The saying “support small business” seems to be popping up everywhere these days, and with good reason since small businesses play a vital part in the US economy. There are approximately 28 million businesses in the US that account for 54% of all US sales and 55% of all jobs. Since the 1970’s, small businesses have been accountable for 66% of all net new jobs. In 2016, Mid Penn Bank helped create 296 jobs by providing financing through the US Small Business Administration’s (SBA’s) loan programs.
What is an SBA Loan?
An SBA loan is a term note or line of credit from a bank to a business that is unable to receive traditional financing from other lending channels on reasonable terms. Since small businesses can be viewed as high risk investments, the SBA guarantees participating banks a certain percentage on the money they lend in the event the owner defaults. This “shared loss” program reduces the risk to the bank and makes it easier for business owners to receive the financing necessary.
SBA Loan Programs
The SBA offers several different loan programs based on businesses’ specific needs.
- SBA Advantage Loans 7(a) – The financing from this program can be used for working capital, revolving funds, equipment purchases, real estate purchases, leasehold improvements, refinancing existing debt and more.
- SBA Express – As a subset the 7(a) loan program, this program is designed for businesses with financing needs up to $350,000. The proceeds can be used to finance a variety of business activities.
- SBA Grow Loans (504) – The proceeds of this loan program provides financing for the purchases of major fixed assets such as land, improvements, construction of new facilities, and also long-term machinery and equipment.
Why choose Mid Penn Bank for an SBA loan?
Our local, National Association of Government Guaranteed Lenders diploma certified, SBA officer will meet with you in person and make the SBA lending process less complicated and less cumbersome. We have no minimum loan amount. We offer competitive rates and fees and do not require an upfront deposit or fee to qualify the loan. All SBA packaging and servicing is done in-house, which will save you time and money. Most importantly, since we are a full-service bank with a range of non-SBA loan products, we will be there for you when you are ready to transition to traditional lending.
Are you, or someone you know, thinking about growing or starting a business? We can open the door to new opportunities. For more information about SBA loans, please contact our SBA team at 717-259-9019.