What Is Working Capital?

Unlike traditional loans with rigid terms and timelines, working capital offers a dynamic, flexible solution tailored to the ever-changing needs of your business. And the best part? You only pay for the funds you utilize. The beauty of working capital is it’s not a one-size-fits-all loan. It’s a responsive resource, ready when you are. Working capital is the money available to meet your day-to-day operating expenses. When used strategically, it becomes more than a safety net. It acts as a powerful tool for growth and stability.

Here’s how you can put working capital to work:

✅ Buy Materials and Supplies

Cash flow timing can be tricky, especially when inventory needs spike before revenue rolls in. With working capital, you can stock up on the materials and supplies you need, when you need them, without waiting on incoming payments.

✅ Purchase Equipment

From upgrading machinery to investing in new tools, equipment is often essential for delivering quality and expanding capabilities. Working capital lets you make those purchases quickly, so you can stay competitive and efficient.

✅ Open a New Location

Ready to grow your reach? Whether it’s your second storefront or an expansion into a new market, working capital can help you cover the upfront costs like leasing, signage, initial inventory, and staffing.

✅ Renovate Your Space

Sometimes growth means improving what you already have. Renovating your existing space can attract more customers, improve employee morale, and modernize your operations without having to dip into your reserves.

✅ Consolidate Debt

Multiple high-interest loans or credit cards? Working capital can help you consolidate that debt into a single, more manageable solution. Streamlining your financial obligations can save money and reduce stress.

✅ Secure Funds

Even if you don’t need it right now, having working capital on hand offers peace of mind. It’s a proactive move that puts you in control of your business’s financial future, giving you the confidence to make smart moves fast.

Final Thoughts

Small business ownership is a balancing act between risk and reward, vision and practicality. Working capital gives you the power to pursue growth, respond to change, and stay agile in a competitive market. Whether you’re expanding, upgrading, or just planning ahead, working capital is there to help make it happen your way. To discuss your options and hear more about our programs, call PCF at (770) 648-8100 or email us at apps@pcfunding.com.

The post Put Working Capital to Work: How Flexible Funding Can Fuel Small Business Growth appeared first on Preferred Capital Funding.

Here’s why working with a broker can be a game-changer for business owners seeking a loan:

1. Access to a Wide Network of Lenders

One of the biggest advantages of using a commercial mortgage broker is access. Brokers work with a broad network of banks, credit unions, and alternative lenders. This means they can shop your loan around to multiple institutions, increasing your chances of securing the best possible rate and terms—not just the first one you come across. A bank might say “no,” but a broker might find you five other lenders who say “yes.”

2. They Save You Time and Headaches

Comparing rates, gathering paperwork, understanding loan structures, and chasing down underwriters can eat up days or even weeks. A broker handles the legwork for you—analyzing options, submitting applications, negotiating with lenders, and keeping everything on track. Instead of spending your time buried in loan documents, you can stay focused on running your business.

3. Better Terms and Lower Rates

Because brokers are constantly working in the lending marketplace, they understand how to structure deals and present your financials in the most favorable light. This often results in more competitive interest rates, lower fees, or more flexible repayment terms than if you approached a lender on your own. They know which buttons to push and how to get lenders to compete for your business.

Conclusion: A Strategic Partner for Growth

At the end of the day, a commercial mortgage broker is more than just a middleman. They’re a strategic partner who can help you make smarter, faster, and more cost-effective financial decisions. If you’re a business owner looking to secure a loan, don’t go it alone. Leverage a broker’s expertise, connections, and negotiating power to set your business up for long-term success. The right loan can take your business to the next level. The right broker can get you there.

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One of the most significant ways the SBA supports businesses is through its loan programs. These programs help business owners obtain funding with favorable terms, making it easier for them to start, grow, or sustain their operations. Understanding the purpose of each program can help ensure that your business secures the necessary funding with agreeable terms. Below are some of the key loan programs the SBA offers:

1. SBA 7(a) Loan Program
The SBA 7(a) loan is the most popular and flexible loan program, designed to help small businesses with a variety of financial needs, including working capital, inventory, business acquisitions, equipment, real estate, and debt refinancing. Key features include:

• Loan amounts up to $5 million
• Long repayment terms (up to 25 years for real estate and 10 years for other uses)
• Competitive interest rates
• SBA guarantees up to 85% of loans under $150,000 and 75% of loans over that amount

2. SBA 504 Loan Program
The SBA 504 loan program is specifically designed for businesses looking to purchase fixed, major assets such as real estate, buildings, and large equipment. It provides long-term, fixed-rate financing and is structured with three parts:

• A private lender covers 50% of the loan
• A Certified Development Company (CDC), backed by the SBA, provides 40%
• The borrower contributes 10%
• Funding up to $15 million

3. SBA Express Loan Program
The SBA Express Loan program is designed for businesses that need smaller amounts of capital quickly. Unlike traditional SBA loans, Express loans feature an accelerated approval process:

• Loan amounts up to $500,000
• SBA guarantee of 50%
• Faster processing times, typically within 36 hours
• Can be used for various business purposes, including working capital and equipment purchases

4. SBA Microloan Program
The SBA Microloan program is tailored for small businesses and startups that need smaller amounts of funding:

• Loan amounts up to $50,000 with an average loan size of about $13,000
• Typically used for working capital, inventory, or equipment
• Loan terms of up to six years.
• These loans are administered through nonprofit lenders that also provide business training and technical assistance.

