Clopton Capital Announces New Focus on SBA Loan Services
Clopton Capital Announces New Focus on SBA Loan Services
Chicago, Illinois (PRWEB) August 17, 2011
Clopton Capital wants business owners to know specifically about three key SBA loan programs that they believe will become more and more important over the next two years. These three programs are the SBA 7a loan, the SBA 504 loan and the MicroLoan Program.
“These programs will become far more important as the tidal wave of commercial debt hits the lending market over the next two years”, said Jake Clopton, the founder of Clopton Capital.
The Small Business Administration defines the 7a loan as a loan program that includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes. Clopton Capital lends up to $ 5,000,000 under this program and the government guarantees up to 90% of that investment.
The Small Business Administration defines the 504 loan as loan program that is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization. Clopton Capital provides these loans in cases where there is collateral and the collateral can be borrowed against at up to 90% loan-to-value. They can issue loans of this type up to $ 15,000,000.
The Small Business Administration defines the Micro Loan Program as short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries make loans to eligible borrowers. The maximum loan amount is $ 50,000, but the average MicroLoan is about $ 13,000. Clopton Capital does not provide these loans, but did want to mention them as they can help many businesses struggling to find working capital.
With exception to the MicroLoan program Clopton Capital provides these services and believes they will become a larger portion of their business as other private forms of financing become less available to future business owners and SBA loans will have to provide more capital to bridge the demand between commercial borrower and business lender.
For more information about Clopton Capital’s services visit CloptonCapital.com today, or call them at 866.647.1650.
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