SBA: How this hometown resource can unlock growth for your Minnesota business

You don’t have to travel far to find what you need to grow your business. If you’re an up-and-coming Minnesota business ready for the next step, the SBA-approved lenders at your community bank are your best bet to get access to the resources you need to help your business expand and thrive. One of our specialties at Minnwest Bank is SBA lending. Up-and-coming business owners who qualify get access to loans at great rates — so you can focus on getting it done!

 What’s an SBA loan?

Government-backed loans from the Small Business Administration (SBA) are designed to bridge the gap between lenders and small businesses on the grow. If you — a small business owner — were to approach a bank for a traditional loan, you may walk away disappointed. An up-and-coming business is considered a bigger lending risk versus a well-established business, particularly one with plenty of assets to cover the loan.

This situation creates a stalemate between lender and entrepreneur.

A business can’t grow without affordable capital.

The SBA loan program is designed to remove this obstacle to your growth.

• SBA loans are guaranteed by the government.
• Lenders can put together more affordable lending packages to small businesses at a reduced risk.
• Borrowers get access to longer terms for monthly payments that free up working capital.

Thanks to the many lending options from the SBA, you can expand at a critical time without losing your working capital.

 What can you do with an SBA loan?

Whatever type of business you operate — manufacturing, agri-business, retail — SBA lending options can get you to the next level. These are some of the possibilities.

Expand into international markets

Identifying international markets for your goods and services is a great opportunity for growth. But securing the capital is no small feat because export loans are considered risky by most lenders. But the SBA Export Loan program can help you unlock access with its three lending programs.

• Export Express: The simplest and most straightforward of the export loans provides a revolving line of credit or a standby line of credit of up to $500,000.
• Export Working Capital Program (EWCP): Awards up to $5 million in financing for suppliers, materials and production. With this loan, you gain the flexibility to negotiate the payment terms for exports, with disbursements awarded upon completion.
• International Trade Loan Program: This program helps small businesses that have been affected by competitors importing to the U.S, but can demonstrate that the funds would help them compete. This program awards up to $5 million to finance improvements for new equipment, working capital or debt refinancing.

Read more: What's an SBA Export loan and how can it help?

Merge and acquire businesses

If your small business has an opportunity to grow — through purchasing or merging with another entity — traditional loans present roadblocks if you lack the hard assets. Acquisitions and mergers are one of the allowed uses under the SBA’s 7(a) loan, which disburses up to $5 million in financing. However, understanding the SBA’s requirements is critical to planning for a smooth handoff. Minnwest Bank is one of few preferred lenders that specialize in acquisition loans and our team can help you prepare.

Open a new location

Ready to purchase or build a bigger facility? Or do you need a second location to tap into new markets and handle the overflow? With a longer payment plan and competitive interest rates, you can grow without squeezing out your working capital.  

Expand your line for the big project

A revolving line of credit provides the flexibility to say yes to the one-off project, prepare for the seasonal rush or expand your offerings. You’ll need capital to purchase inventory and hire staff before the proceeds come in to cover your costs. That’s where SBA’s CAPlines can bridge the gap.

Ready to leverage the power of SBA lending?

How do you choose a lender that’s the best fit for your business? The SBA-approved lenders at Minnwest Bank bring a tailored and personal approach to each of our customers.

• Streamlined process: We streamline the loan application process, so you’ll get faster answers and quicker access to funding. Let’s get it done!
• Flexibility: Our lenders take a consultative approach and will tailor the loan to meet your needs. Your success is very important to us.
• Hometown resource: We work and live right in your community. Our expertise on the regional market and SBA lending options culminates into a powerful resource for doers like you.
• Award-winning: For five of the past six years, the SBA named Minnwest Bank as Minnesota’s top Export Lender. Learn more about our industry-leading program.

Ready to get started? Reach out to an SBA Preferred Lender at Minnwest Bank today.