USDA Business Loans vs. SBA 7A

USDA Business Loans vs. SBA 7A

In this episode of the Investor Financing Podcast, we discuss the pros and cons of USDA BNI loans versus the SBA seven A loans. We delve into factors such as loan size, loan-to-cost ratio, amortization period, eligibility for nonprofits, and funding availability.

- Loan size: SBA 7a loans are capped at $5 million, while USDA BNI loans can go as high as $25 million.
- Loan-to-cost ratio: SBA 7a loans offer 90% LTC, while USDA BNI loans typically provide 80% LTC.
- Amortization period: USDA BNI loans are amortized over 30 years, allowing for lower monthly debt payments and increased cash flow.
- Eligibility: USDA BNI loans are more flexible, catering to nonprofits, tribes, for-profit businesses, and cooperatives, unlike SBA loans.
- Funding availability: USDA BNI loans may have limitations due to available funds, potentially affecting the ease of funding for certain transactions.

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Timestamps:
(00:41) Comparison of SBA 7A and USDA BNI Loans
(01:18) Focus on USDA loans serving rural areas, determined by mapping systems.
(02:00) Streamlining Differences and Flexibility
(02:57) Encouraging exploration of funding options for USDA and SBA loans.
(03:30)Emphasis on the benefits of longer amortization and increased cash flow associated with USDA loans.

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#SBA7a #USDABusinessLoans #USDAVSSBA7a

About Beau: Beau Eckstein is a franchise consultant, commercial mortgage advisor, and business ownership coach who helps entrepreneurs buy, build, and expand their businesses. He assists aspiring entrepreneurs in finding their ideal franchise or business opportunity. Beau's expertise as an investor and business owner allows him to guide clients through the entire process of acquiring, funding, and growing their ventures.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

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