Filed under: Small business

Starting a business can take months — and can be pricey. Also, it’s tough to anticipate some of the problems you’ll run into. That’s why buying a business can be a good substitute.

So where do you get financing? One approach is to get a Small Business Administration loan.

Basically, this is like any other business loan. However, the main difference is that the loan is guaranteed up to 85% from the SBA, which is a federal program. Because of this, there are usually advantages versus conventional loans, such as:

• Longer terms (10 years for the business, and 25 years if there’s real estate involved).
• Lower interest rates (prime rate plus 2.25% to 2.75%)
• Lower down payments (20% to 30% or so). In fact, the down payment also includes seller financing.

OK, what does it take to get such a loan? Let’s take a look.

Continue reading Entrepreneur’s Journal: Using an SBA loan to buy your dream business

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This entry was posted on Friday, September 26th, 2008 at 11:21 am and is filed under Small Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.