Published By Credit Suite at December 17, 2015
Small Business 7(a) loans are well known and loved in the business community.
If you are awarded a 7(a) loan, the loan proceeds may be used to establish a new business or to assist in the acquisition, operation, or expansion of an existing business.
Directly from the SBA, here are some of the uses for loan proceeds:
• The purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities
• The purchase of equipment, machinery, furniture, fixtures, supplies, or materials
• Long-term working capital, including the payment of accounts payable and/or the purchase of inventory
• Short-term working capital needs, including seasonal financing, contract performance, construction financing and export production
• Financing against existing inventory and receivables
• The refinancing of existing business indebtedness that is not already structured with reasonable terms and conditions
• To purchase an existing business
SBA 7(a) loans are a great conventional way of obtaining business financing.