The Small Business Administration (SBA) is a U.S. government agency that seeks to help small businesses thrive. One of the most popular ways that they offer support is through their SBA loan programs. With SBA loans, small businesses can gain access to critical funds necessary to grow their business and meet their goals.
SBA loans have several benefits for small business owners, such as competitive interest rates and longer repayment terms. One of the greatest benefits of choosing SBA lending over traditional financing options is the flexibility in which small business owners can utilize the loans. As a contracting business, there are several aspects of your business which may require additional funding. Here are some examples of the many ways a contracting business may utilize SBA lending funds:
Invest in a good location
Choosing the right location to operate your contracting business out of can have a major impact on the amount of work you’re able to bring in. However, a real estate purchase can be costly, and many small businesses cannot fully fund such a purchase on their working capital alone. The competitive rates and long repayment terms of SBA loans make them a great option for funding real-estate purchases. Some SBA loans can even provide a down payment of as low as 0% for owner-occupied commercial real estate. Thanks to these loans, you can finally reap the benefits of capitalizing on real estate opportunities.
Get the best equipment
Having up-to-date equipment can help to push your business ahead of the competition. Maybe there’s a new piece of machinery or equipment that can help to make jobs go by faster. Or maybe you need a bigger truck to transport materials from one site to another. Whatever your business may need, investing in the industry-best equipment often requires spending more. With an SBA loan, your business will have the extra funds necessary to make such a purchase without completely draining your accounts.
Bring on more employees
If your contracting business wants to bring on more work, it’s going to need the right amount of employees to support such a workload. To attract high-quality hires, you’ll need to be able to offer an enticing pay rate. Thankfully SBA loans can be utilized for operating capital, such as payroll. The extra cash acquired through small business loans allow your business to offer competitive wages and attract quality employees that can continue to push your business ahead.
Stay afloat through slow seasons
Each trade experiences its own unique slow season. For many contractors, the summertime offers a large boom in work, while the colder winter months lead to a large drop in business. Surviving these slower months can be tricky, but thankfully an SBA loan can help. SBA lending enables small business owners to have access to extra funds to draw on when demand rises and smooth out any cash flow issues as demand drops, allowing your business to more easily manage the ups and downs of business.
How to get access to SBA loans
If an SBA loan sounds like what your business needs, and you meet the eligibility requirements, applying for an SBA loan is more efficient and easier than ever thanks to our new digital application. Combined with our SBA Preferred Lender status and the support of our experienced SBA Lending team, we can provide a more efficient, flexible, and streamlined loan process and help you achieve your funding goals sooner.
By Michaela Lenahan in SBA Lending
