Small business loan florida
The southernmost region of United States of America has a picturesque beach city, which attract more then 60 million people per year to see and enjoy it sun drenched beaches. The state famous for its Walt Disney World Resort, Universal Orlando Resort and oranges is known by the name Florida. Although tourism and agriculture are main occupation of the state, there are other business too which makes a big chunk of the GDP of Florida. Such as phosphate mining, commercial fishing, small business etc.
As per the current data by Sources: such as U.S. Department of Labor, Employment and Training Administration; U.S. Department of Commerce, Census Bureau; Dept of Labor, Bureau of Labor Statistics.) Small business has been the economy boosters since 2003. the total number of small businesses in the state of Florida are 1,540,500 in 2003 and the fact that out of 426,245 employer firms in 2003 the number of small firms was 421,100 which is about 98.8 , which makes this sector just invincible. A whooping number! Guess, what is making the small business so much important for the state of Florida is the rate at which it\\'s providing employment to the population of Florida. Small business with fewer then 500 employees numbered 354,193 in 2001 and employed 44.6% of the nation non-farm private workforce. That probably one of the reason that the federal government through The united States Small business Administration is trying to help small businesses to acquire loan for their startup and expansion. Small businesses in Florida are dependent on commercial bank and local bank service for their financing needs
The United States Small Business administration (SBa) was created by congress in 1953 to help the small entrepreneurs to start off small business and for further financial needs. SBA loans are not the federal government financed loans but are loan from the lenders, which are guaranteed by the federal government. The main purpose being that the small businesses can get financial help when needed by the backing of government security, which they are not able to acquire simply by their guarantee or goodwill. Although to apply for the SBA loan in Florida or any where in United States you have to fulfill some pre qualification which are as following Let\\'s go through them before treading in to information about the loans available to you in by SBA in Florida
1. Borrower should have at least 10%- 20% of down payment. Which depend upon on the type and purpose of the loan
2. You should have a collateral even your goodwill can survive the test.
3. The business should be owner operated own.
4. The small business to "efor profit" business.
5. Usually the lender requires you to have an acceptable credit history. A Becon score of at least 640 is required.
6. The borrower should be a US citizen.
7. Borrower has not filled for bankruptcy in last 2 years.
8. If the borrower or guarantor is involved in any law suit, they should have a valid explanation for this.
Hence these are some qualification that you have qualify to apply for a SBA loan in Florida. lets now discuss the loan options you have in Florida
1.504 loans for purchasing the Real Estate: SBA 504 loan is meant for those small business entrepreneurs who want to acquire a loan to build or develop their own facilities. The borrower of SBA 504 loan can avail facilities like loan for a longer period of time, below market interest rates and that too at fixed rate financing. The SBA 504 loan is available for real estate financing as well for equipment financing.
Some facts about SBA 504 loan for Real Estate financing are:
the borrower has to provide 10-20% down payment.
minimum bank project size should be $250,000
mostly a portion of the loan is financed by the lender and a potion by CDC
the term of loan is for 10-20 years
the interest could be variable or could be fixed rate.
the fees of the lender ranges from 1% to 2.5% of the loan amount while the SBA fees is 2.5%-3.5% of the loan amount
SBA 504 loan for Equipment Financing
minimum bank project sized is fixed at $250000
loan is funded by the lender and a portion by CDC
10% down payment
the term is from 7 years to 10 years.
2.7A Guarantee SBA loan: the 7A SBA loan Guarantee program provides the lender or the bank up to 75% guarantee on long term loan when the loan amount is used for the purpose of buying fixed asset, for working capital or for the refinancing of exiting debts for small business.
Some facts about 7A loan used for purchase of Real Estate
mostly the bank provide a minimum loan of $250,000
loan is funded by the bank or lender. The SBA guarantees 75% of loan amount up to a limit of $2 million.
10% down-payment of the total cost.
the interest rate is variable in this type of loan
term is 25 year maximum
SBA 7A loan for purchase of Equipment
minimum bank loan of $250000
the borrower has to shell out 20% down payment of the total cost
maximum 10 Year term is applicable here
bank fee can be as high as $1500
SBA 7A loan for working capital or refinancing
the minimum loan that you get is $250000
the interest rate is variable
the term period is 7 year in this loan
loan is funded by the bank although the SBA guarantees 75% up to the maximum of $2 million
So these are some of the options which are really conducive to start and enhance your small business in the state of Florida. Almost all the bank have these loan in it purview and many lenders also offer you these loan. You can check on the site of SBA for the detailed list of lender in your county.
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