SBA Loans
WHAT ARE SBA LOANS?
A Small Business Administration (SBA) loan, facilitated by Desi Lending, is a secured and government-backed financing option to support small businesses in distinct industries. These loans offer competitive interest rates and flexible terms, making them ideal for business owners/entrepreneurs looking to grow or stabilize their operations. At Desi Lending, we offer SBA Loans in New Jersey to boost the growth of your small business. We are among the top SBA lenders in NJ, providing personalized financial support to help you attain your business objectives and drive success.
Providing SBA Loans in New Jersey
Having knowledge of different types of SBA Loans gives you the ability to make informed decisions about financing your business. Every SBA loan program entails unique factors, competitive interest rates and flexible terms tailored to different business requirements. These loans are backed by SBA which gives the assurance to the borrowers to achieve their business goals without any insecurity.
Discover which SBA loan program aligns with your financial needs and business objectives
| LOAN TYPE | LOAN AMOUNT | INTEREST RATES | REPAYMENT TERM |
|---|---|---|---|
| 7(a) Program | Up to $5 million | Starting from 6% | 10 – 25 years |
| CDC/504 Program | Up to $5.5 million | Starting from 6% | 10 – 25 years |
| Express loan | Up to $200,000 | Starting from 6% | 1 – 7 years |
SBA Loans Types
SBA 7(a) Loan Program
SBA 7(a) Loan program is one of the most versatile financing option. With this program, several businesses have taken advantages of funding for
- Working Capital: To cover their daily operational costs including salaries, inventories and rents.
- Acquiring Real Estate: To purchase commercial property or to refinance existing commercial mortgages.
- Debt Refinancing: To consolidate exiting debts into a single business loan with lower interest and better terms.
- Purchase of Equipment: To buy machinery, tools or essential equipment imperative for productive business operations.
- Business Expansion: To partake in initiatives for business growth such as staff hiring, growing product lines or entering new markets.
In contrast to the conventional loans, SBA 7(a) loans have longer repayment terms, lower down payments and competitive interest rates. These pros of the program makes it a desirable choice for small businesses looking for flexible financing options.
SBA CDC/504 Loan Program
SBA 504 is ideal for businesses that prioritize investing in fixed assets, to ameliorate existing assets or buy real estate property. These loans can be acquired for up to $5.5 million. In this loan program, 40% of the total loan amount is provided by SBA-approved certified development companies (CDCs), half of the total loan amount is provided by a bank.
The SBA 504 loan program offers long-term, fixed-rate financing particularly for major fixed assets, such as:
- Real Estate: To Purchase lands, buildings or to make improvements in existing spaces.
- Equipment: To acquire heavy machinery or other expensive equipment mandatory for business operations.
SBA Express Loans
An SBA Express Loan is a fast and flexible funding option for small businesses with up to $200,000. Offered by SBA-approved lenders, these loans speed up the borrowing procedure. The SBA provides a portion of the loan, which reduces the risk for lenders and allows for quicker approval and funding.
Express Loans can be used for a variety of business purposes, including:
Working Capital: To cover everyday expenses and manage cash flow.
Equipment Purchase: To obtain necessary machinery, tools, or equipment.
Inventory Acquisition: To buy inventory essential for business operations.
The SBA Express Loan program is tailored to support businesses by providing timely access to funds, helping them meet their financial needs and grow efficiently.
How to Apply for an SBA Loan in New Jersey?
Applying for an SBA loan Involves several steps but we are here to make it as easy as Breeze
Gather Financial Documents
Collect all the required financials such as income statements, balance sheets, and tax returns.
Fill out SBA Loan Application
Fill out the SBA loan application form. Provide correct information about your business and financial health.
Submit Application
Choose an approved lender like Desi Lending, who partakes in the SBA loan program and submit your application.
Review and Approval
We will review your application, assess your eligibility, and make a decision on whether to approve the loan.
Loan Closing
If approved, review and sign the loan agreement. We will then disburse the funds according to the terms of the agreement.
Loan Repayment
Begin making repayments according to the agreed schedule, ensuring timely payments to maintain good standing.
We are Trusted and Loved by Our Customers
Our customers trust our lending firm for our steadfast services to providing financial solutions, exceptional service and delivering on promises with transparency and honesty.
Frequently Asked Questions
The prominent SBA loan programs are SBA 7(a) Loan Program, SBA 504 Loan Program, and SBA Microloan Program.
Eligibility typically requires a solid business plan, a good credit background and; the business has to conduct its operations in the United States and must also meet the SBA size standards.
The time it takes to get approval will range from a few weeks to several months depending on the loan and the complexity of the application.
SBA loans are flexible in terms of use and can be used for operational purposes, acquisition of equipment/properties, and to refinance existing debts.
The interest rate on SBA loans in New Jersey depends on the type of loan as well as the lending institution, but the rates are relatively low and bearable as compared to those of conventional loans.