Landscaping Companies Grow with SBA 504 Loans
Landscaping services have experienced ongoing growth and demand as the housing market has improved. Since 2013, the landscaping industry has experienced almost 6% growth each year. And, in 2018, the industry is expected to create an incredible $93 billion in revenue. All this means that it could be a great time to expand your landscaping firm.
Despite the opportunities that the market offers, landscaping business owners face serious hurdles here, particularly when it comes to finding the capital needed to get grow. Fortunately, SBA 504 loans can help. 504 loans are designed for specific uses, including the purchase and improvement of real estate, the purchase or construction of buildings, and the purchase of fixed equipment. The costs of landscaping equipment can be immense; for instance, a single backhoe can cost tens of thousands of dollars, even in used condition.
Landscaping Entrepreneurs May Want to Look Toward Other SBA Loan Options in Order to Fund Working Capital
With an SBA 504 loan, business owners can find their dream and grow their business. However, there are restrictions; these loans cannot be used for working capital, and cannot be used in conjunction with leased equipment. Borrowers who want working capital financing may find that the SBA 7(a) loan is a better fit. Like the SBA 504 loan, the 7(a) loan is offered in amounts of up to $5 million, but it can be used for working capital and other general business uses, not just real estate, construction, and fixed equipment. Other SBA loan options include the SBA express loan and the SBA microloan, both of which may be suited for borrowers who need a smaller amount of money with less hoops to jump through.
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