Different Loan Programs to know about.
In this article, is a list of some of the most known and unknown loan programs for entrepreneurs to inquire for their pursuits.
Private Money Loans:
A private money loan is usually a short-term loan used to purchase or refinance real estate. It’s primarily used for real estate investment acquisitions.
The loans are provided by private lenders, as opposed to traditional financial institutions such as banks or credit unions. Unlike these traditional players, private money lenders are far less burdened by red tape and regulations, which makes accessing finance quicker and more straightforward.
Hard Money Loans:
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies.
A bridge loan allows the borrower to pull cash out of the property to pay off an existing loan or settle other debt obligations. Bridge loans can also be used to help a commercial real estate investor cover part of the cost of acquiring a new property and entice the seller with a quick close of escrow.
A commercial construction loan is a kind of business loan that helps your company cover the costs associated with building or renovating structures. You can use these construction business loans to purchase land, buy materials and pay workers.
Equipment financing refers to a loan used to purchase business-related equipment, such as a restaurant oven, vehicle or copy machine. When you take out an equipment loan, you'll need to make periodic payments that include interest and principal over a fixed term.
SBA 7(a): What is a 7(a) loan? The 7(a) Loan Program, SBA's most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for: Short- and long-term working capital. Refinance current business debt.
SBA 504: provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.