5. SBA CAPLines Program

The SBA CAPLines program is designed to help businesses meet short-term and cyclical working capital needs. It includes four types of credit lines:

• Seasonal CAPLine: Helps businesses with seasonal fluctuations
• Contract CAPLine: Finances contract-related costs
• Builders CAPLine: Provides funding for construction or renovation
• Working CAPLine: Revolving credit similar to a traditional line of credit

6. SBA Disaster Loans
For businesses affected by natural disasters, the SBA offers low-interest disaster loans to help rebuild and recover. These loans can be used for repairs, operational costs, and coverage for uninsured losses.

Final Thoughts
The SBA provides invaluable resources to small businesses by offering accessible and affordable financing options. Whether you need funding to start a business, purchase equipment, or recover from a disaster, there is an SBA loan program designed to meet your needs. If you’re considering applying for an SBA loan, working with an approved lender like Preferred Capital Funding can help streamline the process and improve your chances of securing the right funding for your business. To learn more about the different SBA programs or to start your application for an SBA loan, click HERE to view our SBA programs, call PCF at (770) 648-8100, or email us at apps@pcfunding.com.

The post Making Sense of the Small Business Administration: Which SBA Loan Program Can Best Support My Business? appeared first on Preferred Capital Funding.

A Market at a Crossroads

EV adoption has been growing steadily, but market complexities have introduced new challenges. In 2023, GM reduced its EV production goals, citing slower-than-expected growth. Despite this, the company has continued to invest in EV development, expecting to produce and sell around 200,000 EVs in 2024. Similarly, other automakers like Ford and Tesla have experienced fluctuating market share, with Tesla’s U.S. dominance declining from 58% in Q4 2022 to 44% in Q4 2024.

Charging infrastructure is also expanding, with the U.S. Energy Information Administration reporting a 7.4% year-over-year increase in charging locations, reaching 70,841 nationwide in November 2024. However, determining the appropriate number and placement of chargers remains a key question for CRE stakeholders. Moreover, the rise of self-driving EV taxis could concentrate charging demand in certain areas, reducing the need for chargers at multifamily and office properties.

The Case for EV Charging in CRE

Despite market fluctuations, EV adoption continues to progress, making charging infrastructure a strategic investment for property owners. A NAIOP webinar highlighted the benefits of installing EV chargers, including tenant attraction and retention, improved environmental scores, and new revenue streams. Additionally, more affordable EV options are entering the market, with at least 10 models now available for under $40,000. This affordability, coupled with automakers’ long-term commitment to EVs, is expected to drive increased adoption.

Understanding Charging Needs

Successful EV charging implementation requires a tailored approach based on specific use cases. Key considerations include:

• Vehicle Types & Users: Identifying whether chargers will serve residents, employees, or the general public.
• Charging Speed: Level 1 chargers offer slow overnight charging, Level 2 chargers take 8-13 hours, and Level 3 DC fast chargers provide a full charge in about 20 minutes.
• Dwell Time: A hotel parking lot may only need Level 2 chargers, while retail centers might benefit from fast-charging options for shoppers with limited time.
• Smart Features: Payment capabilities, data collection for sustainability tracking, and network connectivity enhance functionality and revenue potential.

Site & Business Considerations

Beyond user needs, site logistics play a crucial role in EV charger placement. Property owners must assess electrical capacity, accessibility, flood risks, and visibility. In terms of business models, developers can either lease space to charging network operators—who handle installation and maintenance—or invest in their own infrastructure, allowing greater control over pricing and customer engagement.

Funding & Incentives

Federal and state programs provide significant financial support for EV infrastructure. The Infrastructure Investment and Jobs Act includes $5 billion for a national fast-charging network and $2.5 billion in grants for local infrastructure projects. Developers can leverage these funds to offset installation costs and enhance project viability.

The Road Ahead

While EV adoption trends have shifted, investing in charging infrastructure remains a smart long-term strategy for CRE stakeholders. As sustainability goals become increasingly important for tenants and investors, properties equipped with EV chargers stand out in a competitive market. By carefully assessing demand, selecting the right business model, and utilizing available incentives, property owners can position themselves for success in the evolving EV landscape.

