How SBA loans can help your small business

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As a small business owner, you’ve probably heard of the Small Business Administration (SBA). This is the federal government agency dedicated to helping start, build and grow small businesses in our communities. One of the ways they do this is to “guarantee” loans that banks make to small businesses. These are called SBA loans.

What makes an SBA loan different from other loans?

Because an SBA loan is guaranteed by the federal government, the loan is deemed to be less risky to finance from the bank’s perspective. As a result, banks are more likely to approve a loan that qualifies for an SBA guarantee – which is good news for small businesses. While you apply for an SBA loan at a commercial bank, like Webster, the loan is structured according to SBA guidelines. Compared to a conventional loan, SBA loans usually offer:

  • Lower down payments in many cases
  • Longer terms and amortization periods
  • Financing for closing costs in many cases

What’s the difference between an SBA loan and an SBA 504 loan?

SBA loans are designed to meet specific business needs. 504 Loans are designed to assist small businesses in acquiring fixed assets such as real estate and equipment, and promote economic development in our communities. Here’s a link to the SBA's resource center that describes all the different loans available.

What does is mean to be the #1 SBA & SBA 504 lender in New England1?

Webster has partnered with the SBA for over 25 years. We are pleased to be the number one lender in New England by dollar volume for 2021 SBA 7(a) and 504 loans, No. 1 in Connecticut for 15 of the last 16 years and among the Top 100 most active 7(a) SBA Lenders in the country according to the Small Business Administration.

“As a preferred SBA lender, our team of bankers has the leadership, experience and deep understanding of SBA programs to enable us to best serve our small business owner customers,” said Gregory Gould, SVP and Manager of Government Guaranteed Lending, Webster Bank. “We understand the challenges that small business owners have faced due to the pandemic and work with them to find the right SBA lending opportunities to meet their needs.”

How do I contact someone in the SBA or Webster about SBA loans for my business?

Disclosure

1Based on total 7(a) and 504 dollar volume. All credit products, pricing and overdraft protection are subject to the normal credit approval process. Some applications may require further consideration and/or supplemental information. Certain terms and conditions may apply. SBA guaranteed products may also be subject to additional terms, conditions and fees. Requires a Webster business checking account which must be opened prior to loan closing and which must be used for auto-deduct of payment.

General Disclosures

The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.