Growing Your Small Business In The New Year
As we enter the New Year, many business owners will spend some time evaluating new opportunities and addressing any challenges that may have popped up over the last year or two. Almost every growth strategy, business expansion, or significant equipment purchase will require additional capital. With interest rates still considered historically low, now may be the time for small business owners to learn more about their financing options. That’s where the Small Business Administration (SBA) combined with the resources of Western Alliance Bank can help.
As long as an applicant meets all credit approvals and submits the required legal documentation, SBA loans can be a great resource offering beneficial loan rates and longer terms than conventional financing.
The SBA’s most common loan program is the 7(a) loan.
This type of loan can be used for several purposes, including:
- Working Capital
- Purchase of Equipment
- Purchase of a Franchise
- Refinancing Debt
- Purchase of Real Estate
One of the first decisions a business owner will have to make is what is the loan’s purpose, according to Roe Belzer, director, business banking at Western Alliance Bank. “What project are you trying to accomplish? With that answer, a business owner will need to determine what resources - including a cash down payment - is available to contribute to the desired project. That’s one way to determine if the SBA loan will be beneficial to you and your business.”
A 7(a) loan can range from a few thousand dollars up to a maximum of $5 million.
A borrower can choose a fixed-rate or variable-interest-rate loan.
Who is eligible for a 7(a) loan?
Most small businesses are eligible for financial assistance from the SBA, with some exceptions that your banker can provide. The more general eligibility conditions include:
- Business must be a for-profit entity
- Be a small business as defined by the SBA
- Doing business in the United States
- Have reasonable owner equity to invest (typically minimum of 10% equity)
The first step in determining whether a SBA 7(a) loan is the right option for your business is to speak with an experienced banker. Our SBA Banking Team is ready to help and will provide the experienced insight that businesses have come to rely upon.
For more information, call Western Alliance Bank at (602) 389-3500 or contact your relationship manager.
Western Alliance Bank
With more than $85 billion in assets, Western Alliance Bancorporation is one of the country’s top-performing bank holding companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, offers a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by industry experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2024 by American Banker and Bank Director and receiving #1 rankings on Extel’s (formerly Institutional Investor’s) All-America Executive Team Midcap Banks 2024 for Best CEO, Best CFO and Best Company Board of Directors. Serving clients nationwide, Western Alliance Bank includes six legacy bank brands — Alliance Association Bank, Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank and Torrey Pines Bank — that continue to be part of the company’s heritage.