Access Up to $5 Million: New SBA Credit Lines for Small Businesses
Thu | June 2024
At One Park Financial, we understand that running a small business has its fair share of challenges and opportunities. While we don't offer SBA loans, small business owners like you need to stay informed about new financing options that could make a big difference.
The U.S. Small Business Administration (SBA) recently announced new government-backed credit lines of up to $5 million. Here's the scoop on what this means for you.
What You Need to Know About the New SBA Credit Lines
1. Up to $5 Million in New Credit Lines: The SBA is introducing new credit lines, providing up to $5 million to small businesses. This initiative aims to offer more attractive terms for lenders and borrowers than their existing products.
2. Working Capital Pilot Program: Launching soon, this new pilot program is designed to simplify the borrowing process, making it easier for small businesses to secure the working capital they need to grow and thrive.
3. Competitive Interest Rates: The new credit lines will feature interest rates based on the prime rate plus 3% to 6.5%, which works out to about 12% to 15% in today's terms. This makes borrowing more affordable for small business owners.
4. Enhanced Loan Guarantees: To encourage more lenders to participate in the program, the SBA is offering increased loan guarantees. For loans exceeding $150,000, the SBA will guarantee 75% of the loan amount. For loans under $150,000, the guarantee is even higher at 85%. This reduced risk for lenders is expected to expand access to capital for small businesses.
Why This Matters to You
These new SBA credit lines can be a game-changer for many small business owners. Here's how:
1. More Financing Choices: By being aware of all your financing options, including SBA loans, you can make informed decisions for your business. While One Park Financial specializes in alternative financing solutions, knowing about SBA-backed credit lines allows you to create a well-rounded funding strategy tailored to your needs.
2. Potentially Better Terms: These new SBA credit lines offer better terms and conditions than traditional loans or credit cards. With higher guarantees and competitive interest rates, these loans can be a cost-effective way to get the capital you need.
3. Support for Growth and Expansion: Whether you're looking to expand your operations, invest in new equipment, or manage everyday expenses, having access to significant credit lines can provide the financial flexibility you need to achieve your goals.
Considering Financing Options for Your Small Business? Here's How We Can Help
At One Park Financial, we understand that navigating the financing landscape can be complex. While we don't directly offer SBA loans, we can still be a valuable resource for your business:
Alternative Financing Expertise: We specialize in various alternative financing solutions, such as revenue-based financing, which can provide fast and flexible access to capital. Let us help you explore these options to see if they align with your needs.
Free Consultation: Our financial experts can assess your business goals and financial situation to recommend suitable financing options, including connecting you with a network of funding partners.
Qualify for Revenue-Based Financing with One Park Financial
Are you a small to medium-sized business with at least three months of operation and a monthly revenue of $7,500 or more? Here's how you can get started with us:
Complete Our Online Pre-Qualification Form: It only takes 2 minutes.
Consult with Our Experts: We'll connect you with a financial expert to discuss your needs.
Receive an Offer Quickly: Get a financing offer in under 48 hours.
Access Your Funds Fast: Once approved, receive your funds the same day!
It's that simple! We have flexible requirements (minimum credit score of 500). Apply today to get started!
Disclaimer: The content of this post has been prepared for informational purposes only. It is not intended to provide and should not be relied on for tax, legal, or accounting advice. Consult with your tax, legal, and accounting advisor before engaging in any transaction.