[jtsfunding]

Have a merchant in the construction / landscape business doing 250k a month has one MCA out with 140k balance. He is looking for traditional deal 500k to expand over the next coming years looking for 2-5 year term. Has 725+ credit. He has been offered SBA deal for 500k but does NOT want to borrow from the goverment. Anyone out there wanting to fund a deal like this or knows what his best options are please reach out! jackson@teamgccap.com

[abfunders]

So the SBA is not borrowing from the government. The government is just backing 85% of the loan so that the true lender (the bank) is willing to lend at higher risk.

[abfunders]

Oh, and after the bank originates the loan, they sell it off to the hedge funds. But it's still government back-stopped that if there's a default, the SBA will cover the loss for the bank. The only thing is that then the SBA will go after the merchant. But either way, it's not actually borrowing from the government.

[Olderguy]

Micah is correct - the SBA just guarantees the loan to the bank at 85%
$500,000 SBA will require collateral - business assets and maybe personal assets as well, depends on the lender.
But it's 10 years at 10.5% at 30 years with a monthly payment
Term loan could be 2 - 5 years but interest in the 20's.

[1Loanguy]

Can help you with that. Just sent you a message from raddison@bankloandepot.com