What is the purpose of the Small Business Administration (SBA)?
Congress created the Small Business Administration in 1953 to help America’s entrepreneurs form successful small businesses. The SBA enables its lending partners to provide financing to small businesses on reasonable terms by guaranteeing major portions of loans made to small businesses.
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Sterling Saving Bank is part of the Preferred Lending Program with SBA. What does that mean?
As an SBA Preferred Lender, the SBA has authorized SSB to make lending decisions on their behalf. Loan proposals do not need to go to the SBA for approval, which means the process moves more quickly.
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How does the SBA program work?
A lender provides the actual loan to the borrower. The SBA guarantees a portion of the loan, acting like a co-signer. This helps lenders be more comfortable with a loan that they might otherwise not approve, such as a loan for a start-up, or a borrower that has less collateral than a bank requires.
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Why should I consider an SBA Loan?
- Up to 90% Loan to Collateral Value
- Longer Repayment Periods—up to 25 Year Terms for Real Estate
- No Prepayment Penalties for Loans up to 15 Year Terms
- No Balloon Payments
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What are some potential uses of an SBA loan?
You can finance:
- Working Capital
- Inventory Purchase
- Machinery & Equipment
- Furniture & Fixtures
- Commercial Real Estate
- Purchase
- Improvements
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What types of loans are available through the SBA?
The SBA offers many types of loans catering to your business needs, including the 7 (a) Regular Business Loan and the 504 Development Loans.
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Can I get a line of credit?
Lines of credit are not available through the SBA.
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How do I apply for an SBA Loan?
Contact Sterling’s local
SBA Business Development Office in your area.
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Why should I go to Sterling Savings Bank for an SBA Loan?
The SBA process does have more requirements and paperwork than a standard bank loan. Sterling has SBA Business Development Officers that focus only on SBA lending. Our Business Development Officers are knowledgeable and will help you understand what to expect through the process and assist you in determining what the best loan option is for your business.
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