How SBA 7(a) loans can help you secure more capital for less.
You’ve likely heard SBA loans provide favorable terms compared to other loan options. What are those SBA terms? How can they help you get approved for a larger loan? Here are the top 5 benefits of SBA 7(a) loans.
Interest Rates
SBA interest rates are often lower than traditional small business loans. As a result, you’ll pay less to borrow funds to grow your business. The current interest rate for an SBA loan through NEWITY’s platform is 10.25%.
Term
SBA loans have long repayment terms, which keep monthly payments low. This can help you be approved for, and afford, a larger loan amount. The current term for an SBA loan through NEWITY’s platform is 10 years.
Prepayment Penalties
There are no prepayment penalties for SBA 7(a) loans. You can repay the loan amount before it’s 10-year term without additional fees. SBA loans offered through NEWITY’s platform also carry no prepayment penalties.
Collateral Requirements
SBA loans under $50,000 do not require collateral. For loans over $50,000 up to $250,000, business collateral may be required if it is available. SBA loans offered through NEWITY’s platform also follow this collateral structure.
Closing Costs & Fees
SBA closing costs and associated loan fees are low. These fees are not collected in cash or out-of-pocket, so you can borrow immediately without needing to save to cover fees. SBA loans offered through NEWITY’s platform carry minimal closing costs starting at $1,650.
Now that you now the benefits of SBA 7(a) loans, see how much you can qualify to receive. It’s simple — At NEWITY, we’ve streamlined the application process. In less than 10 minutes you can be preapproved for an SBA loan and receive an estimated loan amount.
