We recently explored some of the most important items to consider when using an SBA loan to help grow your small-business in The Pros and Cons of SBA 7(a) Loans. Although SBA loans may require time and effort, the long-term advantages outweigh the cons for many small-business owners. Specifically, those owners interested in longer repayment periods and lower interest rates.If you’ve made the decision to pursue SBA financing, the application process can seem intimidating in the beginning. However, keeping these four main areas top-of-mind can help you efficiently and effectively navigate the process from start-to-finish.
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Barring any unforeseen market events, 2019 should continue to be a year of slow, positive growth for SBA 7(a) loan secondary market premiums. Last year, we experienced some of the steepest declines in secondary market premiums in years, with 10-year, fully priced SBA 7(a) premiums swinging nearly 340 basis points between FY Q2 and Q4.
If you’re a small-business owner looking for capital to expand, you’ve likely come across SBA 7(a) loans – the nation’s most popular type of loan offered through the U.S. Small Business Administration (SBA).One common misconception is that the SBA lends directly to small-businesses. In reality, the SBA 7(a) Loan Program partially guarantees loans made by banks or other direct lenders to eligible small-businesses. The program aims to promote economic growth by encouraging lenders to partner with small-businesses that may be struggling to secure financing on reasonable terms. Because of the guaranty, SBA loans tend to have lower monthly payments than other types of loans. However, there are some drawbacks that must be considered prior to getting started with your application.
According to the ICBA, community banks represent roughly 99% of all banks in the United States and make nearly 60% of all small-business loans across the country. By lending locally, these institutions drive economic growth within our communities and are an integral part of our nation’s financial system. While the SBA’s flagship 7(a) program fell
The SBA’s flagship 7(a) program fell just short of another record setting year in FY2018, with $24.37 billion in authorized loan volume through the 12 months ended September 30, 2018. Had this number reached $24.45 billion, FY2018 would have represented the sixth consecutive year of overall growth. Despite the growth streak being snapped (which could
In one of our recent articles, A Beginner’s Guide to SBA 7(a) Lending, we explored a few of the basic fundamentals of the SBA lending industry. Although this framework was geared to help guide novice SBA lenders, many of the key risks highlighted in the article predominantly occur when proper controls are not thoughtfully established