All posts tagged commercial loan

SBA Loans for Startups, Small Business SBA Grant in Texas, Houston

Money Man 4 Business, SBA loans (government loan program for small business) provider in Houston, apply with proper application if you are looking for SBA loans, sba 7a loan and startups

The agency small business administration (SBA) is an autonomous administration of the US government built to bolster the small businesses and economy by providing them SBA startup loans, which would help the economy grow. Other than that biggest function of SBA is to provide counseling aid to the entrepreneur to grow their startup business.

SBA loans are business loans guaranteed by the Small Business Administration. Through the multiple SBA funding, the govt. agency renders SBA loan guaranteeing up to 80% of the loan amount through SBA approved lenders. The three main programs let the borrower to purpose that includes buying real estate, refinancing debts, buying equipment or inventory, working capital through the guaranteed loans.

SBA loans are small business loans guaranteed by the SBA and issued by participating lenders. This guarantees up to 80% of loans as per the agency lending statistics.

In case you are searching to open a new location, refinance an existing loan, or hire employees, SBA loans serves to be a good option. The SBA loan rates and terms usually are more manageable for borrowers than other kind of financing.

SBA also offers substantial educational information that focuses on providing assistance to small businesses during the pandemic by giving them knowledge about SBA loan coronavirus so that the small businesses can sustain themselves during such tiring times.

If you are seeking how to fund the expansion of your business, you should opt for SBA loan. Even if this is not for every kind of business owners, but these are viable option for those who can’t obtain other financing methods to grow their business.

Most importantly, when a qualifying business applies for this loan, he is applying for a commercial loanthat is structured as per the SBA needs with a guaranty. Now, the small business owners and borrowers who have access to other financing with reasonable terms are not eligible for these loans. But, this is good when the owner didn’t actually qualify for traditional bank loan and has a particular use of funds to help grow his business.

Who Qualifies for an SBA Loan?

Securing a small business administration loan is not an easy task. But when it comes to applying for it, small or newer ones can qualify for it. The most crucial element will be the credit score. SBA loans are for business owners with strong borrowing history.

So, be prepared as these loans need lot documentation, attention, energy and time.

One shouldn’t believe any lender who promises to give SBA loan today. It is definitely not a loan that you can apply and receive within few days. These loans are fit for growing your business and refinancing other debt at the lowest available rate.

You can find it hard to qualify for SBA loan in case your company has a limited track record, or mostly when you have poor credit. Actually, the small business administration and your lender stick their neck out on the belief that you are a reliable borrower.

How Do You Apply for SBA Loans?

There are many local and large banks that offer SBA loan. The bank lenders will have extensive loan application, seeing at the financial detail of your business. At the min, the loan application at a traditional bank will take a couple of weeks to process.

For a quicker and easier process, you can apply online to us and connect to top SBA lenders. Some of the essential documents you’ll require here are:

  • Business debt schedule
  • Business plan
  • Personal tax returns
  • Profit and loss statement
  • Balance sheet
  • Bank statements
  • Voided business check
  • Driver’s license

The perfect place to start is the SBA site that include loan application checklist. You can use the below info to gather the documents, including the business records and tax returns.

Here are certain documents you will require prior to applying.

  • Loan application history
  • Business lease
  • Business license or certificate
  • Business tax returns
  • Personal income tax returns
  • Personal financial statement
  • Statement of personal history
  • SBA’s borrower info form

You can ask the SBA district officer for the name of the approved lenders. The agency also did setup the SBA tools to match the potential borrowers with lenders. Banks follow SBA guidelines but use their own under writing criterion to determine loan applications.

Types of SBA Lenders

The intermittent participant lenders are the bank and non-bank lending institutions that deal in SBA loans texas on a sporadic basis. An intermittent lender will send all the paperwork to SBA regarding any particular loan security situation. The agency will do an independent analysis of the plan and let the lender know whether it will furnish the required security to the lender against the loan.

