In continuation to the post on Monday.
If a business falls into any of the above categories, seeking assistance from the Small Business Administration would be a smart choice to investigate. The SBA will guarantee that 80 percent of a loans value, up to $100,000, will be paid back to the lending institution if the loan goes into default. If the loan issued is over $100,000, then the SBA will guarantee 75 percent of the loan to the lender. The maximum loan value guarantee that can be obtained is $750,000. The program that the SBA offers can help women who would otherwise not qualify for a loan.
The loans programs offered through the SBA are not always the most inexpensive loans out on the market. At times, the interest rates are at or over other commercial loan interest rates that are being offered by lenders. Business must pay a guarantee fee that is usually between 3 percent and 3.875 percent that is calculated on the portion of the loan that will be guaranteed through the SBA. The SBA loans for women offer longer amortization rates when you compare them to other commercial loans offered by banks. Those seeking fixed asset loans should expect to see financing that is offered for up to 10 years. Working capital loans will be financed for up to 7 years. Those seeking loans for construction or real estate can expect financing for up to 25 years.
Please check back on Friday for the conclusion to this post.
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