SBA 7(A) Loans & Why They Matter in the Small Business Market

In October of 2016, Fresno First Bank was declared as the top Community Bank SBA Lender for the Central Valley for its fourth year in a row.

We were able to approve a total of 37 SBA 7(A) loans that totaled to an amount of $16.7 million. This is a tremendous honor for Fresno First Bank and is something we strive to accomplish every year. However, many may not fully understand why SBA 7(A) loans are so fantastic and its correlation with small business success.

Benefits of SBA 7(A) Loans

These loans truly are on small business owner’s side and aim to lead them down to their road of success. With SBA loans, they allow more time for them to be paid off. This is extremely important as it permits small businesses to not drown in immediate debt and having to rely on a fast turnaround of profit. This type of pressure is one of the many reasons why 33% of small businesses will fail in their first 2 years of business.

Ultimately, SBA loans offer greater flexibility, potentially low down payments, a simplified prepayment penalty plan, and many other features to keep the borrowing process simple and beneficial towards the small business borrower.

How SBA Loans Can Lead to Success

The core reason why SBA loans are so popular among small business owners, other than the benefits explained above, is merely because of its simplicity. By covering the borrower’s needs through an uncomplicated way and providing a time frame that best suits their needs, SBA 7(A) loans allows small business owners to focus on their business’s success. This could mean expanding the business with new equipment, growing the space, or just starting a whole new business entirely.

Whatever the needs are, SBA 7(A) loans aim to ensure its success. As it is well know, if small businesses succeed, then our economy will succeed.

This is precisely why we pride ourselves in being declared as the top Community Bank SBA Lender of the Central Valley. It is our goal to be part of small business success, like that of Dumont Printing and Maria’s Tacos. We recognize that these types of successes will ultimately lead to the overall success of the Central Valley.

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