Then there are certified lenders who participate along with SBA on a regular basis, and they have staff that is prepared and certified by the SBA. In this lender will review the paperwork and decide whether the loan seeker is eligible, but the final world will be of the SBA.

Preferred lenders are also SBA-certified lenders who are at the top of the list based on their performance. For SBA loans for startups, the agency designates their best and reliable lending partners and finalizes loans.

How to Choose the Right SBA Loan Program

There are lot many types of SBA loans out there, with 3 programs being the most popular ones. These are:

  • The SBA 7(a) loan program
  • SBA micro loan program
  • The CDC/504 loan program

How do you know which one is right for you?

The SBA loan program will let you to apply that depend on goal of your business, on age, and on the size.

The most popular program is the SBA 7(a) loan that work best for most business with general financial requirements such as renovating a location, refinancing old debt, expanding working capital. Here are the details of an SBA 7(a) loan.

  • For the purchase of major fixed assets
  • Repayment terms of 10 or 20 years
  • For general business financing requirement
  • Repayment terms of up to 10 years or 25 years

Further, another popular SBA loan program is the SBA micro loan program. The SBA offers micro loans to new and small business seeking for loans. While these loans are small, they are not actually said as shirt term as term lengths get extended over a long time period. Some details regarding the SBA micro loans are:

  • Up to $50K in loan amount
  • Repayment terms up to 6 years
  • For expanding or starting a new or small business

In case you fee unsure about which SBA loan program to opt, you can talk to our experts and get help and options to decide which program is right for you and also know whether you will qualify for it or not.

If you are not there yet, we will work with you to graduate your business up to the SBA loan, for the most cost effective and long term business loan option.

The Types of SBA Loans

#1. All purpose 7(a) loan program

The most popular SBA loan program is the 7(a) loan. This is designed to render funds for a broader list of businesses. It targets small companies and identifies whether a company is small by its number of employees or annual revenues.

The max loan amount available under the 7(a) program is $5 million. This loan is a general purpose loan and the fund is utilized for any business requirements. These include:

  • Refinancing existing obligations of your business
  • Acquiring another company
  • Buying land and a building
  • Funding working capital
  • Starting a new business

Most 7(a) loans are used to buy assets like equipment and real estate because of favorable conditions that let one to repay the loan over the useful life. The long repayment period keeps payment low, meaning more capital to stay in your business.

Now, SBA loan does have some restrictions on how these are used. Funds guaranteed by the SBA cannot be used to fund any investment, or any passive business activities such as buying a building that will be leased to another business. These loans cannot be used to reimburse a business owner for money priory invested, or repay money owned to the govt. like the taxes.

#2. SBA Express Loans

SBA Express loan is another option under the 7(a) program. It renders the lender the flexibility to offer a revolving loan structure for a particular time. What this means you can draw funds for some amount of time paying only interest and treating the fund like line-of-credit, prior to repaying the loan through principal or monthly payment of interest. The max term on this loan is 7 years.

#3. 504 Real Estate and Equipment Loan

In case you require a loan to buy machinery or real estate, a 504 loan could help. This loan works differently from 7(a) loans. Here, the applicant has to give equity contribution as low as 10% of the asset’s buying price.

Most of these loans are structured and will work in tandem with the lender to give 40% of the project funding. Also, a conventional lender like credit union or bank provides at least 50% of the financing. The process here is more complex than other forms of financing as there are two participating lenders to collaborate.

Interest rate for 504 loans is fixed for 20 years which is 10 years for equipment loan and the asset you buy will serve as collateral for the loan. Here the personal guarantee is needed.

The Bottom Line

Prior to applying for any kind of business loan, it is wise to assess your business financial health and requirements. The small business administration suggests you to consider the strength of your industry, and know how to use and repay the loan.

So, it is essential to develop a business plan to answer the questions, review a substantial, and have well though plan prior to approving the loan to expand or launch a business.

