The Small Business Administration (SBA) is a government agency dedicated to helping small businesses and entrepreneurs through SBA-backed loans and a variety of programs. Small companies are the lifeblood of the US economy, and the SBA and other agencies recognize this fact.
If you own a small business, you are constantly faced with choices that affect the future of that business. You have the option of growing your company, staying small and lean, or selling. You have many opportunities, but you also face some challenges — especially when it’s time to apply for financing. Many large financial institutions hesitate when offering funding and loans to small businesses because they usually have less capital to use as collateral.
If you’re starting up or growing a smaller business, Centric Bank can help. Centric Bank offers SBA-backed loans to small businesses in every industry in Pennsylvania. In the fiscal year ending in June 2016, Centric Bank led SBA’s Eastern Pennsylvania district in SBA dollar loan volume, and ranked eighth in the number of SBA loans.
Choosing a Small Business Loan
If you own a small, for-profit business, you may have a few options for financing your start-up and seeking funding for overhead, furniture, machinery, inventory, expansion, acquisitions and other needed expenses. These options may include conventional business loans, lines, or letters of credit. However, if you do not qualify for conventional financing, an SBA loan may be a better avenue for your business. If you would like to learn more about SBA-backed loans or review SBA resources for small businesses, the SBA website offers detailed information.
Types of SBA Loans
Financial institutions and banks in Pennsylvania offer loans backed by the SBA. Participating institutions, such as Centric Bank, can help you apply for these loans if you are eligible. To qualify, you must operate a small, for-profit business and must meet other requirements.
If you secure an SBA loan, you will enjoy many benefits, including:
• Flexible terms
• The ability to finance soft costs
• Longer, fixed maturity terms
• Potentially lower monthly payments
• No balloon payments
• No prepayment for loans under 15 years
The terms and rates you enjoy on your SBA loan will depend on the specifics of your business’s financial situation, as well as the type of SBA loan you apply for.
You may be interested in two main types of SBA loans:
- Real Estate & Equipment Loans: CDC/504. You may be able to secure up to 90% of your total project costs using this loan, which is designed for larger projects. If you’re interested in building or buying property or investing in large machinery, this may be the right loan for you.
- General Small Business Loans: 7(a). These SBA start up loans are great if you need money to open your doors or buy assets. You can even use the loan to refinance a current debt. The requirements for equity are flexible and you may be able to finance every cost of your project with this loan.
To further discuss which SBA or business loan might be right for your organization, contact one of our commercial lenders at 717.657.7727 or toll free at 888.274.2033. As a community bank, our team has helped thousands of businesses succeed. We offer more than financing and loans for companies. As part of the Pennsylvania community, we’re also the patrons and customers of many of the businesses that come to us for support.
Centric Bank: Your Partner in Business Success
Centric Bank is small business, just like you, and we know what it takes to succeed. Many of our business clients return to our professional and helpful bankers year after year for their financing needs because they know they can trust us for practical, honest and convenient assistance.
Whether you’re looking forward to the launch of your company or have served customers for years, consider SBA loans as a flexible option when you need financing. SBA loans can help if you want to start a new business, refinance debt, pay for working capital, invest in equipment or other needs, expand, buy business property or take on any other project.
Centric Bank’s SBA specialists can walk you through your financing options and explain eligibility. We can help you compare options, so you find the right fit. We can also guide you through the application process. When you have questions, Centric Bank has answers.
Centric Bank is committed to helping business owners realize their dreams. Small companies revitalize Pennsylvania’s economy and support the wealth of our nation, and we express our gratitude by providing professional and robust business services for our clients. For SBA’s fiscal year ending September 30, 2016, Centric Bank loaned more SBA secured money to small companies than any other financial institution in the SBA’s Eastern Division. We look forward to offering even more support to small companies in the future.
If you’re ready to realize your business success and would like to discuss financing options, contact the business specialists at Centric Bank. You can reach us online or by calling 717.657.7727 or toll-free at 888.274.2033.