If SBA 7(a) loans become directly available through the agency if it's under $150K, would an established business be more advantageous than a new one?

Moving to LA from NYC. Was going to wind down 6-year-old LLC and start new one in CA. But the additional tax and admin burden could be worth it if I need my company's age to get more funding (banks aren't friendly to game devs so I never bothered with the 7(a) process in the past). This proposal is part of the infrastructure bill and may not pass. If it does...need to know if it changes my plans.


An established business with revenue is almost always better than a new LLC. You can consider registering your LLC as a foreign entity in CA.

Answered 3 years ago

If SBA 7(a) loans become directly available through the agency for amounts under $150K, both established businesses and new businesses may benefit from the availability of these loans.

For established businesses, the advantage may come from their existing financial history, which may make them more attractive candidates for loan approval. They may have a proven track record of generating revenue and managing expenses, which can make them more creditworthy in the eyes of lenders.

On the other hand, new businesses may also benefit from the availability of these loans if they have a solid business plan and projections for revenue growth. They may also be able to use the funds to establish a strong financial foundation for their business.

Regardless of whether a business is established or new, the terms of the SBA 7(a) loan program can be advantageous. These loans typically have longer repayment terms than traditional loans, which can help businesses manage cash flow more effectively. In addition, they may have lower interest rates and require less collateral than other types of loans.

Ultimately, whether an established or new business is more advantageous will depend on the specific circumstances of the business and its financial history. However, the availability of SBA 7(a) loans can provide a valuable source of funding for businesses of all types.

Answered a year ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2024 LLC. All rights reserved.