The Small Business Act of 1953 created the United States’ Small Business Administration. For several decades, the Administration has provided information, advice and loans to smaller firms across the country. The SBA works with preferred lenders such as Gipson Commercial Solutions to process loan applications and deliver funding to qualifying businesses.

How the 7(a) and 504 Programs Work

The Administration’s primary funding vehicles are its 7(a) and 504 programs. Both provide money for land and equipment – purchasing real estate, paying for new constructions, funding improvements and buying existing facilities. But their focuses are slightly different. The 504 program lends money for fixed assets that lead to job creation and business growth, including long-term machinery and heavy equipment.

The 7(a) program lends to companies that meet special requirements. These include having “reasonable invested equity” and using other funding methods before seeking a loan. It offers money for several business needs:

• Short-term and long-term working capital
• Furniture, fixtures and supplies
• Debt refinancing

Each small business loan comes with some great benefits. Your company can qualify for up to $5 million with full amortization and terms as long as 25 years. The Administration offers funding for up to 90% LTV.

The Administration’s Business Acquisition Loans

The 7(a), 504 and other programs also offer money for purchasing other businesses. These loans supply up to 80% financing will full amortization and terms up to 15 years. There’s no ballooning involved, nor any penalties for early payoff.

Your Source for Small Business Funding

Gipson Commercial Solutions has a diverse portfolio with many commercial finance solutions. Businesses in virtually any industry can get funding. We offer SBA loans, purchase order financing, franchise loans, accounts receivable financing, loans for commercial real estate and much more.

Our certified financial specialists can recommend the best funding options for your company and help you apply. Contact us now to get started. We’d love to discuss how we can help you succeed and grow.