SBA Backed Loans in Houston, TX
Flexible financing for real estate, equipment, business acquisition, inventory, and more
SBA Loans in Houston, TX
SBA 7(a) loans in Houston, TX have a greater application and can help boost working capital. A small business can use an SBA 7(a) loan to cover payroll costs, operating expenses and the launch of new projects. They have lower borrowing limits than SBA 504 loans, but a greater range of applications. SBA 504 loans in Houston, TX only apply to the purchase or lease of property and/or equipment. However, they have higher borrowing limits to help businesses obtain these generally more expensive assets. For both types of loans, the government backing keeps the interest rates low. Specific interest rates vary depending on the type of loan and credit rating of the borrower.
The Small Business Administration does not directly offer SBA 7(a) loans. Instead, they merely act as a co-signer on the loan along with the small business owner. You can obtain an SBA 7(a) loan from a number of financial institutions such as banks, credit unions and other private lenders. With a lower limit on the loan size, you can use the funds acquired from a 7(a) to boost working capital.
A small business can obtain an SBA 504 through a certified development company, or CDC. 504 loans only cover the cost of real estate or equipment, making them ideal when launching a small business. With this loan, the CDC will provide 50 percent of the loan, the SBA will provide 40 percent and your small business will cover the last 10 percent.
The Small Business Administration (SBA) offers loans that can help small businesses begin their endeavor, including a new construction process. The SBA offers many advantages including low-interest rates.
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Can I use an SBA Loan to Launch a Business?