Is an SBA Loan Best for Buying a Buiness?

This may not seem like the best time to buy a business, but there are a lot of people who buy and make businesses successful during the most trying of times. Many great businesses were founded during the worst times, such as the Great Depression. If you are looking to buy a business, you may want to think about a Small Business Administration (SBA) Loan. However, is that the best thing you can find to buy a business? We have some thoughts.

What Is An SBA Loan?

Small Business Administration loans are government loans administered by the Small Business Administration. The SBA has six different kinds of loans. Most people get an SBA 7(a) loan, because it can be used for all kinds of business expenses, such as buying a business. As with any loan, there are requirements, such as the loan has to be for a legitimate business expense, and the business can only be classified as a small business in order to be eligible for this loan.

Is An SBA Loan A Good Idea?

If you are looking to buy a business, and you are looking for financing, there are a couple of things to consider before you take out an SBA loan. One of the most important things you need to know is that in order to secure a small business loan to buy a business, you may have to put up personal collateral, such as your home. If you are not willing to risk your house, you may want to look for financing elsewhere.

When you need advice from people who know small businesses, give Hallmark Business Brokers a call at 941.445.4726, or come by and see us at 230 Tamiami Trail, Suite 2 in Venice. We look forward to working with you!