The SBA Bridge Loan Program is administered through the Small Business Administration This national project offers loan guarantees for lending partners, helping to eliminate risks for lending partners. There are several different types of SBA loan guarantee programs. Each program focuses on business-specific circumstances, as set forth by the SBA. Each bank structures a specific commercial loan according to government standards and requirements, which enables them to qualify for a SBA guarantee.
The SBA Bridge Loan Program
Rapid Advance is a financing program that helps business owners resolve obstacles that may arise during the SBA approval process. When the bank approves a loan request, the business owner is then required to obtain a guarantee. This guarantee authorization requires that the owner meet certain funding requirements. One of these requirements is paying all past due taxes, which allows tax liens to be released.
A tax lien is a lien imposed by a local government agency to secure the payment of taxes. However, it may also arise in connection with estate taxes and gift taxes of federal taxes, such as income taxes.
How the SBA Bridge Loan Helps Business Owners Pay Tax Liens
A business owner can use the SBA Bridge Loan program to assess necessary capital to help resolve any outstanding tax lien issues and receive a reduced payoff amount when the SBA loan is approved. This loan can be used to finance day-to-day management and replenish any extra cash needed that the business spent applying for the loan.
Additional SBA Bridge Loan Benefits
Additional benefits of using the SBA Bridge Loan program include that the business’ qualifications focus on cash flow, not on credit scores. These systems also rely on using automated repayment systems, which makes it simple to repay loans over set periods. They do not require fixed assets as collateral for loans, which makes these loans unique and non-conforming. While these types of loans offer higher-than-average interest rates, they also have higher approval rates, minimal paperwork, less hassle and monies and can be provided within three business days.
This helpful website provides details on several types of alternative business financing, which includes, but is not limited to business cash advances, working capital loans, business lines of credit, transportation industry funds, liquor store financing, medical industry lending, restaurant loans, short term business capital, factoring for businesses, bad credit business loans, unsecured business loans and Veteran business loans.