Purpose of Using SBA Community Advantage Loans?
An SBA Community Advantage Loan can be used for the following:
- Purchase of machinery, equipment or inventory
- Tenant enhancements
- Working capital
- Leasehold improvements, fixtures, and furniture
- Purchase of business
- Business start-up or expansion
What are the Terms and Rates to Avail an SBA Community Advantage Loan?
The maximum term for working capital and equipment is 10 years and 25 years for real estate. However, rates vary for these loans. Currently, it is as low as 7.5%.
What are the Criteria to be Eligible for an SBA Community Advantage Loan?
- You must have an identified location
- You must not have involved in construction or tenant improvements
- You must add 20% of the total project cost, if yours is a start-up business. 10% is required for financing of business acquisition.
- You must have at least 2 years of experience in the industry you’ve been catering to.
- You must have enough cash flow to support your loan payments each month.
What is the Collateral Required for Availing an SBA Community Advantage Loan?
As a borrower of an Advantage Loan, you are required to pledge available collateral, including:
- Commercial R/E
- FF&E (Furniture, Fixtures & Equipment).
Do you need an SBA Community Advantage Loan? Our loan experts at Biz Loan Bankers will work with you to offer you a bespoke financing package that helps meet your needs.