Austin Business Lawyers

Small Business Loans

For small businesses looking to secure financing, there are various types of loans available from many different sources. Loans can be used for almost any operation in business: securing office space, construction or renovation of properties, acquiring raw materials or machinery, and operational capital.

Some important types of loans include:

• Micro loans
• SBA loans
• Franchise financing
• Development financing
• Import/Export loans

A micro loan is a small amount of money, typically between $5,000 and $35,000, that can be used for any business operation. There are typically few to no restrictions on how the money can be spent.

An SBA loan is a loan from a private source that is guaranteed by the government’s Small Business Administration. The SBA itself is unable to provide capital for loans, but it does secure loans made by private sector institutions.

Franchise financing is more specialized, as it is reserved for franchisees of large, well-known companies. This is a very valuable resource, but is only available to individuals buying into large franchises.

Development financing is often seen as more a “traditional” type of loan, as it typically involves long-term payment plans with fixed rates of interest. This kind of loan would be for significant, fixed assets (i.e. office buildings, warehouses, land, etc.).

Import/Export loans are available for companies with an international presence. There are specific programs at banks designed to accommodate exportation of goods through insurance, loans, guarantees, and other methods.

If your business needs financing, it is important to protect yourself against predatory lending and other potentially damaging situations. Contact the experienced Austin business lawyers of Slater Kennon & Jameson today at 512-472-2431 for legal counsel.