Using SBA loans in NYC gives starting and growing businesses the ability to establish themselves and expand operations, respectively. However, there is a lot of misinformation floating around about securing SBA loans in NYC, where to get them, and how they can be used. Our team has put together an article to clear up the confusion about SBA loans in NYC.
The SBA Is Not A Lending Institution
One of the biggest questions we get about securing SBA loans in New York City is if lenders will have to deal directly with the Small Business Administration. The SBA is not a lending institution. The Small Business Administration performs a huge function by setting the guidelines for borrowers and lenders alike, and set the structures for various SBA loan programs. From there, traditional and commercial lenders are able to process applications for SBA loans in NYC, and perform the underwriting and approval. The SBA does not get involved directly in the loan process.
Getting An SBA Loans In NYC Depends On The Lender
For the longest time, only banks were allowed to process applications for NYC SBA Loans. Over the years, more businesses started popping up throughout New York City, and traditional lending channels became bogged down with requests. Between the approval process for SBA loans, and the regular internal bureaucracy, many entrepreneurs were not receiving funding in a timely manner. To fix this, the SBA started designating select commercial lenders as “Preferred Financial Services” companies. Lenders with this title have the ability to handle the approval process for SBA loans in-house, thereby speeding up the rate of approvals and getting funds into the hands of local business owners. Additionally, a lender that is recognized for preferred financial services can get the most competitive rates possible for New York City SBA Loans.
New York City SBA Loans Are Not Just For Working Capital
Many people think SBA loans can only be used for working capital, like any other traditional loan. But SBA loans can be used by NYC entrepreneurs for much more. Local small businesses can use SBA loans in NYC for financing equipment and other large assets, construction, franchises, commercial real estate, and even refinancing existing debt.
Abel Commercial Funding is recognized as a “Preferred Financial Services” company among SBA lenders. We specialize in small business financing solutions, including SBA loans in NYC. Contact our offices today at 301-200-9801 to learn more.