Requires an unconditional guarantee as business collateral. They take into account your time in business, annual revenue and your credit score.
Specifically known as the 7(a) SBA Loan, in this term loan lenders are not required to take collateral for loans up to $25,000. For loans in excess of $350,000, the SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. If business fixed assets do not “fully secure” the loan the lender may include trading assets (using 10% of current book value for the calculation), and must take available equity in the personal real estate (residential and investment) of the principals as collateral.
Features:
Amount: $5,000 - $5,000,000
Interest Rates: ~2.25% - 2.75% depending on whether the loan matures before or after 7 years and on the kind of 7(a) loan
Loan Terms: Varies
Repayment: Flat monthly payments