What is an SBA Loan best for?

SBA loans are best suited for small businesses hoping to use this funding for multiple business-related purposes:

1. SBA loans are specially designed for small businesses.

SBA loans and terms have been built with small businesses in mind. The guidelines of these loans are designed to help small businesses gain their footing, grow, and thrive. Therefore, the terms have been refined to best help small to medium sized businesses.

2. You can use the loan funds for most small business requirements.

The SBA keeps the usage requirements for these loans open so small businesses, which have operated for at least a few years, can direct them as needed. Examples include:

• Long- and short-term working capital 
• Revolving funds based on the value of existing inventory and receivables 
• The purchase of equipment, machinery, furniture, fixtures, supplies, or materials 
• The purchase of real estate, including land and buildings 
• The construction a new building or renovation an existing building 
• Establishing a new business or assisting in the acquisition, operation or expansion of an existing business 
• Refinancing existing business debt, under certain conditions