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Financing your Business Growth? Think “SBA”!

August 01, 2016

Maitland Rutledge

Senior Vice President 

SBA Lending Manager

Running a small business requires courage, toughness, creative thinking, compassion, and effective selling. With all this to contend with, how does financing your company’s growth play into these daily tasks? Look no further than the U. S. Small Business Administration!

Cash is the Lifeblood of Business

The #1 operational concern for small business owners today is maximizing cash flow. Cash is the lifeblood of small businesses and must be held onto as vigilantly as a drowning man clings to a life preserver. As you seek to attract and keep customers, financing the growth of that revenue is critical and SBA financing may be a better choice than a traditional bank loan.

The U.S. Small Business Administration began in 1953 to aid, counsel and protect the interests of small business. Today, its financing programs have expanded greatly through partnerships with banks. Banks provide the funding and the SBA provides a guarantee. 

  • The 7(a) loan program is the most used providing almost $24B in guaranteed loans nationwide for the year ending 9/30/15. 
  • The loan limit for a 7(a) loan is generally $5 million in total loans per borrower. 
  • The SBA guarantees range from 50-75%.

Choose an SBA Preferred Lender

The most seasoned SBA lenders like The Bank of San Antonio, are SBA Preferred Lenders, the highest level of delegated authority granted to process, approve, close, service and liquidate SBA loans. SBA Preferred Lenders can therefore process, approve and close SBA loans as quickly as a traditional bank loan, but with significantly better terms and conditions.

Retaining cash & maximizing cash flow? You bet!

With an SBA loan, you could have a lower downpayment and longer term amortization. The SBA guarantees 7(a) term loans up to 25 years for purposes ranging from working capital to the purchase or refinance of fixed assets and eligible owner-occupied commercial property.

There are additional SBA guarantee programs for revolving lines of credit which can also assist your business in smoothing out uneven cash flow cycles. Revolving lines of credit to $350,000. require less monitoring while loans in excess of $350,000. require more monitoring using a monthly borrowing base certificate or annually provided projections.

Still uncertain if an SBA structured loan is a fit for your business? Feel free to call me at 210-807-5547 to see how we may be able to help you achieve all the growth while minimizing your cash outlays!

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