By Kathy Bazan, BRC Consultant
Among small business owners, the 7(a) is very popular because of its low interest rates, the number of items on which you can spend your proceeds, and your ability to work with a local lender of your choice.
For this loan, the SBA does not hand you the loan proceeds directly as they did with EIDL. Instead, the SBA guarantees your loan from your lender.
If you select an SBA preferred lender, then you turn in your loan documents to your contact who sends those documents to an employee of the bank who specializes in SBA loans. If that employee approves your loan (which can take 3-5 weeks), SBA reviews your application and almost always approves quickly.
If you select a lender who is not SBA preferred, your loan needs to be approved by your lender and then sent to the SBA for approval, which could an additional five (5) weeks.
You Can Use Your Loan Proceeds:
- To purchase real estate and/or new or used equipment
- To purchase inventory
- To buy the assets of a strategic competitor
- To hire new employees
- As working capital.
I am happy to help you through the loan process. All my work with you is free and confidential. Call to an appointment with me at (503) 692-0780 or e-mail me at BRCConsultant@TualatinChamber.com. I am happy to meet with you in person, by phone, or by Zoom.
Let me know how I can help your business grow!
Image courtesy of Apple Capital.
Kathy Bazan, Business Recovery Center Consultant
BRCconsultant@tualatinchamber.com