You’re Looking to Grow Your Business... Where Do You Start?
You had a vision that you made a reality. But when it comes to expanding that vision into something greater, you need funds to make it happen.
However, finding accessible, affordable capital to catapult your small business’s growth can be an arduous process.
Expensive fees, high interest rates, and short repayment terms are unrealistic for most small businesses. Traditional banks have high credit standards for loans that most small businesses cannot meet, even when they boast a reputation of being “small business friendly.”
Discouraged, many small business owners turn to alternative financing options that are manipulative in their marketing and exploitative in nature. These lenders will offer large loan amounts that promise rapid approval and fast cash.
However, these loans can also demand highly unreasonable repayment terms, sometimes as low as just one year, and interest rates well above 20%.
This does not have to be your reality.
This type of financing can quickly cripple your small business when it’s at its zenith of growth potential, converting your original vision into a burdensome liability.
However, finding accessible, affordable capital to catapult your small business’s growth can be an arduous process.
Expensive fees, high interest rates, and short repayment terms are unrealistic for most small businesses. Traditional banks have high credit standards for loans that most small businesses cannot meet, even when they boast a reputation of being “small business friendly.”
Discouraged, many small business owners turn to alternative financing options that are manipulative in their marketing and exploitative in nature. These lenders will offer large loan amounts that promise rapid approval and fast cash.
However, these loans can also demand highly unreasonable repayment terms, sometimes as low as just one year, and interest rates well above 20%.
This does not have to be your reality.
This type of financing can quickly cripple your small business when it’s at its zenith of growth potential, converting your original vision into a burdensome liability.
Is There a Better Option?
The Small Business Administration (SBA) was born from the recognition that small businesses are an integral part of the American economy. The SBA’s mandate is simple – to help Americans start, build, and grow businesses. One flagship pillar of this mission is achieved by providing small business owners with access to affordable capital.
The SBA 7(a) loan program aims to bring funding options to America’s smallest businesses. The SBA does not directly provide funding through loans. Rather, the SBA gives lenders a government-backed guarantee on small business loans. This effectively lowers the risk the lender faces, making them more likely to lend to small businesses.
The SBA also sets interest rate caps for lenders participating in the SBA 7(a) program. While SBA loan interest rates are based on either the WSJ Prime Rate or the SBA Optional Peg Rate, lenders add additional rates on top of that base rate. The SBA limits the amount of interest lenders can add, ensuring these loans continue to be affordable for small businesses.
NEWITY was built on the foundational belief in the importance of equitable and accessible small business capital. And we recognize that, in order to provide the best possible funding options for small business owners, we need to understand the needs of small business owners.
NEWITY is an SBA 7(a) loan facilitator. Our team works alongside small business owners to ensure all their questions are answered and they are connected with the best possible financing option available for their business.
We’ve developed our technology to streamline the application process so entrepreneurs can receive a custom loan option in just 10 minutes, getting their funds 3x faster than the national average.
NEWITY works with Northeast Bank, a trusted SBA 7(a) lender, to help small business owners get the funds they need.
The SBA 7(a) loan program aims to bring funding options to America’s smallest businesses. The SBA does not directly provide funding through loans. Rather, the SBA gives lenders a government-backed guarantee on small business loans. This effectively lowers the risk the lender faces, making them more likely to lend to small businesses.
The SBA also sets interest rate caps for lenders participating in the SBA 7(a) program. While SBA loan interest rates are based on either the WSJ Prime Rate or the SBA Optional Peg Rate, lenders add additional rates on top of that base rate. The SBA limits the amount of interest lenders can add, ensuring these loans continue to be affordable for small businesses.
NEWITY was built on the foundational belief in the importance of equitable and accessible small business capital. And we recognize that, in order to provide the best possible funding options for small business owners, we need to understand the needs of small business owners.
NEWITY is an SBA 7(a) loan facilitator. Our team works alongside small business owners to ensure all their questions are answered and they are connected with the best possible financing option available for their business.
We’ve developed our technology to streamline the application process so entrepreneurs can receive a custom loan option in just 10 minutes, getting their funds 3x faster than the national average.
NEWITY works with Northeast Bank, a trusted SBA 7(a) lender, to help small business owners get the funds they need.
What Are The Typical Loan Terms?
NEWITY facilitates SBA 7(a) loans with terms designed to meet the needs of small business owners seeking accessible and flexible funding. Here’s a breakdown of what borrowers can expect:
- Loan Amounts: Up to $350,000, providing substantial working capital for growth, operations, or refinancing existing debt.
- Interest Rates: Competitive rates ranging from 10.25% to 11.25%, depending on factors like creditworthiness and loan size.
- Repayment Terms: 10-year repayment period, with no prepayment penalties, allowing businesses to manage cash flow effectively while investing in long-term success.
- No Down Payment Required: NEWITY does not require borrowers to put money down, making it easier to access capital without upfront costs.
- No Collateral for Loans Under $50,000: This feature is especially beneficial for younger or service-based businesses that may not have significant assets to pledge.
How Can You Use An SBA 7(a) Loan?
NEWITY facilitates working capital SBA 7(a) loans. These loans can be used to cover everyday expenses or long-term initiatives. These loans are highly flexible, making them well-suited to small businesses looking for effective growth capital.
What Does The Process Look Like?
NEWITY’s application provides a step-by-step flow for confirming your business’s SBA eligibility, providing the required information and supporting documentation, and communicating with our Member Services team to answer any questions you have as you work through the process.
Our team at NEWITY works with you at your speed throughout the approval process. First, our team reviews your financial documents and data. From there, our underwriters assess your qualifications and send the loan information to the funding bank, Northeast Bank, for their review. Finally, your loan moves into closing, where everything is solidified. After your loan is approved, you can receive the funds in as little as 10 days.
Our team at NEWITY works with you at your speed throughout the approval process. First, our team reviews your financial documents and data. From there, our underwriters assess your qualifications and send the loan information to the funding bank, Northeast Bank, for their review. Finally, your loan moves into closing, where everything is solidified. After your loan is approved, you can receive the funds in as little as 10 days.
Compared to traditional short-term capital lenders, SBA 7(a) borrowers who work with NEWITY save thousands. Additionally, NEWITY performs a “soft credit pull” for all applicants, meaning your application will not affect your credit score.
If you’re interested in learning how much you could qualify for, fill out an application and find out in just 10 minutes!
If you’re interested in learning how much you could qualify for, fill out an application and find out in just 10 minutes!
