Existing Small Business Loans
EXPANDING YOUR EXISTING SMALL BUSINESS:
Almost every owner of a small, medium or large company at some time in the life of the
business has either expanded or wanted to expand. Since you already have a profitable
small business, chances are, you will be able to qualify for a SBA loan to assist you. You
may request funds for any reasonable business purpose. Expanding your company normally
will translate into more tax dollars and most important, additional job creation. The SBA is
especially interested in assisting you achieve those goals. Your company must still meet all
of the necessary requirements of a loan such as good credit, historical cash flow, collateral
and eligible uses of proceeds.
A Small Business Owner Can Make An Application To SBA For A Number Of Uses
Such As:
• To Purchase Real Estate*
• To Purchase Machinery And Equipment
• To Purchase Furniture And Fixtures
• To Make Leasehold Improvements On Leased Property
• To Consolidate Debts Or Convert Short Term Loans
• Request Working Capital Or Accounts Payable Reduction
Machinery, Equipment, Furniture & Fixtures Purchase Versus Leasing:
In most cases, with an SBA loan a small business can finance 100% of the equipment cost
(including installation costs) whereas equipment leasing companies normally do not cover
any installation costs associated with the leased equipment. Additionally, leasing companies
will require a down payment and most of the time, a security payment. Most equipment
financing will have a healthy pre-payment penalty associated with an early pay-off.
Very rarely if ever do leasing companies or commercial lenders provide a fully amortized
loan for 10 -15 years. Most conventional financing would only be for five to seven years.
Additionally, SBA loans do not carry a pre-payment penalty on loans that are less than 15
years. Please be aware, that in some cases, the SBA may require additional collateral such
as a lien on other business assets, or even personal col