The Cooperative Bank of Cape Cod partners with the U.S. Small Business Administration, a federal government agency, to offer financing assistance to small business owners. Many programs are available to aid in the acquisition of real estate, machinery, equipment, and other such assets. SBA loans are partially guaranteed by the government.
How does an SBA loan work?
Small Business Administration (SBA) loans1 are government-backed financing solutions, providing up to $5 million. Designed to foster small business growth and expansion, they feature government guarantees that cap interest rates and limit associated fees. While often ideal for business purchases including real estate, these loans are also used for working capital, debt refinancing, or acquiring supplies. Not all small businesses qualify for conventional loans, if your loan doesn’t meet traditional financing requirements, an SBA loan may be right for you.
7(a) Loans
The SBA 7(a) loan program offers loans up to $5 million, with repayment terms as long as 10 years (or even 25 years if it’s for real estate!).
These government-backed loans are a fantastic fit for for-profit businesses looking for funds to expand, renovate, build new facilities, buy land, buildings, or equipment. They’re also great for working capital, inventory, buying out a partner, and many other general business needs.
504 Loans
The SBA 504 loan program offers long-term, fixed-rate financing up to $5 million (with terms up to 25 years!). It’s designed to help small businesses purchase big things like real estate and essential equipment.
To qualify, your business should generally be for-profit, meet SBA’s size guidelines, and show that you can create or keep jobs. Also, your business typically needs a tangible net worth under $15 million and an average net income under $5 million (after federal taxes) for the two years before applying.
SBAExpress
SBA Express loans can go up to $500,000, with repayment terms stretching up to 10 years.
These term loans or revolving lines of credit are perfect for for-profit businesses needing working capital, looking to expand, buy new equipment, make tenant improvements, buy out a partner, or handle other everyday business needs.
Have some questions before you apply? Our small business team is here to assist. Give us a call at 508.568.3400
Meet Our Business Banking Team
For more information visit www.sba.gov
1These refer to government-guaranteed loans offered through the Small Business Administration. Credit is subject to approval. Other restrictions may apply.
Subject to credit approval and program guidelines. SBA loans are subject to SBA eligibility guidelines. Certain restrictions apply to refinancing options and are subject to program terms. Refinances of existing SBA loans are excluded.
