Many entrepreneurs in Ohio run small businesses. In some cases, an owner might realize that he or she is going to need more capital to grow a business. While there are a variety of financial options that can work for this purpose, one of the most coveted is the Small Business Association loan.
The SBA is a department of the federal government. It encourages business development throughout the country and provides entrepreneurs with a variety of tools that can be used to begin and grow a business. One of these tools is the SBA loan, which business owners can use for any legitimate business purpose. These loans are partially guaranteed by the government and offer attractive interest rates.
It should be noted, however, that these loans are not suitable for startups or “hobby” businesses. In general, a company will need to be in operation for at least two years, doing at least $100,000 a year in business and the owner will need a decent credit score to qualify.
Business owners and partners who believe they may qualify for an SBA loan will need to gather essential documents and spreadsheets to begin the application process. Approvals generally take about three weeks, and repayment terms may run between 5 and 25 years.
Business owners who are concerned about obtaining financing, including loans, might benefit from speaking with an experienced attorney. The lawyer could review the client’s current situation and make recommendations regarding additional financing or other ways of structuring the business to reduce expenses and tax obligations. In addition, the attorney may also be able to review loan documents to ensure that the client understands the terms of a loan and its repayment.