Even if you have a brilliant business idea, funding is one of the trickiest aspects of starting a business. In this post, we discuss how to use SBA loans to start a business, and talk about other financing options you should keep in mind.
Can SBA Loans Be Used To Start a Business?
The answer is Yes. You can use an SBA loan to start a business. In fact, the stated goal of the Small Business Administration (SBA) is to help Americans start, build, and grow businesses.
From microloans to loans designed to purchase major assets, the SBA offers a wide variety of loans.
However, if you want to start a business, chances are good that the SBA loan program that works for you is one known as 7(a), after one of the sections of the Small Business Act.
What Can a 7(a) Loan Be Used For?
7(a) loans are the most popular type of SBA loan due to their versatility. Some of the ways you can use a 7(a) loan include:
- Long- and short-term working capital
- Revolving funds based on the value of existing inventory and receivables
- Purchase of equipment, machinery, furniture, fixtures, supplies, or materials
- Buy real estate, including land and buildings
- The construction a new building or renovation an existing building
- Establish a new business or assist in the acquisition, operation or expansion of an existing business
- Refinance existing business debt (under certain conditions)
It’s worth noting that the SBA doesn’t lend money itself. It just provides a government guarantee that helps you access more convenient terms.
Alternatives to SBA Loans
While SBA loans are useful, there’s no one-size-fits-all solution in business financing.
For example, SBA loans offer less stringent terms compared to bank loans, but they also set strict rules about the ways you are allowed to use the loan.
The great news is that regardless of whether you want to take advantage of an SBA loan or explore other alternatives, Gellyfish Commercial can help.
With options ranging from SBA loans to bridge loans and revenue-based loans, choosing Gellyfish means starting your new venture off the right foot. Contact us today to get started on a financing solution that meets your needs.
Gellyfish: Business Loans in California and Beyond
Looking for business loans that combine flexibility and certainty of execution? Gellyfish Commercial is the answer!Contact us today by email (email@example.com), telephone (877-800-4493), or social media (Facebook, Twitter, LinkedIn), to schedule a free consultation or to learn more about our financing solutions.