- SBA loans are a business-friendly financing option created by the U.S. Small Business Administration.
- There is a wide range of eligible uses for an SBA loan, which gives entrepreneurs more power over how to use the borrowed funds.
- This list of 50 ways to use an SBA loan is just the beginning. With affordable capital, the possibilities are wide open.
How would you grow your business with extra capital on hand?
That’s the question when it comes to Small Business Administration (SBA) 7(a) loans. These loans were created for entrepreneurs so that American businesses have access to the support they need to succeed in the modern economy.
SBA loans come with unique business-friendly terms and can be used in multiple ways to start, grow, or build a business. At West Town Bank & Trust, we’ve helped thousands of entrepreneurs access capital through the SBA 7(a) Loan Program to accomplish their business goals and prepare for future success.
This article lists 50 ideas for how to leverage SBA financing to take your business to the next level.
What Can SBA Loans Be Used For?
SBA loans can be used for a wide range of business growth initiatives. These government-guaranteed loans can be used for any activity related to starting, growing, or building your business. The flexible eligible uses of proceeds enables business owners to have a high level of control over how they choose to use funds.
Can SBA Loans Be Used For Personal Use?
Short answer: No. The Small Business Administration’s loan programs were created in support of entrepreneurs and their businesses. Keyword: businesses. While you may be personally involved with your business operations, the funds from your loan must still be used for direct business-related expenses. Not your personal expenses.
Here are 50 ways you can use your SBA loan…
Start Your Business
SBA loans can be used to finance the costs associated with starting a business, such as purchasing equipment, renting a facility, and hiring employees. Use an SBA loan to…
1.Acquire a business.
2. Hire your first employee.
3. Launch a marketing and PR announcement.
4. Fund a grand opening campaign.
5. Invest in branding and logo design.
6. Buy office space instead of leasing.
7. Purchase service vehicles.
8. Purchase office furniture.
9. Purchase inventory.
Grow Your Business
SBA loans can be used to fund the expansion of a business, such as opening a new location or adding additional employees. Use an SBA loan to…
10. Hire consultants or third-party partners to develop your business.
11. Buy a second book of business.
12. Invest in customer experience improvements.
13. Hire new employees to increase service capacity.
14. Invest in employee benefits to retain employees.
15. Open a second location.
16. Invest resources into an influencer marketing strategy.
17. Build and implement employee training programs.
18. Access working capital to balance busy and slow seasons.
19. Refinance Merchant Cash Advance debt, business lines of credit, or high-interest credit cards.
Refinancing Debt with an SBA Loan
The Company: May Global Business Group is a consulting and trading company in the specialty metals industry. The Company offers consulting services related to the silicon metal industry, while also buying and selling metal materials to customers around the world.
The Problem: Before engaging West Town Bank & Trust, May Global Business Group had two outstanding loans, both with interest rates exceeding 20%.
The Solution: To consolidate this debt and secure a lower monthly rate, May Global Business Group received an SBA 7(a) loan that offered them a substantially lower interest rate.
The Results: Reducing their loan interest expense allowed them to improve cash flow and increase their bottom line.
Modernize Your Business
SBA loans can be used to fund renovations or improvements to a business, such as upgrading equipment or improving a facility. Use an SBA loan to…
20. Renovate office space.
21. Update point of sale technology.
22. Scale e-commerce efforts and online sales.
23. Purchase or upgrade your tech-stack to automate your processes.
24. Pay relocation costs to move your operation.
25. Convert manual service stations to automated ones.
26. Invest in “green” Initiatives.
27. Perform R&D for new products.
28. Launch a new product line.
29. Rebrand your business.
Franchise Your Business
Use an SBA loan to get your franchise off the ground, or transition to a new franchise owner. Use an SBA franchise loan to…
30. Pay franchise fees and royalties.
31. Refit a commercial space for a franchise.
32. Lease a commercial space.
33. Ramp up social media and marketing budgets for the franchise.
34. Pay an attorney or professional service firm to consult on legal agreements.
35. Cover payroll while your franchise gains traction.
36. Launch a new website.
37. Onboard a new team.
38. Pay for your team to travel to franchise conferences.
39. Pre-qualify a buyer to help speed up the sale of your franchise.
40. Hire a consultant to help increase a business valuation.
41. Buy an existing franchise business for sale.
Start, Grow, or Build Your Business.
How Franchise Owners
Use SBA Loans.
Small Business Administration Loan Programs give entrepreneurs the power. You choose how to use the funds to grow your business.
- Purchase a Franchise
- Outfit a Commercial Building
- Hire and Train Employees
- Access Working Capital in the Off Season
- Purchase or Lease Equipment
Build Your Business
SBA loans open the door to build your business from the ground up. Use an SBA loan to…
42. Build your first brick-and-mortar location.
43. Build a second location.
44. Pay for building materials.
45. Purchase warehouse or storage space.
46. Purchase commercial real estate.
47. Pay contractors and specialty construction costs.
48. Cover expenses in the event of construction delays.
49. Account for unexpected building expenses.
50. Renovate a commercial property for your business.
So, what would you accomplish with affordable capital? Start turning today’s goals into tomorrow’s success story. Use the form below to pre-qualify for an SBA loan. A financing expert for your industry will reach out to schedule a time to discuss your goals and the next steps to financing.