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Former Georgia Senator Kelly Loeffler, President Donald Trump’s nominee to lead the Small Business Administration (SBA), presented her vision during a Senate Small Business Committee hearing. She outlined plans to cut bureaucracy, restore accountability, and prioritize disaster relief “from North Carolina to California to Hawaii.” Loeffler’s confirmation hearing was largely uneventful compared to those of other more divisive candidates seeking to join Trump’s administration, and her appointment is expected to pass. If confirmed, she plans to revitalize the SBA into a metrics-driven agency, ensuring financial support reaches small businesses efficiently while reinforcing economic growth and accountability.

Raised on a family farm in Illinois and the first of her family to graduate from college, Loeffler played a key role in growing a startup into a Fortune 500 company. Loeffler co-owned the Atlanta Dream WNBA team and was the founding CEO of financial technology company Bakkt. Loeffler believes her background as a fourth-generation family farmer turned accomplished businesswoman and congresswoman makes her the ideal candidate for the role, claiming that “small business is in [her] DNA.” If confirmed, Loeffler pledged to donate her $207,500 annual federal salary to charity, as she did with her Senate salary from 2019 to 2021, distributing the $174,000 per year to over 40 Georgia charities and nonprofits. Her estimated net worth is around $1 billion.

Loeffler emphasized streamlining the agency while bringing it up to date. “We’ll cut red tape and modernize the agency while restoring the accountability and transparency that taxpayers deserve,” she wrote. “I will crack down on fraud, with a zero-tolerance policy, while shifting SBA’s focus from Washington D.C. back to Main Streets across America.” She also stressed the SBA’s role in economic growth. “Each taxpayer dollar entrusted to SBA should have an economic multiplier effect—delivering productive capital to grow manufacturing, strengthen rural communities, create jobs, and develop critical technology like AI and chips. I believe we must continue to empower entrepreneurs from all walks of life, including women and veterans.” Loeffler aims to enhance SBA technology, improve staff training, and implement a metrics-driven approach to decision-making. “I think what small businesses want to know is that there are people at this agency that understand their challenges,” she said. “We want to be part of the solution, not the problem.” She also highlighted concerns about the 7(a) loan program, calling it “the bread-and-butter loans that small businesses use to start.”

If you’re considering an SBA loan, start by assessing your business needs. With the right preparation and support from an SBA-approved, PCF loan officer, you can secure the financing you need to elevate your business. Call Preferred Capital Funding at (770) 648-8100 to learn more or CLICK HERE to review our SBA programs.

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What is SBA 7(a) Financing?
The SBA 7(a) loan program is the SBA’s primary and most popular financing option for small businesses. It provides financial assistance to businesses that may not qualify for traditional bank loans. The maximum loan amount under the SBA 7(a) program is $5 million, making it a versatile option for both startups and established businesses. These loans are partially guaranteed by the SBA, which reduces the risk for lenders and makes it easier for small businesses to access the funds they need.

SBA 7(a) loans can be used for a wide range of purposes, including:
•    Purchasing real estate
•    Buying equipment or inventory
•    Working capital
•    Refinancing existing debt
•    Business acquisitions

Key Benefits of SBA 7(a) Loans:
•    Lower Down Payments: SBA 7(a) loans often require lower down payments compared to traditional loans, making them more accessible for small business owners.
•    Longer Repayment Terms: With repayment terms of up to 25 years for real estate and 10 years for equipment or working capital, SBA 7(a) loans provide manageable monthly payments.
•    Competitive Interest Rates: Interest rates for SBA 7(a) loans are generally lower than those for conventional loans, making them an affordable financing option.
•    Flexible Use of Funds: Unlike some loan programs with strict limitations, SBA 7(a) loans can be used for a wide variety of business purposes.

Want to learn more about how an SBA 7(a) loan can benefit you?
SBA 7(a) financing can be a game-changer for small businesses looking for affordable and flexible funding options. With competitive rates, longer repayment terms, and various loan types to suit different needs, this loan program is a valuable tool for entrepreneurs. However, it’s essential to understand the requirements and application process to increase your chances of approval. That’s where Preferred Capital Funding can help! If you’re considering an SBA 7(a) loan, start by assessing your business needs. With the right preparation and support from an SBA-approved, PCF loan officer, you can secure the financing you need to elevate your business. Call Preferred Capital Funding at (770) 648-8100 to learn more or CLICK HERE to review our SBA 7(a) program.

The post A Guide to SBA 7(a) Financing: Get the Funds You Need to Succeed appeared first on Preferred Capital Funding.

