How Small Business Owners Can Find an SBA Lender Near Them in Santa Barbara

SANTA BARBARA, Calif., July 6, 2021 (Newswire.com) - For many small business owners, 2020 was a challenging year to keep finances intact. For business owners who saw a downturn in revenue or who found the opportunity to expand during challenging circumstances, you may be considering a small business loan to give you a financial advantage.

With so many loan products available, it can be hard to find the right loan for your small business. Choosing the right loan product and an established lender is essential to ensure that any loan helps, rather than hinders, the long-term needs of your business.

Here's how to evaluate whether an SBA loan is the right choice for your business, and how to find a preferred SBA lender near you.

Why choose an SBA loan?

Many small businesses took advantage of an SBA loan product in 2020 — specifically, the Paycheck Protection Program (PPP) or Economic Injury Disaster Loans (EIDL) offered to help businesses weather the pandemic.

For businesses that didn't qualify for those loans or who could use greater financial assistance than those gave, there are the standard SBA loans:

• SBA 504, which helps existing for-profit businesses access or refinance real estate and equipment
• SBA 7(a), which is a more flexible loan for for-profit businesses to use towards tenant improvements, commercial real estate purchases, franchise purchases, business expansion, long-term working capital needs and more

SBA loans help business owners access greater loan amounts with capped interest rates, long repayment terms, and low down payment requirements. SBA loans are able to offer this because they're guaranteed for 75% of the value of the loan by the U.S. Small Business Administration, meaning the risk taken on by lenders is lower than other business loans.

The drawbacks of SBA loans

SBA loans may require that personal assets of the business owner, such as their home, securities or even cash, be used as collateral. Depending on what is collateralized for the loan, that could lead to personal or professional difficulties down the line.

For example, collateralizing securities or cash can make it more difficult to access your full liquidity which could impede further growing your business down the line.

If you work with a lender that isn't an SBA preferred lender, they need to submit that loan to the SBA for approval, which can cause additional delays if you need fast capital.

How to find an SBA preferred lender

Choosing a preferred SBA lender near you can help keep the process as simple and fast as possible. Your lender can help you weigh your options for a loan as well as what interest rates are currently available. SBA preferred lenders are also able to approve loan offers directly, rather than submitting them to the SBA.

Small business owners can use the SBA's Lender Match to find lenders that can meet their needs, including lenders offering PPP loans.

Santa Barbara business owners have an SBA lender near them in Union Bank. As an SBA preferred lender, Union Bank is ranked #3 Most Active SBA 7(a) Lender in the state of California for 2019, giving their bankers the background needed to guide you through the SBA loan application process.

With the right lender that can understand and meet your needs, an SBA loan may be able to help your business thrive through 2021.

Source: Union Bank