Sba: Some Answers

Robert asks…

How many years can you finance an SBA loan for?

How many years can you finance an SBA loan for?
I am interested in getting an SBA loan for my business. Is it possible to borrow lets say $500k on an SBA loan and finance over 30 years. And what would the typical interest rate be?

admin answers:

The SBA is a guaranteer of loans. They don’t actual give the loan. Typically to borrow that kind of money, your business would have to be operating for a least 2+ years. You can get a microloan for up to $50K. The APR is decent and repayment time depends (7-10 yrs). I am in the process of trying to get a microloan, it requires less, but it is a great way to get money for your start-up. Good luck!

Mandy asks…

Has anyone ever heard of getting an SBA loan for the downpayment of real estate investment property?

is it possible? is it permissible? i want to buy a plex and on the verge of closing a hardmoney loan to get it, i have the score for conventional stated just not the downpayment required. I have a real estate investment LLC, would it be possible to get an SBA loan just for the downpayment in order to get me started. any all tips welcome. thanks

admin answers:

The SBAdoes not make this kind of loans.

Richard asks…

How hard is it to get an SBA loan?

I am trying to start a new manufacturing company. I already have my product prototyped and have a strong business plan. I need $500k for initial marketing and production expenses. I have about $50k. If the SBA doesn’t pan out, what terms should I offer to investors? How much control of the company should I expect to sacrifice to investors?
Action business coach. Thanks for your help. I would be very interested in going over this in more detail. How can I contact you. my email is slozar1313. it is a yahoo email.

admin answers:

It’s not very hard. The thing is that there is usually a limit of around 120K. Once you get over that amount, it gets difficult.

As an investor, I would want a very detailed breakout of the 500K and what you plan to do with it. Many investors want to see you growing the business before investing. When it comes to control of the company, you have to breakdown how much you want from each person and how that will play into their ROI. From there you can determine the percentage. They key is that you want to always control the company. You must maintain 51% ownership.

I’d be happy to discuss this in more detail with you and would love to review your plan.

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