In 2017, the U.S. computer and electronics repair industry took in $18 billion of revenue and employed nearly 140,000 workers across the country. While the industry has been challenged by the reduced costs of electronics, companies in the right market can still take in a big profit. So, if you’re looking for financing to open, expand, or refinance business debt on a computer repair company, an SBA loan could be the perfect option.
How Computer Repair Companies Can Benefit from SBA 7(a) Financing
The Small Business Administration’s SBA 7(a) program guaranteed more than $25 billion in loans during 2017, helping thousands of business across the U.S. The 7(a) program is incredibly versatile, allowing borrowers to use loan funds for a variety of purposes, including equipment, working capital, and owner-occupied commercial real estate.
Computer and electronics repair companies can use SBA 7(a) loans for:
Working capital: Paying utility bills, employee salaries, and other regular expenses can be a challenge for computer repair companies, especially if they’re going through a rough patch. Fortunately, SBA 7(a) program permits up to 10-year terms for working capital loans, helping businesses get the cash they need to stay afloat.
Refinancing eligible business debt: If you’ve already taken out a loan to fund your computer repair business, and the high interest rate is cutting into your monthly cash flow, you may be able to refinance it with an SBA 7(a) loan.
Expanding your computer repair business: If you want to build a new location, the 7(a) loan provides commercial real estate loans with terms of up to 25 years.
Purchasing equipment: Computer repair equipment can be costly, but getting a SBA 7(a) loan can help cover some of the costs.
Other SBA Loans for Computer and Electronics Repair Companies
SBA 7(a) loans are a fantastic option for many computer repair companies, but they’re far from the only SBA loan on the market. Some computer repair firms may find that SBA microloans, which are offered in amounts up to $50,000, are a better fit, due to their lower credit requirements. Or, for businesses who want up to $350,000 fast, an SBA Express loan could be a better option. These loans require significantly less paperwork than 7(a) loans, and can be funded in as little as 30-45 days.