SBA and USDA Blog

SBA 7(a) financing is one of the most common ways for small-businesses to access capital for growth and business expansion.  As highlighted in our recent articles, these loans offer low interest rates and long repayment terms, but navigating the application process can be difficult for many potential borrowers.

Significant SBA 7(a) loan growth in recent years has the attention of Capital Hill.  Though Congress continues to appropriate adequate funds to the program, the continued support has brought a demand for increased oversight of the program and its lenders. The Office of Credit Risk Management (OCRM) is tasked with this oversight requirement and recent

We recently explored some of the most important items to consider when using an SBA loan to help grow your small-business in The Pros and Cons of SBA 7(a) Loans.  Although SBA loans may require time and effort, the long-term advantages outweigh the cons for many small-business owners.  Specifically, those owners interested in longer repayment periods and lower interest rates.If you’ve made the decision to pursue SBA financing, the application process can seem intimidating in the beginning.  However, keeping these four main areas top-of-mind can help you efficiently and effectively navigate the process from start-to-finish.

Barring any unforeseen market events, 2019 should continue to be a year of slow, positive growth for SBA 7(a) loan secondary market premiums.  Last year, we experienced some of the steepest declines in secondary market premiums in years, with 10-year, fully priced SBA 7(a) premiums swinging nearly 340 basis points between FY Q2 and Q4.

If you’re a small-business owner looking for capital to expand, you’ve likely come across SBA 7(a) loans – the nation’s most popular type of loan offered through the U.S. Small Business Administration (SBA).One common misconception is that the SBA lends directly to small-businesses.  In reality, the SBA 7(a) Loan Program partially guarantees loans made by banks or other direct lenders to eligible small-businesses.  The program aims to promote economic growth by encouraging lenders to partner with small-businesses that may be struggling to secure financing on reasonable terms.  Because of the guaranty, SBA loans tend to have lower monthly payments than other types of loans.  However, there are some drawbacks that must be considered prior to getting started with your application.