Sfa Credit Agreement

When it comes to managing finances for small businesses, securing a credit agreement is often a crucial step in achieving success and growth. One option to consider is the SFA credit agreement.

The Small Firm Advantage (SFA) is a program offered by the Small Business Administration (SBA) that provides a variety of financial assistance options to small businesses. One of these options is the SFA credit agreement, which is designed to help small businesses obtain low-cost financing.

An SFA credit agreement is essentially a loan between a small business and a lender, with the SBA guaranteeing a portion of the loan. This guarantee reduces the risk for lenders, making it easier for small businesses to obtain financing at a lower interest rate. Additionally, this type of loan typically has a longer repayment term than traditional loans, allowing small businesses more time to pay off the loan and maintain cash flow.

To be eligible for an SFA credit agreement, a small business must meet certain criteria, including being located in the United States, having a net income of $5 million or less, and having a tangible net worth of $15 million or less. The business must also be able to demonstrate a need for the loan and have a strong business plan.

It’s important to note that while the SBA guarantees a portion of the loan, the small business is still responsible for repaying the full amount of the loan. Additionally, there may be fees associated with obtaining an SFA credit agreement, such as application fees, servicing fees, and prepayment fees.

Overall, an SFA credit agreement can be a valuable option for small businesses in need of financing. With the SBA’s guarantee, small businesses can obtain low-cost financing with a longer repayment term, allowing them to focus on growing and succeeding. If you’re a small business owner in need of financing, it may be worth considering an SFA credit agreement as a viable option.