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CMI Commercial Investment Company, Inc. will help you get approved and secure an SBA (Small Business Administration) loan for your business venture. An SBA loan could put your idea on the path towards a lucrative reality. Many successful companies once used SBA financing to make their goals a reality, companies like Nike, Federal Express and Apple Computers. SBA Loans are available to small businesses unable to secure financing on reasonable terms through normal lending channels.
There are several benefits to SBA loans…including longer terms and larger loan amounts than you might be able to obtain through a conventional loan. SBA loans also include competitive interest rates and no balloon payments or annual reviews. And all SBA loans are fully amortized. To understand the benefits of full amortization, consider a loan that is used to purchase commercial real estate.
Conventional commercial bank loans are usually amortized over 15 to 20 years and renewed every 3 or 5 years. When a small business owner faces the mandatory review which comes along with the conventional loan renewal process: - The financial climate at the bank (or in the country) might have changed. The bank may decide it needs to alter some of its portfolio to reduce financial risk. They may have the option to refuse renewal of your conventional loan and call the entire sum you borrowed due.
- The bank may engage in creative refinancing of the loan and reamortize it over another 15 to 20 year period. This would result in your business paying much more in interest over the term of the loan.
- If your small business is succeeding, the bank may renew the loan as is. In these cases the borrower may still be under obligation to pay large fees to complete the loan renewal application process.
If you want to eliminate all of the uncertainty and additional expense for refinancing or restructuring your loan, you may want to consider SBA financing for your small business. With an SBA loan your financing can be amortized over a full term with no annual reviews or balloon payments. The terms on these loans typically range from 7 to 25 years. This makes SBA guaranteed loans an excellent alternative in your quest for obtaining long term financing. CMI has all of the experience and contacts necessary to guide you through the SBA loan process and help your business secure the funding it needs. Use our Fast Quote application to begin the SBA loan process. |
