Are you a small business owner in Cheyenne, Wyoming looking to get a loan? The process can seem intimidating, and there are certainly important questions that you should be prepared to answer before you enter a loan negotiation. This article will provide answers to those questions, including what kind of loan you can get, where to find a downpayment, the best bank for a business loan, and how hard it is to get a business loan.
What kind of loan can I get for my small business?
The type of loan a business can get is dependent on the size, scope, and purpose of the loan. According to SBA.gov, “The Small Business Administration (SBA) offers three main types of loans: SBA 7(a) loans, microloans, and disaster loans.”
SBA 7(a) loans are long-term, low-interest loans designed for businesses that are unable to get financing from other sources. These loans can be used for working capital, expanding a business, or buying real estate or equipment. The SBA does not issue 7(a) loans directly. Rather, the SBA works with third-party lenders who provide the loan with an SBA guarantee.
Microloans are smaller loans, typically up to $50,000, that are issued to businesses that need a small amount of capital. These loans are typically offered through commercial lenders or community-based non-profit lenders.
Finally, the SBA also offers disaster loans to businesses that have been impacted by a declared disaster. These loans are used to help a business recover and rebuild in the wake of a disaster.
How do I get a downpayment for a small business loan?
The amount of a downpayment on a business loan will depend on the type of loan and the lender in question. The SBA does not require a downpayment for 7(a) loans, however some lenders may ask for a small downpayment. For microloans and disaster loans, a downpayment or collateral may be required.
It is important to remember that the amount of downpayment or collateral required will be determined by the lender. It is important to shop around and talk to several lenders before choosing the right one for your business loan.
Which bank is best for a business loan?
The best bank for a business loan will depend on the type of loan and the individual needs of your business. It is always important to compare lenders before making a decision. To make sure you are getting the best deal possible, it is a good idea to shop around and talk to several different lenders about their loan terms and interest rates.
In Cheyenne, there are several banks that provide small business loans, including Chase Bank, First Financial Bank, Wells Fargo, and U.S. Bank. You should take the time to research each bank to determine which one is the best option for your business loan.
Is it hard for small businesses to get loans?
There can be a variety of reasons why small businesses have difficulty getting loans, including lack of collateral, a bad credit history, and lack of experience in business. However, it is important to note that the Small Business Administration is a great resource for small businesses in need of a loan.
The SBA can provide small businesses with access to loan guarantees and consulting services that make it easier to get a loan. The SBA also works with lenders to provide loan guarantees, which reduces the risk associated with the loan and makes it easier for lenders to offer the loan to small businesses. Finally, the SBA also offers special loans for specific purposes, such as microloans or disaster loans.
Conclusion
Getting a loan for a small business can seem intimidating, but there are resources available to make it easier. The Small Business Administration is a great resource for small businesses that need a loan, offering loan guarantees, consulting services, and special loans for specific purposes.
It is also important to remember that the best bank for a business loan can vary, depending on the type of loan and the individual needs of the business. Shopping around and talking to several lenders can be beneficial in finding the right loan for your business.
References:
References
SBA.gov. “Types of SBA Loans.” U.S. Small Business Administration, www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/types-sba-loans.