Title: SBA Loans Aren’t Just for Startups: 5 Times an Established Business Should Consider One

When you hear “SBA loan,” you might immediately think of someone launching a brand-new business.

But SBA-backed financing can also be a valuable tool for established businesses preparing for their next move.

Depending on the loan program, eligible small businesses may be able to use SBA financing for needs ranging from real estate and equipment to working capital and business acquisitions. The right option depends on your business, your financial position and what you’re trying to accomplish.

Here are five situations when it may be worth talking with your banker about SBA financing.

1. You’re ready to purchase or improve real estate.
If your business has outgrown its current location or you’re considering purchasing property rather than continuing to lease, certain SBA loan programs may help finance eligible owner-occupied commercial real estate and improvements.

2. You need new equipment.
From manufacturing equipment to machinery and other major fixed assets, an SBA loan may provide a financing option when your business needs to invest without using a significant portion of its available cash.

3. You’re considering buying another business.
Acquiring an existing business can create opportunities for growth, additional customers or expanded capabilities. SBA financing may be an option for qualified business acquisitions.

4. Your business needs additional working capital.
Growth can require cash before it generates cash. Depending on the SBA program, financing may be available for eligible working-capital needs, helping businesses manage expenses while pursuing new opportunities.

5. You’re evaluating existing business debt.
In certain circumstances, eligible business debt may qualify for refinancing through an SBA-backed loan. Your banker can help determine whether your situation meets program requirements.

Start With a Conversation

SBA financing isn’t one-size-fits-all, and it isn’t reserved for businesses just getting started.

At Bank Michigan, we work with business owners to understand where they are today, where they want to go and which financing options may make sense along the way.

If your next chapter includes property, equipment, an acquisition or another major investment, start the conversation with your local Bank Michigan banker.

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