Our goal at Benchmark Commercial Lending is to provide access to commercial loans and leasing products for small businesses.
SBA loan programs are the different setups through which the SBA facilitates small business lending. Though all SBA loan programs will offer affordable business funding, different SBA loan programs offer a variety of funding possibilities based on your business’s history, the amount of capital you need, and how you plan to use the funds.
Here’s a quick look into all of the available SBA loan programs:
In this guide, we look at the three primary SBA loan programs, plus 10 other sub-programs, and how they work to help you determine which one is the best fit for your business.
Though how an SBA loan works will vary from loan program to loan program, a hallmark of SBA loans is that they offer low-rate, long-term funding. SBA loans have some of the lowest interest rates that a business owner can find. And long repayment terms translate to manageable monthly payments. Plus, because most SBA loan programs will mean lessened risk for lenders in some form or fashion, SBA lenders lend more to small businesses. Together, participating lenders issued over $113 billion in SBA loans in the SBA’s fiscal 2017 year.
SBA loan programs have some drawbacks as well. Qualifying for an SBA loan is tough—these loans go only to the most creditworthy of borrowers. Plus, getting an SBA loan takes patience. The average loan processing time is 4 to 6 weeks, even with a specialist like Bmclending helping you with your application. These loan programs are best for borrowers who don’t have an immediate need for funds (if you need capital right away, try other quick business loan options).
It’s also important to note that, while we go into the most popular SBA loan programs, there are many programs that the SBA offers for different entrepreneurs. They help facilitate SBA loans for women or Community Advantage Loans for specific locales.