SBA Loan Pros & Cons

SBA Loan Advantages:

  • SBA business loans have lower monthly payments
  • SBA Loans have flexible terms
  • SBA Startup Loans generally have a low down payment
  • There are no balloon payments with these small business loans.
  • SBA financing offers lines of credit with 7-year commitments.

SBA Loan Disadvantages:

  • SBA lending generally takes a few extra weeks to process, as opposed to conventional commercial loans.
  • SBA loans require additional collateral like inventory, receivables, equipment, and property.
  • There are prepayment penalties with small business administration loans.

See more on Prime Commercial Lending’s SBA Loan Program, here.

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