A traditional business loan will usually be fast to get and have low fees. Here, SBA loans offer crucial benefits including being able to get a loan at every stage of the business growth.

Commercial Finance and Loan Interest rates Texas, Houston

Money Man 4 Business, best finance company near me in Houston, provides commercial lending services at very low interest rates. Find loan companies to get real estate loans.

Are you in the world of business? If yes, then you might be acquainted with worlds like “commercial finance” and might also have uttered once or twice in your lifetime or may be more times. However, even it is a very common jargon within the industry; it can still conjure up uncertainty for some business owners who don’t know the options that come to them.

Commercial finance company helps businesses to grow and expand so that they can achieve their goals which are both short-term as well as long-term. The type of commercial finance you will apply will also depend upon the type of your investment. For example, if you are exploring a second office or a commercial property for your business or looking to invest in your new staff and expand the product line and build a team for it, this loan is the best fit.

At first, giving a simple definition to this; a “commercial finance is a term given to large number of business finance item products that includes both long- and short-term solutions, offered by the providers who are external.

Why we need commercial finance support?

It is only possible for businesses to reach a point where growth is imminent through commercial financingSometimes there seems to be obstacle in the way of attaining necessary growth like funding option.

Now, these finances make sure that businesses no matter of the size can thrive and hit target instead of missing them. This is because they have to wait to generate enough case to re-invest for them. This is importantly a way to render working amount for businesses.

In this modernistic time, better access to commercial finance showed the way for small and medium size enterprises to prosper. At present, the finance landscape have come to cover more areas, where as once there were just banks, and alternative finance providers who have more business option than ever. It can be said that the new alternatives gave fast access to those who’d otherwise have to go lacking it.

This means, you can find and avail better options, whether it means you’re a customer seeking to shop around within a particular marketplace or a business owner wanting to achieve growth

How does a commercial loan works?

Commercial real estate lending loans usually require collateral which is also known as a backup plan if your business defaults on your loan or declared bankrupt. A lender will usually require a property or machinery or any large asset that your business uses as security. But don’t be mistaken that all properties will be considered as equal value. Obtaining a loan against commercial property or your office or company warehouse will be considered less risky in the lender’s eyes. The commercial loan lending rates will also differ from that of the residential loan.

Commercial Finance: The Different Options Available

Prior to coming access to stand at front of various commercial financing companies in the marketplace, you can set some down.

What types of business loans you can qualify?

At present, you can find more than just one kind of business loan. As such, it is crucial to understand the type of loan you are seeking prior to opting a business financing company that doesn’t render solution as per your requirement.

Therefore, prior to getting to list out every financing company, you can find some quick overview of the entire type of business loans present in marketplace.

  1. SBA Loans

SBA loans are known as the gold standard of small business financing. These are loans that are issued by conventional banks, and guaranteed by Small Business Administration. To get a sense of who offers these programs, you can check out the list of some active SBA lenders.

Now, the most popular type of small business administration loan, the 7(a) loan, is large, low rate and long term loans. Loans from the 7(a) loan program are very general financing products, so they’re best for any prime business requirements. But, these are some of the harder loan to qualify; only for borrowers with stellar personal credit, strong revenues and established businesses to qualify.

  1. Term Loans

Conventional termed loans are usually the business loans you’d know. These are lump sum loans that are repaid over certain time duration with regular payment. The long term loans are offered by conventional banks that are very much hard to qualify for.

But, non-bank, and alternative commercial finance agencies do offer the medium term loans. These are the conventional bank loans but somewhat small with slightly high rates and short termed. These loans are easy to qualify rather than SBA loans and bank loans, and are perfect for huge business expenses and investments.

  1. Short-Term Loans

Short term loans are like medium term counterpart which is short lived. Non-banks, and online commercial finance companies offer lump sum loans over short terms with high rates and small amount. As such, you will avail high interest rate with a short term loan product as the commercial financing companies do offer fast financing and more accessibility that you can find at other SBA lenders. They charge high interest rate and riskier borrower because of it.

