SBA working capital loan is a loan by the Small Business Administration. It’s a low-interest, low-risk loan for small business. Along with these tempting advantages, there is a great amount of paperwork that can slow down the approval process.
The most popular program by the Small Business Administration is the 7(a) loan that allows small business owners to borrow up to $5 million closing in an average of 120 days. SBA term loan 7(a) working capital is affordable, especially for start-ups. A person that needs $25,000 – $150,000 to launch a business can apply to the SBA and submit a request.
These loans provided by government are low-interest and regulated by government institutions. Unlike the common SBA loans though, they should be closed as little as 45 days. Also, unlike the traditional SBA loans that require 20% – 30% capital injection and collateral, working capital loans require 10% and are secured by your business assets.
These are qualifications for the SBA working capital loan 10 years:
- Credit score of 690 and higher.
- No bankruptcies within three years.
- Minimum 10% equity injection.
- Paid franchise fee prior to the loan.
The SBA also works with the partners. So, you can turn not to the Small Business Administration directly but to its partners. Make sure you don’t deal with cheaters. For this purpose, check out the reviews of the real clients beforehand.