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Empire State Bank is an approved SBA lender, dedicated to growing businesses. The SBA will loan of up to $5 million. Loan proceeds can be used for working capital, to purchase real estate, make improvements to business property, purchase equipment, expand a business, consolidate debts, purchase a business, construct a new facility, or finance a franchise.
Successful entrepreneurs realize the importance of obtaining adequate financing to support growth while preserving cash flow. SBA (U.S. Small Business Administration) financing provides a flexible means to obtain long-term financing for virtually any worthwhile business purpose.
The SBA will guarantee loans of up to $5 million. Loan proceeds can be used to purchase real estate, make improvements to business property, purchase equipment, expand a business, consolidate debts, purchase a business, construct a new facility, or finance a franchise.
SBA guaranteed loans are not direct loans from the U.S. government. Instead, they are loans provided directly by a local lender like Empire State Bank, with a partial guarantee provided by the SBA. Empire State Bank, rather than the government, will monitor and service your loan. The government’s involvement relates to the guarantee only in the event of default.
Contrary to a common myth about SBA financing, it does not take an inordinate amount of time to obtain funding. Empire State Bank will expedite the SBA application process so that it is simple and completed in a timely manner. Another common misconception is that SBA financing is only for companies that are unable to receive traditional bank financing. On the contrary, SBA financing will not be extended to any business that does not demonstrate the ability to repay debts. The longer terms allowed with SBA financing can enable a company easier debt qualification based on lower payments.
Closing costs for an SBA loan generally include an SBA guarantee fee, which is assessed on a sliding scale depending on the loan amount. It is important to note that this fee and other closing costs are normally included in the loan amount and consequently paid over the term of the loan.
The flexibility provided by SBA financing makes it attractive for all types of businesses. It is a financing option that should be considered whenever a business is expanding or attempting to improve its cash flow.
If you’d like to learn more, please call Empire State Bank at 866-646-0003. Or, simply speak with an Empire State Representative at Banking Center near you.