My name is Sara Shikhman, and I’m the managing partner here at Lengea Law. We work with numerous healthcare start-ups, especially in the med spa realm. A common question from our clients revolves around business funding, particularly small business loans and SBA loans. To provide valuable insights, we invited an expert in this area to be interviewed on our YouTube channel. Ami Kassar, founder and CEO of MultiFunding, has extensive experience in helping business owners secure the best loans for their needs. He has provided invaluable insight and advice for small businesses on securing funding to grow their venture.
Introducing Ami Kassar
Sara: Ami, thank you for joining us. Please tell our community about yourself.
Ami: Thank you, Sara. I’m delighted to be here. I’m Ami Kassar, founder and CEO of MultiFunding. For nearly 15 years, we’ve been assisting business owners and entrepreneurs nationwide in securing the best loans for their situations, often focusing on SBA loans to help them grow, scale, and maintain control of their businesses.
SBA Loans Defined
Sara: So, what exactly is an SBA loan?
Ami: Great question. Many people think SBA loans are government loans. However, unless it’s an economic injury disaster loan requiring a crisis, the SBA doesn’t make loans directly. Instead, the SBA provides a guarantee to banks and some non-bank lenders, allowing them to make riskier loans than they usually would. It’s important to know that if one bank denies you an SBA loan, another might approve it. Different banks have different guidelines and appetites for various loan types.
Sara: How big or small can an SBA loan be, and what can it be used for?
Ami: SBA loans can range from as small as $1,000 to as large as $5 million for the 7(a) program and $12.8 million for the 504 program. They can be used for various purposes, including starting a business, buying out a partner, working capital, growth capital, buying real estate, and equipment purchases. For example, if you need to buy equipment for your med spa, the SBA offers longer repayment terms than typical leasing companies, which can significantly reduce your monthly payments.
The SBA Loan Process
Sara: What is the typical timeline for obtaining an SBA loan, and what criteria must be met?
Ami: For loan requests under $500,000, it should take less than 45 days, ideally faster. For larger amounts, it can take 60 to 90 days due to additional complexities like business appraisals or real estate evaluations. Generally, any partner owning 20% or more of the business must personally guarantee the loan. Collateral isn’t always required; SBA lenders focus on cash flow and well-thought-out projections, even for new businesses with solid business plans and creditworthy founders.
Sara: What documents are needed to apply for an SBA loan?
Ami: Applicants need a personal financial statement, three years of personal and business tax returns (if applicable), current year-to-date financials, and a business plan if it’s a projection-based loan. Different banks may have slightly different requirements, but these are generally what you’ll need.
Sara: What are the typical terms and rates for SBA loans?
Ami: Most SBA loans have 10-year terms unless real estate is involved. Current rates are around 11.25%, with no prepayment penalties. These rates adjust with prime, so they may decrease if interest rates go down.
MultiFunding’s Role
Sara: How does MultiFunding assist businesses in obtaining loans?
Ami: You can go directly to a bank, or you can use our services where we advocate for you throughout the process. We don’t charge you extra as we get paid by the bank. With our nationwide expertise, we often match you with the best bank for your needs, which might not be in your immediate area. We ensure your application reaches the right lenders to maximize your chances of approval.
Advice for Applicants and Final Thoughts
Sara: Any advice for small business owners preparing to apply for SBA loans?
Ami: Have a clear plan and strategy. Money alone doesn’t solve all problems. We’re happy to discuss your needs, ask challenging questions about your goals, and recommend the best loan options. Understanding what you’re trying to achieve is crucial to finding the right financing solution.
Sara: Any final words for healthcare entrepreneurs?
Ami: You’re doing important work, and we’re here to support you. Feel free to reach out to us anytime at Multifunding.com or directly at Ami@multifunding.com. We’re happy to help you through the various stages of your venture.
Thank you, Ami, for your valuable insights. I’m sure our clients and followers will find this information extremely helpful. We look forward to collaborating further.
If you have any legal needs or questions about planning for your business, we’re here to help. Please contact us for a complimentary 15-minute consultation. At Lengea Law, we focus on healthcare law and have extensive experience guiding clients through all aspects of the business.
Contact Us
team@lengealaw.com
Tel: 646-396-0804
This interview is for informational purposes only and does not constitute legal advice. Please consult a legal professional for advice specific to your situation.