SBA Guaranteed Loans are designed with small businesses specifically in mind.

The Small Business Administration does not actually make loans to businesses, except in the case of federally declared disasters. Instead, they guarantee a portion of a loan made to a small business on behalf of a lender. This additional guarantee allows for lower down payments, more flexible overhead requirements, and lower interest rates.  They can even help franchises.

There are two types of primary SBA Loans – 7(a) & 504. Each Loan type can be up to $5,000,000:

7(a) – Which can be used for the following:

• Acquiring, refinancing, or improving real estate and buildings
• Short- and long-term working capital
• Refinancing current business debt
• Purchasing and installation of machinery and equipment, including AI-related expenses
• Purchasing furniture, fixtures, and supplies
• Changes of ownership (complete or partial)
• Multiple purpose loans, including any of the above

504 – Which can be used for the following:

The purchase or construction of:

• Existing buildings or land
• New facilities
• Long-term machinery and equipment with a useful remaining life of a minimum of 10 years, including project-related AI-supported equipment or machinery for manufacturing products

Or the improvement or modernization of:

• Land, streets, utilities, parking lots and landscaping
• Existing facilities

A 504 loan  cannot  be used for:

• Working capital or inventory
• Consolidating, repaying or refinancing debt
• Speculation or investment in rental real estate
• The financing of AI-related working capital, intellectual property, or consulting services soft costs

SBA loans are offered by many banks and lenders so can be very competitive in nature and in pricing  Additionally, the government rules, regulations, and additional paperwork can be considerable. Let Barefoot’s experience guide your way and do the legwork for you.