If you want to expand your business, you may need a loan to make it happen. Fortunately, there are many options for financing that are designed specifically to help you expand your operations. The key to success is matching the features and requirements of these options with your operational goals. Here are three commonly-used loans for expanding your business that you can consider for your financing needs.

SBA 504 Loans

SBA 504 loans are designed for small business owners who want to purchase commercial real estate or equipment to expand their operations. Their features include:

  • Up to $15 million loan amount 
  • 10-year term up to a 30-year amortization 
  • Interest rates between 6.0% and 6.75% 
  • Application process is between one and two months  

Construction Loans

Construction loans are more effective for veteran entrepreneurs looking to expand their business through hotel franchises, multi-use office space, or assisted living facilities. Their features include:

  • Up to $30 million loan amount 
  • 3-24-month term 
  • Interest rates between 6.5% and 8.5% 
  • Application process is between two and four months  

Bridge Loans

Bridge loans are much shorter term compared to other options. They are good for refinancing needed due to deterioration, purchasing distressed properties, or taking advantage of a time-limited opportunity. Their features include:

  • Up to $15 million loan amount 
  • 2-4-month term 
  • Interest rates between 8% and 10% 
  • Application process is between two and six weeks  

Whether you are looking to expand your business for the first time or want to take advantage of a sudden opportunity, these loans may be just what you need to be successful. Matching the features of a loan to your goals and operations will help ensure that, as you make progress in business, you can continue to achieve your ambitions and grow into the business you want to have in the future.