National and municipal banks and other commercial credit companies often offer SBA loans as part of their credit products. Some lenders make large loans and have therefore committed themselves to individuals and departments that are exclusively dedicated to the granting of SBA loans, while other lenders are « dull » in granting SBA loans, as the lender may not be as experienced as the SBA`s products and lending policies. There are essentially three types of SBA lenders: a preferred lender is one who can make certain loan decisions without the approval of the SBA; A certified lender receives preferential treatment from the SBA; and a general lender is one of the holders of a commercial credit license. Some lenders provide only 7 (a) loans or 504 loans, while other lenders offer both these and other SBA loans. In addition, for 504 loans, the CDC is an indispensable party involved in the closure, financing and service of loan 504. A CDC is a private, not-for-profit corporation created to contribute to economic development in its community. The CDC`s work with the SBA and private sector lenders for small business financing, which achieves the Community`s economic development and job creation objective. Each state has one or more CDC files. While the choice of the borrower`s form and the structure of the business are personal to the owners of the business – and often this decision is motivated by important tax and relational factors – there are generally entity and structure requirements of the SBA that must be met with respect to the audit of the SBA loan. It is therefore very important to check as soon as possible with the lender and the borrower`s legal advisor (and accountant) regarding the choice of business for the borrower and the structure of the business.
Most SBA loans fall into two categories: 7 (a) and 504. An SBA loan is a loan to small businesses from a private lender (for example. B a local bank or other lender), which is in turn guaranteed by the Small Business Administration (SBA) in accordance with the provisions of the U.S. Small Business Act as amended (« Act »). Although an SBA loan is sometimes difficult due to the additional regulatory requirements of the SBA, an SBA loan is very user-friendly and offers a financing mechanism that all businesses should at least consider. In fact, most businesses find lenders who are more sensitive to a loan when the borrower applies for an SBA loan. HERE ARE THE QUESTIONS FREQUENTLY ASKED AND CORRESPONDENCE GENERAL ANSWERS REGARDING SBA 7 (A) AND 504 LOANS. AS SBA LENDING IS A VERY BROAD AND DYNAMIC INDUSTRY – WITH STATUES, REGULATIONS AND POLICIES OFTEN CHANGING – THE FIRM RECOMMENDS THAT YOU CHECK WITH A LENDER OR WITH LEGAL COUNSEL EXPERIENCED WITH SBA LENDING FOR THE MOST CURRENT INFORMATION ON SBA LOANS AND LENDING LAWS, RULES AND POLICIES. AUSSI, YOU CAN VISIT WWW.SBA.GOV FOR MORE INFORMATIONS. How should the company and borrower be structured for an SBA loan?.