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SBA LOANS CAN HELP FINANCE Small Business Dreams BY JENNIFER TYLER, ASSISTANT VICE PRESIDENT, COMMERCIAL LOANS, FREDERICK COUNTY BANK
When it’s time to grow and expand your business, you need a loan that works with you and for you. As one of Frederick’s leading community banks, Frederick County Bank (FCB) is dedicated to helping local businesses, individuals and families manage, save and enjoy their money. In order to best serve the community, FCB offers a wide range of business and personal financial products. For Frederick small business owners who dream of growing their business, Frederick County Bank and the Small Business Administration (SBA) are here to help.
Use an SBA Loan to: • Purchase equipment or inventory. • Purchase owner-occupied commercial real estate. • Finance construction or renovation. • Obtain short- and long-term working capital. • Refinance debt.
The SBA was created to assist and protect the interests of small business owners throughout the country. Their services range from education and training to government contracting and advocacy. Perhaps their most recognizable product is the SBA loan. SBA loans are partially backed by the government, meaning lenders, such as Frederick County Bank, can provide them with easier qualifications, extended terms, and lower down payments than a conventional business loan. While the Small Business Administration does not lend money directly to small businesses, it sets guidelines for its partnering lenders and provides a partial guarantee that it will repay a portion of the loan if the business cannot make its loan payments. This reduces the risk for lenders and makes it easier for small businesses to obtain financing.
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Who Can Use an SBA Loan? Finding traditional financing for your business can be a personal and complicated process. One of the major benefits of SBA loans is the basic qualifications, which make the lending process easy to understand. If you run a small, for-profit business in Frederick that does business in the United States and has invested equity, you may qualify for an SBA loan through Frederick County Bank.
How Can Businesses Use an SBA Loan?
Find the Right SBA Loan for Your Business
SBA loans offer flexible loan terms and the ability to use the financing for a wide range of business expenses, making it a beneficial option for many small businesses. Depending on the program, qualified business owners can apply for up to $5.5 million in financing to grow and expand their already established business.
Since no two businesses are the same, the Small Business Administration collaborates with commercial lenders, such as Frederick County Bank, to offer multiple SBA loan programs for small businesses depending on their financial needs.
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Benefits to Borrowers: • Ability to secure financing on terms and conditions not otherwise available. • Capitalize fees into loan. • Extended term permanent financing. • Maximize cash flow. • Minimum down payment of 10 percent.