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If you own a small business, the Section 179 deduction is one of the most important tax codes you need to be familiar with in 2024. If you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Section 179 is good for the companies that use the deduction to buy needed equipment, it’s good for the equipment manufacturers who they buy from, and it’s good for the overall economy. The program lets you deduct all or part of the cost of equipment that is purchased or financed and put into place before December 31, 2024. That’s cash you keep instead of sending to the IRS. It’s a good idea to become familiar with this tax incentive so you can plan for your company’s future as it relates to capital equipment purchases. Preferred Capital can help with those equipment acquisition needs!

Section 179 Details

2024 Deduction Limit = $1,220,000 – All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2024 should qualify for the Section 179 Deduction (assuming they spend less than $4,270,000). This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2024, the equipment must be financed or purchased and put into service between January 1, 2024 and the end of the day on December 31, 2024.

2024 Spending Cap on equipment purchases = $3,050,000 – This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $4,270,000 on equipment won’t get the full deduction.)

Bonus Depreciation: 60% for 2024 – Bonus Depreciation is offered some years, and some years it isn’t. Right now in 2024, it’s being offered. Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. In a switch from recent years, Bonus Depreciation is now available for both new and used equipment. Bonus Depreciation is useful to large businesses spending more than the Section 179 Spending Cap. Businesses with a net loss are still qualified to deduct some of the cost of new equipment and carry forward the loss to future years.

Section 179’s “More Than 50 Percent Business-Use” Requirement – The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179. See HERE for current limits on business vehicles.

Sign Your Support to Keep Section 179 Strong

We know nothing is permanent in Washington, so it’s important we stay vigilant. We’ll always keep you updated on all Section 179 developments and strive to remind Congress of our unity towards a business-friendly tax code and robust Section 179 deduction. Use the form HERE to sign your support for Section 179. Adding your name to our growing roster of business professionals helps support the cause and keeps Section 179 strong in 2025 and beyond.

For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read the entire Section 179 website carefully HERE. Call Preferred Capital Funding at (770) 648-8100 for your equipment acquisition needs and secure your deduction before the end of the year.

The post Have You Purchased or Do You Plan on Purchasing Equipment for Your Business in 2024? Time is Running Out for You to Secure Your Section 179 Deduction appeared first on Preferred Capital Funding.

The Green Loan Program allows business owners to qualify for additional CDC/504 financing when they meet energy efficiency requirements. The second mortgage limit is increased to a maximum of $5.5 million per project with no limit on the first mortgage amount, essentially removing the limit on the total project cost by bypassing traditional SBA lending caps. There is also no limit to the number of CDC/504 loans a business can take out or the aggregate dollar amount outstanding when energy efficiencies are implemented. This means that a business owner with an existing $5 million SBA 7(a) loan or a CDC/504 loan could still be eligible for another CDC/504 loan to purchase a building. To qualify, the business owner must simply implement initiatives like installing solar panels, LED lighting systems, energy-efficient windows, or optimized heating and cooling systems.

The program is not without specifications. Eligible businesses must either produce or reduce energy to meet set energy requirements. To reduce energy, the business must replace an existing location where the energy used at the new location will be at least 10% lower than that of the current location. Note that the 10% reduction pertains specifically to energy consumption, not merely a decrease in utility costs. For energy production, the business can either replace an existing location or open an additional location. The business would need to produce at least 15% of the building’s energy needs with project improvements. Possible approaches to reach these goals include investing in energy-efficient building design, integrating renewable energy sources, retrofitting existing buildings to improve energy efficiency, and conducting energy audits and certifications to identify energy shortfalls.

Debating whether to incorporate sustainability into your business strategy is no longer an option as more and more people are choosing to support organizations that espouse sustainability and business practices that minimize environmental impact. The Green Loan Program is rewarding business owners that value environmental stewardship with a healthier planet and more economic opportunities. If you’d like to hear more about the SBA 504 Green Loan Program and how it can benefit your business, Preferred Capital Funding guarantees a knowledgeable and proactive broker who is dedicated to helping nature and businesses thrive. The environment and your wallet stand to gain.

The post It Pays to Go Green: SBA 504 Lending Limits Expanded for Real Estate Projects that Incorporate Green Energy Initiatives appeared first on Preferred Capital Funding.

Blackstone, a New York-based company, purchased the motel chain from French multinational hospitality company Accor in 2012 for $1.9 billion. Blackstone’s sale of Motel 6 and Studio 6 comes as the U.S. hotel industry continues to recover post-pandemic, as federal data shows that in 2024, almost 200,000 fewer people work in hotels and other lodging than before the pandemic. The U.S. economy hotel sector also faces flat-lining occupancy and stagnant room rates. However, hospitality industry experts predict that the outlook will improve in 2025. G6 Hospitality runs nearly 1,500 economy lodging locations under the iconic Motel 6 and Studio 6 Extended Stay brands in the United States and Canada. The transaction to acquire these budget hotel chains will be done entirely in cash and is expected to close in the fourth quarter of this year. Motel 6 will continue to operate as a separate entity.

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