A business development officer at Pinnacle Real Estate Group, Inc., Bruce Nosanchuk has been working in the lending industry for more than 20 years. Over the years, Bruce Nosanchuk has become familiar with a variety of lending options, and he is particularly knowledgeable about SBA loans.
To ensure small businesses receive the help they need, the Small Business Administration (SBA) maintains several loan programs. Below are a few common types of SBA loans available to qualifying businesses:
- SBA 7(a): These loans are primarily used to assist small businesses and startups with financing for general business purposes, such as working capital or the purchase of furniture. Offering a significant amount of flexibility, SBA 7(a) loans may last for seven to 25 years and are available in amounts up to $5 million.
- CDC/SBA 504: Largely used to cover the purchase or improvement of a company’s assets, CDC/504 loans can be obtained for up to $20 million. The SBA backs only about 40 percent of 504 loans, and the interest rate is typically in line with the five- and 10-year United States treasury rates.
- Microloan: On average, microloans feature interest rates between 8 and 13 percent and are made in the amount of $13,000. However, they can be made in amounts up to $50,000. Many microloans are given out through community-based, nonprofit organizations. If the loan defaults, the SBA pays money to these organizations.
