SBA Loan to buy Business Equipment - Financing | Get Funded Program скачать в хорошем качестве

SBA Loan to buy Business Equipment - Financing | Get Funded Program

https://getfundedprogram.com/ SBA Loan to buy business Equipment, SBA loan equipment financing Today we are going to talk about the 2 main SBA loan programs relevant to equipment financing: SBA 7a loans and SBA 504 loans. A wide range of both new and used equipment can be financed. Examples of SBA 7a loan eligible equipment include rolling stock, construction equipment, production lines, IT-related, restaurant equipment, office equipment and office furniture. Examples of SBA 504 loan eligible assets, other than real estate, include equipment with a useful life over 10 years, such as manufacturing equipment, precision equipment, printing equipment, loaders and forklifts, construction equipment, large off-road trucks, commercial kitchen and commercial laundry equipment, and equipment involved in renewable energy or fuels. Equipment appraisals may be required, mainly for used equipment purchases. Competitive Interest Rates SBA loan programs are priced between conventional bank interest rates and nonbank leasing rates. Recent 7(a) rates have ranged from 6% to 8%, while 504 loan rates have ranged from 4% to 5%. Most SBA 7a loans are variable rate, priced as a spread to Prime. The maximum spread is 2.75% for loans over $50,000. Lenders who keep the loans on balance sheet, mainly the largest banks, will offer fixed rate 7a loans to borrowers with strong credit. SBA 504 loans are primarily fixed rate, although the senior, conventional loan can reset after a fixed period, typically 5 years. So a borrower can have relative cash flow certainty for up to 25 years for long-lived assets. The CDC/SBA component of the 504 loan, including fees, recently priced at 4.75-5.0%. Senior, conventional loan rates range from 4.75% to 7% depending on the credit of the borrower, the equipment type and the length of the initial fixed rate period. Long-Term Maturities Both the 7a and 504 loan programs allow for longer maturities than conventional loans and leases. 7a loans collateralized by equipment can go out to 10 years, while 504 equipment loans can go as far out as 25 years. Both programs limit the loan maturity to the shorter of the maximum maturity and the equipment’s useful life. Real estate in the collateral pool will extend the allowable maturity. SBA loans are straight amortization loans with no balloon payments. At the end of the loan, the borrower owns the equipment free and clear without any residual or refinancing risk. Low Equity Requirements SBA lenders will require the borrower to provide “equity” in the equipment acquisition but the requirements are relatively low. The equity component will range from 10-20% depending on the strength of the borrower and the equipment being financed. This amount of leverage in an SBA structure is higher than most conventional equipment finance structures. If you are looking for an SBA loan to purchase new equipment, click the link in the description below #equipmentfinancing #sbaloan #getfundedprogram Thanks for watching the video [Insert Video Title Here]