The Pro’s and Con’s of the SBA 7a Loan

Too often banks will lure you into the SBA 7a program flaunting its benefits, but hiding its weaknesses until the very last minute leaving the entrepreneur feeling “some type of way.” SBA Ray believes in the opposite. In this video, I share all the pro’s and con’s of the SBA 7a loan program, starting with what I consider to be the 2 least attractive aspects of the program. I’m here to arm you with the facts – the good, the bad, and the ugly – and while the SBA 7a loan is a wildly popular program, it’s not for everyone. After watching this video, you should know one way or the other if the SBA 7a loan is the right financing product for your business.

#sba #loan #lending #smallbusiness

[Schoolimangooli]

This is a great video. I’ll like to add a CON. The loan has to reamortized when the interest changes in Feb. With the recent Fed increases making these loan’s interest at 10-11%. A lot of the principal doesn’t get amortize. So the payment increases dramatical when it gets reamort, because the loan has to fully amortize by the end of the loan term.

[rosszeiger]

Super valuable SBA info. Clearly and concisely delivered. I will be referencing this video often!

[steque]

Thank you for this Ray! Very educational ✅

[Earnwithvern]

EXCELLENT video. Very transparent and informative.

[RMDareGreatly]

Thank you for the great summary Ray!

Loved the pros and cons

[oleksiygutor]

If we are in Texas and looking to buy several Franchises? Would 7a be an option?

[tommycalzadias]

Very helpful and informative video. Thank you

[jaythebarber]

I am a barber looking to open a barbershop. What would I more than likely have to do to get approved for a SBA loan and what would be the best kind to apply for or look into

have you heard of that being used for mobile home parks or RV parks?

[busyb]

Great video and content!

For a business acquisition - can you use funds from an equipment loan to serve as your 5%/10% injection in conjunction with the 7A?

Essentially acquiring a business with none of your cash.

[arslanburki]

Good information, thanks for that. I am running a used car dealership from almost a year now. It's profitable and would like to get a SBA 7a to buy commercial real estate. Do you think I would need cash injection or any downpayment requirement? 800 + score, not a home owner but have good personal cash in bank.

[getchabandzup]

I have a few small multi family properties, looking to acquire a 20 unit. How can I get in touch with you ?

[tiffanyharrison]

What if you don’t own a home or do not want to use your home as collateral? Are there other forms of collateral you can give?

[hcp]

I have around 100k. I want to build a barbershop which will cost me 50k for equipment, renovating and plumbing and everything else and lease the building space. I’m confused if I should get a micro loan, sba 7a loan or just pay everything with my own money. I just took out the LLC and I’ve been a master barber for 5 years and decided to open a barbershop. Me and my business partner have 750 credit scores and I have one other successful business that not with barbering.

What should I do? Use my own money? Or should I use the money as a secured loan to borrow the money. I have no idea about loans and really need some help

[johnR_TravelDiver]

Is there any type of drawback or con to leasing office space vs buying a building/office in terms of applying for the SBA 7a?

[markb]

Can you use seller financing in conjunction with an SBA 7A loan? Business price of $3M, $5M annual revenue, $500k+ cash flow, hard assets of +$1M+.

[martindabravolskis]

I have a trucking company that generates around 8 million gross per year and I am looking to add more units to my fleet. I have several lenders approved for the loans for the units but was wondering if a SBA 7a loan would be a better option. The lenders I have ask for 10%, price per unit is $195k I have 5 units looking to purchase.

[matthewvictoria]

Let’s say I already started a business but not officially registered and I want to make it official and buy commercial real estate to make it legit would I be able to get SBA or do I need to turn it into an official LLC first ?

[towersroofinginc]

Very quick and to the point video! What happens if you don't have enough equity on your home for the amount you're asking? I have been in business for over 20 yrs in the construction industry and business is doing great considering the high cost of everything! In a way I guess it's because I am in the right market and people will always be in need of a new roof, windows, siding, etc. I want to be able to buy some land and build a shop to store massive amounts of materials as the savings from buying in bulk are huge! I also developed technology that has helped my business tremendously and would like to get it to the spot where it can actually generate money. (would I be able to use those funds for that as well?)

[Tedjones]

Hey Ray, love the videos so far they are very insightful. I’m looking to acquire an already profitable business that has been operating for 9 years. Purchase price is $770, 000 and my issue is i do not have the total amount required for a 10% down payment per SBA7a requirements.

With a credit score of 750 and being the owner of a business already that i can self sustain financially, do you think my odd’s of applying for a loan from a bank for the down payment and getting approved are good? Thanks!