SBA Loans in New York

In order to get a better overview of what it means to get SBA loans in New York, let’s first explain what an SBA loan is.

SBA loans, otherwise known as SBA-backed loans, are financing products that you can leverage for almost any business expense, including:

• Equipment purchases
• Expenses, like rent and utilities
• Working capital management
• Inventory purchases
• Hiring new employees
• Launching a new marketing initiative
• Expansion
• Purchasing a new business
• Implementing new technological systems

The possibilities are endless, but you’ll need to receive an approval before you can start using the funds in your business. Generally, your business will need:

• A 685+ credit score

• 2+ years in business

• And at least $500,000 in annual revenue

To give yourself a good chance, and your odds only increase with stronger financial information.  The lender you’re dealing with doesn’t assume all the risk, however, as the SBA guarantees a portion of the loan. The backing makes the loan more attractive to lenders, who will, in turn, offer more favorable terms. 

The SBA determines the interest rate you pay on your financing through the prime rate. This is usually lower than other financing options, which is why so many entrepreneurs seek to leverage SBA loans in their businesses. There are many benefits to SBA loans in New York, but there is one more challenge—the underwriting process.

Banks, credit unions, and online lenders all need time to review your information, determine your eligibility, and submit your application to a lender, and that doesn’t include the time they have to wait before receiving a decision. The process is especially lengthy, lasting up to 8 months in some cases, which stands as a hurdle for entrepreneurs who need fast funding. 

National Business Capital is a solution to this problem. We’ve streamlined the process to 45 days, allowing you to secure the funds you need promptly and begin to use them to support your growth.

Our years of relationships with lenders combine to help us speed up the process significantly, and with an award-winning team behind every deal, we won’t waste any time. If you’re looking to secure an SBA loan in New York, you can trust that National has your back.

If SBA loans in New York won’t work for your specific situation, there are many other financing options available to you. Here are a few of the most common SBA loan alternatives:

Term Loans

Term loans are one-time lump sum payments that you must repay within the terms outlined by your lender. SBA loans are technically term loans at their core, but the added benefit of an SBA loan comes from the partial backing guaranteed by the SBA.

You can seek to secure a term loan from a bank, credit union, or online lender to use for almost any business purpose, but you may need to offer a detailed plan of how you intend to use the borrowed amount to receive an approval. 

There isn’t necessarily a borrowing limit on term loans. Your specific limit will likely depend on the lender you’re dealing with and your business’s financial information. You’ll need to shop around to find the best deal, or you can speed up the process by teaming up with the experts at National Business Capital.

Term length

Can be short-term or long-term – less than one year or up to 25 years

Interest rates

Starting at the prime rate to 6%

Ideal for

One-off purchases or investments, when you know exactly how much a project will cost, long-term financing needs

Business Line of Credit

Business lines of credit are one of the most flexible financing options available—revolving lines of credit where you only pay interest on the amount you draw. Once you repay the borrowed amount, you can draw the same funds again, allowing you to stay one step ahead of the latest challenge. You can draw physical cash, too, which is the main difference between a business line of credit and a business credit card.

Interest rates are usually higher on average compared to other financing options, but the one caveat is that you only pay interest on what you draw. You may also need to offer collateral as a method of securing the line of credit if your business doesn’t have a strong credit score, time in business, or annual gross revenue.

Term length

Revolving

Interest rates

Starting at the prime rate to 6%

Ideal for

Ongoing purchases or investments, working capital needs, when you don’t know the final cost of a project, long-term financing

Equipment Financing

Equipment financing can break down a sizable asset purchase into more manageable monthly payments, allowing entrepreneurs at all stages of business to secure the equipment they need to stay competitive.

You can finance vehicles, construction equipment, medical devices, and much more. Plus, making consistent payments on your financing can qualify you for additional tax deductions and work to strengthen your credit score. Get equipment financing in New York.

Term length

Two to seven years, on average

Interest rates

 2% to 20%

Ideal for

Businesses that need specific equipment to operate at the highest level, one-off purchases, anyone who has an opportunity to purchase equipment in bulk and increase their capabilities

SBA loans can be used for almost any business purpose. You can expand your storefront, purchase equipment, hire new staff, or use the funds as working capital—it’s up to you.

You’ll likely have to provide your SBA lender with a detailed plan of how you intend to use the funds, though, so come prepared. This step won’t stand in your way unless you’re planning to use your funds for an unorthodox business purchase or a non-business expense.

With the SBA’s low interest rates and favorable repayment terms, SBA loans are an excellent option to help you grow and scale. Here are a few ways that we’ve seen entrepreneurs leverage SBA loans in their operations:

Business Growth

Buy new equipment or inventory, hire new staff, or prepare for seasonal changes.

Business Expenses

Get extra working capital to manage payroll, bridge gaps in cash flow, or pay bills.

Business Opportunities

Expand or open a second location, take on more clients, or capitalize on bulk order discounts.

SBA loans are tools for business growth, but securing one isn’t always as easy as it seems. With strict eligibility requirements, mountains of paperwork, and a lengthy underwriting process standing between you and growth, your best course of action is to team up with a marketplace that leverages multiple lenders and can streamline the process—National Business Capital.

At National, we do the heavy lifting for our clients. All you have to do is complete our digital application and securely submit your business’s financial information.

Once you do, we’ll reach out to you within minutes and begin to learn about you, your business, and your challenges to find best-fit financing options for your specific circumstances. All of our Business Finance Advisors are experts in their craft, understanding every aspect of the business loan process, and are uniquely capable of helping you receive your funds in half the time of a traditional lender.

Ready to get started? Complete our digital application today and kickstart your business’s growth!