JDM Capital Solutions

There are a lot of misconceptions about SBA Loans.  One is that anyone who owns a small business can get one.  Second, that the government just "gives" out money.  Neither of these facts are true.  In order to secure a SBA Loan, a business owner needs to have a formal business plan as the first step.  Then, depending on the type of loan will need to have some kind of equity or collateral to put into the deal.  The most widely used SBA Loan is the 7A program.  Under this program, almost any type of for-profit  business can receive financing.  However, they typical business owner will need to have collateral amounting to about 20% of the deal.  Under the 504 program, this can be used when business are purchased and real estate is involved in the deal.  The new owner will have to occupy at least 51% of the building to receive the loan under this program, but only has to put up about 10% in the way of collateral.  To discuss either option in more detail, please call me Jeff Maitles at 631-656-8728.