Discover the New SBA Credit Lines for Small Businesses

The U.S. Small Business Administration (SBA) plans to unveil new government-backed credit lines of up to $5 million for small businesses. This pilot program aims to provide more attractive working capital options than current SBA offerings, addressing ongoing challenges small businesses face in securing funds for infrastructure or expanding operations. The SBA’s broader efforts include guarantees through the 7(a) loan program, which backed over 57,000 loans worth $27.5 billion last year, though uptake on revolving credit lines has been lower than expected. The new product simplifies access to working capital with an annual fee, interest rates based on the prime rate plus 3% to 6.5%, and a 75% guaranty for loans over $150,000, and an 85% guaranty for smaller loans.

Read More: https://greyjournal.net/news/discover-the-new-sba-credit-lines-for-small-businesses/

Hosted on Acast. See acast.com/privacy for more information.