Greater Globe AllianceTM 

SBA Guarantee Loans

Small Business Administration / SBA Loans 

An SBA loan is a business loan partially guaranteed by the U.S. Small Business Administration (SBA). This guarantee reduces the loan risk for partner lenders. Hence making it easier for small businesses to get the growth funding for things like working capital, certain real estate, or machinery or equipment. Since the lender’s risk is hedged these government backed loans often come with lower interest rates and better terms than conventional loans. The SBA does not directly lend the money (except in disaster situations) but offer a backing of certain business borrowers by guaranteeing a percentage of the loan  to the registered lender encouraging them to approve more loans that businesses usually might not otherwise qualify for. The most common type is the 7(a) loan, 504 Loans, Micro-Loan used for various business needs, but there are several types and for different purposes. 

An SBA loan can provide essential funding for small businesses, offering lower down payments, longer repayment terms, and flexible eligibility compared to traditional bank and conventional loans. The SBA guarantees these loans, reducing risk for the lender;(financing companies, banks, financial institutions, etc..) and resulting in lower interest rates for borrowers. In addition to competitive rates, the SBA also offers guidance and resources to support business growth. However, first-time applicants should expect a longer approval process.

 

How it Works

  • The business borrower applies directly to a lender: 

You apply for the loan through a SBA registered lender that can be a financing company, or your traditional bank or  local credit union, not to the SBA directly. 

  • Lender requests guarantee from the SBA: 

Once you apply to the lender, the lender then asks the SBA to guarantee a portion of the loan (e.g., 50% up to 85%). 

  • SBA reviews and if approved, SBA guarantees that repayment percentage to lender: 

If the business defaults, the SBA pays the lender back for the guaranteed portion, reducing the lender's risk. Since the lender’s risk is less (“because of the guarantee) the lender gives the borrower a lower interest rate (“less risk = lower interest rate percentage”) and better terms and conditions on the loan. 

 

Key Benefits

  • Easier to qualify: The SBA guarantee makes funding accessible for businesses that norally don't meet strict conventional lending criteria for specific type loans. 
  • Favorable terms: Often comes with lower down payments, lower interest rates, and longer repayment periods. 
  • Versatile use: Can be used for a broad range of business purposes. 

Used FOR:  Businesses can use SBA loans for working capital, equipment, real estate, or refinancing existing debt.Startup costs and many other business related reasons.

Greater Globe Alliance network also has several SBA; (“Small Business Administration”) certified; registered Lenders that our clients can tap into. The advantage is that the GGA team can help your business use and obtain these types of guarantees as a financing tool to benefit certain business and its uses. We are dedicated to providing our clients a means to prepare for and have access to the most effective financing tools available in the market to them, when appropriate. We will help you understand and navigate through all its intricacies with clear uses understanding of its benefits, so your business can know how and when to use the right financing tool. SBA guarantees is one of the many available to our clients.

Let us, Provide You with Expertise, Understanding and All The Market Resources Available For Your Business To Secure Next Level Growth Goals. GGA Provides You All Available So You Can Take Your Business Growth Plans To The Next Level.

 

Will not affect your business or personal credit score