Small businesses can reap many benefits from an SBA loan. In a 2011 article for the Journal of Accountancy, Ron Box outlined some of the advantages of obtaining loans from this organization.
These include obtaining loans despite a lack of experience, which can normally be a deciding factor for commercial loans, Box wrote. There are also microloans that could be more appropriate for the size of the business for as long as six years, with an interest rate as low as 8 percent. If the business has a net worth lower than $15 million, it might qualify for this small loan, as well as the more generalized 7(a) or fixed-rate 504 loan programs.
"Businesses can seek out the loan that fits their needs for machinery, construction costs or other expenses."
Because of these different available options, businesses can seek out the loan that fits their needs for machinery, construction costs or other expenses. Not all businesses qualify for SBA loans, though, which makes researching the options and working with an appropriate bank just as important. During this time, owners can get their materials in order for a proper application.
Finally, the SBA offers resources for owners who need the extra help to get their vision off of the ground. All Business contributor Miguel Salcido mentioned the resources specifically intended to help female entrepreneurs, for example. He also advised owners to build a positive relationship with the lender, no matter who they are, to ensure their application goes well.
Growth Capital can help Ohio companies develop their small business idea with the help of proper capital. Learn more about how specialized loans can benefit your business by contacting us today.