Many small businesses have struggled to stay open and operate profitably in the current market conditions. A raise in prices and low cashflow can make it difficult for small businesses to operate. Business financing can help owners fund their businesses.
The Small Business Administration (SBA) helps small businesses obtain funding funding through different types of loans, including direct loans for disaster recovery and COVID-19 relief programs. The loans offered can be classified as 7(a) loans, 504 loans, Microloans
7(a) loans are the best option when real estate is part of a business purchase, but it can also be used for:
- Short- and long-term working capital
- Refinance current business debt
- Purchase furniture, fixtures, and supplies
504 loans are long-term, fixed-rate financing to purchase or repair real estate, equipment, machinery, or other assets
Microloans are $50,000 or less loans that help small businesses and certain not-for-profit childcare centers start up and expand.