Whether you are thinking of starting your own business or expanding your business to take advantage of the current economic opportunities, you need to know about all the opportunities available to you and your business in order to succeed.
The Kim Group is committed to helping small businesses, which are the backbone of the nation’s economy, not only succeed but thrive. We work closely with a wide range of financial institutions and stay current on the various financial programs that are being offered to benefit businesses in this economy. We also stay current on the local government offerings to businesses such as GAP financing, Enterprise Zones, TIF districts, and various economic incentives, in order to ensure your business gets the most benefits at any given location. These benefits are driven by the desired location, workforce, and community need. So they are provided and offered on a case-by-case basis.
Some of the more commonly known financing programs for small businesses are:
- SBA 504 loan – this is the most popular loan with banks because it is not as labor intense for the banks. The benefits of this loan program are:
- Half of the loan is FIXED, usually prime plus 2% which is around 6% today
- 10 year pre-pay
- 20 year amortization
- Can be used for refinancing and/or acquisition
- SBA 7a loan – this is loan program is noted as being the most beneficial to small businesses. The benefits of this loan program are:
- 90% of loan guaranteed by government
- 25 year amortization
- 3 year pre-payment penalty
- Can be used for refinance
- NOTE: The government just increased the limit of these loan amounts to $5million
- USDA – a lot of banks are not familiar with this loan program. The benefits of this loan program are:
- Can be used for any property – office building, NNN leases, student housing, etc.
- Maximum loan size is $20 million or the bank’s loan limit
- 30 year amortization @ around 6% (subject to change)
- Used for rural area, less than 50,000 people – so property must be within their designated area to qualify
- 90% government guaranteed
Please contact us to setup a meeting to start discussing your business needs. So we can get to work for you and your business.