Now, short term loans can give rise to capitals you’ll require to accomplish short term projects, meet the working capitals and handle any one-off expenses.

  1. Business Lines of Credit

business line of credit is a financing solution that renders you access to a pool of funds for your business to draw from whenever you require. This is similar to the business credit card where you’ll have to pay interest on the funds you draw and once you pay them back, your line of credit gets filled to your original capital.

Here, the commercial finance companies do offer small as well as large line of credit along with multiple accessibility. These loans are taken to be the perfect financing products for small business financing owners in part as these are very much flexible. The business line of credit works specifically well for owners who are in need to have as a safety net in their pocket, smooth out cash flow or cover regular expenses.

  1. Equipment Financing

This help one to afford the pricey equipment needed for the business; however it cannot pay for upfront. These commercial finance companies that render financing advance you up to 100% of the value of the equipment that you will pay back over a set amount of time with interest. After you have completely paid up, you will own the equipment.

Equipment financing is a good option for those businesses that require both used and new office supplies, vehicles, machinery and so forth.

       6. Commercial real estate loans or property loan

This is a good option if you are looking for any real estate financing to purchase property to upgrade your business. The commercial real estate loans can help you grow and expand your business; a new space means you will have more room for bigger and better teams, facilities to keep more stock and purchase technology. In short, you will be able to purchase items that will enhance your business. The structure of payback is similar to a home loan; you will have the option to choose from a fixed or a variable interest rate, interest + principal repayment, or interest-only repayment.

How Commercial Finance Companies Difference From Banks

The two kinds of commercial finance companies viz: banks and alternative lenders differ from one another in some crucial ways. Here are some of the most important differences to catch up.


There are banks that only offer term loans and line of credit, as such alternative lenders are more flexible with these kinds of financing type they offer. Not only do the commercial finance companies offer line or credit and term loans, rather also working capital loans, merchant cash advances, invoice financing, short term loans and so forth.


Banks are notorious and tight with their credits. As such, alternative lenders open their options to a huge range of small business owners. So, previously unbankable business owners do qualify for the alternative commercial finance companies.


Bank loans do take a long time to apply to, and long time to fund, in case you are approved. Overall, this method of applying can take few months.

On the other hand, alternative commercial finance companies work faster than banks. Some of the longer lenders take nearby 10 days to fund a loan, while some can approve a loan on the same day you apply.

How do they do this?

This is because of the accessibility and speed aspect that goes hand-in-hand with the type of lenders. Many companies do not require as much paperwork on the borrower’s end as SBA lenders and banks do. This means, you spend less time compiling a loan application, and the lender spends less time to review the paper work.

Further, the commercial finance companies also make use on online technologies to underwrite loans more efficiently making it a faster process.


The accessibility and speed difference between commercial finance companies and banks lends itself to a difference in affordability. This is because it works on such a faster time frame and wants to work with less qualified borrowers. As such, they charge high interest rates for commercial loan that what you would find at a bank.

Commercial Finance Companies: How to Choose

After you have found a list of top commercial finance companies, there is a question here as to how to choose them.

This can start with what you qualify for. For sure, you would not like to work with term loan lender in case your credit score was high. Rather you’d consider short term loan or a short term line of credit.

After you have the knowledge about the qualifications and criterion, you can come to know the list of commercial finance companies that will be realistic option for your business. Further, you’d be working with the lenders that will offer the best and meet your requirement within a much low capital.

Are commercial loans in Texas that you should be considering if you are looking to grow your business or increase your cash flow. There is no one right-fit answer for this question; it will depend upon the business goals and the unique needs you will have in order to expand your business. It will be prudent to engage a commercial broker who will have complete knowledge and expertise that will help you as a business owner understand the financing options you have at your disposal.