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26 HARTFORDBUSINESS.COM | APRIL 25, 2022 There are approximately 355,000 small businesses in Connecticut, making up 99.4% of the state's businesses, and more continue to open annually. In fact, approximately 9,300 small businesses opened between March 2019 and 2020. Many small business owners (SBOs) require funding to make their dreams a reality, and SBA lending may be an attractive option since these loans have longer terms than conventional loans. Additionally, the SBA guarantees a portion of these loans for banks, meaning that lenders are usually more willing to approve SBA loans for SBOs who may not have the credit score or history needed for a conventional loan. Some SBA Preferred Lenders, like TD Bank, can also provide a fully fixed rate for the life of the loan, so SBOs do not need to worry about interest rate fluctuations that could increase monthly payment amounts. So, what are some of the SBA lending options Connecticut SBOs should consider utilizing to start their businesses? As the No. 1 SBA lender in our Maine-to-Florida footprint, TD provides a range of SBA lending services, but is focused on the SBA's two primary products – 7(a) and 504 loans. • 7(a) Loans: These loans help SBOs obtain financing for general business purposes including working capital, buying equipment or furniture, purchasing or renovating buildings and refinancing debt, with a maximum loan amount of $5 million. The term is 10 years for working capital and 25 years for fixed assets, which is helpful for SBOs who do not want to be locked into the 15- to 20- year terms of conventional loans. However, SBOs should keep in mind that these loans are typically more expensive upfront, require a personal guarantee and if they are not fully secured, SBOs must provide a lien on other personal assets. • 504 Loans: SBOs can consider securing a 504 loan for long-term, fixed rate financing for purchasing major assets like real estate, long-term machinery, or facility renovation, with a maximum loan amount of $5 million. However, startup costs need to come out of the business owner's pocket or be covered through another funding source. Although they do not require a personal guarantee, 504 loans typically have higher fees than a traditional bank loan and require the involvement of a third party for making payments. • Other Available SBA Funding Options: Other SBA products include disaster loans, Express lines of credit up to $350,000 and a microloan program up to $50,000 can help SBOs start up and grow their businesses. TD recently closed a $206,700 SBA 7(a) Term Loan to help local Newington, Connecticut business owners, Antonio Nunes and Bruno Allegrini, pursue their passion of opening a doggy day care, What a Ruff Life, LLC. The idea for What a Ruff Life arose after the SBOs toured several doggy daycares that were either booked or did not meet their standards of care. Recognizing the market need, Nunes and Allegrini decided to work with TD Bank to secure financing to open their own day care. "We were becoming discouraged that our dream would not become a reality and then we talked to TD Bank who guided us every step of the way," said Nunes and Allegrini. "TD Bank became a resource, confidant, trusted advisor and our biggest cheerleader. They did everything possible to ensure their financing aligned with our project timeline and we are deeply appreciative for their commitment to our business' success." How SBA Lending Can Help Connecticut Small Business Owners Start Up and Grow Their Businesses Sponsored Content By Mike LaBella, Market President, Commercial, TD Bank To learn more about TD Bank's SBA lending capabilities and how they can help Connecticut SBOs start up and grow their businesses, please visit: https://www.td.com/us/en/small-business/sba-loan-programs/.

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