Small Business Administration loans are the best way for small businesses to enjoy the lowest rates, longer terms and larger amounts.
Expedited SBA Loans.
We've simplified and sped up the process to get you going with an SBA loan in as little as 45 days. With longer terms, lower rates, and larger amounts, we're here to help get your business funded.
Get an SBA Loan in as Little as 45 Days With Our Expedited Process.
Applying will not affect your credit score
Guide to Business Lines of Credit
- What Is an SBA Loan?
- What Are the Typical Terms on an SBA Loan?
- How Do SBA Loans Differ From Traditional Business Loans?
- What Are The Benefits of SBA Loans?
- How Can You Use Your SBA Loan?
- Why choose American Direct Funding?
- What Do You Need to Be Eligible to Apply for a Business Line of Credit?
- Our Loan Application Process
What Is an SBA Loan?
In simple terms, an SBA loan refers to a small business loan partially guaranteed by the government through the Small Business Administration (SBA). The SBA works with a network of approved financial institutions that lend money to small businesses. The SBA agency doesn’t lend the money directly to small business owners, but it sets guidelines for loans by partnering with lending institutions.
SBA loans range from $500 to $5 million dollars, and the loan term ranges from 5 to 25 years. Interest rates start at 3.4% and extend up to 13%, depending on the type of loan you look into. There are four types of SBA loans:
- SBA 7(a) loans
- SBA 504/CDC loans
- SBA microloans
- SBA express loans
Business owners who are looking into these loans must have a legally registered and officially operating for-profit business that operates in the United States, have invested equity into their business, be able to repay the loan, and have exhausted other financial options. Other stipulations and eligibility requirements depend on the loan applied for, the lender, and the financial/credit status of the business owner.
What Are the Typical Terms on an SBA Loan?
Terms can vary and can range from 3.72% to 13%, depending on which SBA loan program you are borrowing through, how much you borrow, the repayment term length, and your business’ qualifications. SBA loans can range in size from $500 to $5 million. Repayment terms vary: 25 years for real estate/equipment and 10 years for working capital.
The 7(a) loan is the SBA’s most popular product and offers a flexible sum of cash for a variety of uses, including daily operations, purchasing new products, and refinancing high-interest loans. Your SBA loan rate depends on the current US Prime Rate.
How Do SBA Loans Differ From Traditional Business Loans?
The big difference between an SBA loan and a conventional loan is that the government partially guarantees an SBA loan. While lenders provide the funds on an SBA loan, the agency guarantees a portion of that amount. If you default on the loan, the SBA pays out the guaranteed amount. This allows for longer payment terms and lower monthly payments. Conventional business loan payment terms typically only last 5 years. An SBA loan can last as long as 25 years.
What Are The Benefits of SBA Loans?
SBA loans are one of the most desirable and sought-after types of business loans. Many small business owners apply for an SBA loan before exploring other similar options. Between lower interest rates and substantially longer repayment terms, SBA loans tend to give you the funding you need, without disrupting your cash flow.
Longer Terms
Build your business the right way, with term lengths ranging from 5-25 years.
Prime Rate+
Access the best SBA rates and terms available through one simple applicaiton.
Express Funding
Get streamlined funding on loan amounts of $350K or less.
How Can You Use Your SBA Loan?
A Small Business Administration-backed loan, or an SBA loan, can help your business to get working capital to accomplish any goal, like expanding, purchasing/refurbishing equipment, taking on new real estate or refinancing an existing mortgage or agreement, and more.
Business Growth
Buy new equipment or inventory, hire new staff, or prepare for seasonal changes.
Business Expenses
Get extra working capital to manage payroll, bridge gaps in cash flow, or pay bills.
Business Opportunities
Expand or open a second location, take on more clients, or capitalize on bulk order discounts.
Why Choose Us?
When you need cash for your growing or struggling business, it needs to be flexible and personalized. We look beyond credit and offer a customized loan that gives you the cash you need when you need it.
Applying will not affect your credit score
How American Direct Funding Works
01
Apply Online
Provide us your basic business information and get approved in as fast as 5 minutes.
02
Review Approved Terms
Review your approved options. After funding options selected, funds are deposited into your business checking account.
03
Make Payments
After payments made on time, you can renew or refinance your business line for more money and lower rates.
Real Success Stories. Real Customers.
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HAVE A QUESTION?
For more information, contact one of our friendly and knowledgeable financing experts today. Give us a call today at:
855-955-4921 OR
714-502-0523
