Choosing SBA Real Estate Loans

The Small Business Administration provides loan programs intended to encourage small business borrowing and entrepreneurship. The SBA does not provide loans by itself but provides guarantees on big proportions of loans handed out by approved lenders. By providing these partial guarantees, the SBA provides a chance for small business owners to avail low-interest, long-term loans, which they would have found difficult to qualify for otherwise. This is made possible by making apparently risky investments enticing for lenders.

SBA real estate loans, like other SBA loans, offer excellent rates and terms which are hard for most small business owners to find due to the high requirements they come with. In case you are one of the qualified borrowers, you have two options at your disposal: the versatile 7(a) loan and the real estate 504 loan.

In order to arrive at the loan that suits you the most, you will need to be clear on what you prioritize. You have to know whether you need funding for a small business that invests in real estate, or if you want to use it for other types of investments. The ability to answer this question will help you choose the right path and move forward with your business.

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