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Companies in the poultry industry have excelled in recent years. Chicken consumption has more than doubled in the past three years, while the consumption of red meat continues to decline. The poultry industry has done an excellent job conveying that chicken is exceptionally healthy and a better choice than beef.
An SBA loan can help get your poultry business off the ground. It can be used to purchase vehicles buy equipment and supplies, refinance debt, or even purchase a competitor’s poultry company.
Benefits of owning a poultry company
The biggest benefit of owning a poultry company is the independence. Many people who own a poultry company learned the business by working for a large local or national poultry company. However, they saw they could earn more by being independent and building their own business.
The earnings for a poultry industry professional typically range between $30,000 and $50,000 per year. In addition, many poultry industry professionals use their companies to pay for benefits, like health, life, disability insurance, and other benefits.
How to obtain financing to open, expand, or buy a poultry company
If you’re looking for poultry company financing, consider applying for an SBA loan. The various loan programs offered by the Small Business Administration can help provide the funding you need to set up your business.
The SBA is a government agency that doesn’t lend you the money directly. Instead, it guarantees a significant portion of your loan. That lowers the risk profile for SBA’s lending partners, which include conventional banks and financial institutions, so they’re more willing to approve loan requests.
You also must put significantly less cash or equity down to qualify with an SBA loan. And, with an SBA loan, no covenants or collateral is required.
The most common SBA poultry industry loans include the SBA 7(a) and Express loans.
SBA 7(a) loan for starting or buying a poultry company
The 7(a) is the preferred SBA loan for poultry industry professionals. You can use the funds made available through this program to purchase property, expand your office, open a new office, or even purchase a competitor’s company.
If you own an existing poultry company and want to buy out a partner, you can utilize the funds from an SBA 7(a) loan for that purpose.
The maximum SBA loan for a poultry company is $5 million. These term loans are generally repaid with monthly payments that include interest.
The payment stays the same for fixed-rate loans since the interest rate is locked in. However, for variable rate loans, it’s up to the lender to request a different payment amount if the interest rate changes.
SBA Express Loans for poultry companies
SBA Express Loans are a part of the agency’s 7(a) loan program. Up to $500,000 can be borrowed under an Express loan. The approval times are typically much faster for these loans.
Express loans over $25,000 have a collateral requirement. The SBA usually responds to Express loan applications within 36 hours.
The lenders ultimately make all eligibility and credit decisions. The market prime rate plus 4.5-6% interest is applied with repayment terms of up to 10 years.
How to apply for an SBA poultry industry loan
Access our network of SBA lenders that includes leading nationwide banks, credit unions, and other financial institutions. Our lending partners are experienced in handling applications for poultry companies, so they will diligently pursue your opportunity.
There are countless SBA approved lenders that are ready to offer you a poultry industry SBA loan. These are just some of the top lenders:
| Rank | Bank | City | State | # of Loans | Avg Loan $ | Avg Interest |
|---|---|---|---|---|---|---|
| 1 | First Financial Bank | El Dorado | AR | 104 | $946,898 | 5.2% |
| 2 | Metro City Bank | Doraville | GA | 23 | $2,074,652 | 4.5% |
| 3 | Live Oak | Wilmington | NC | 22 | $1,953,143 | 5.7% |
| 4 | PromiseOne Bank | Duluth | GA | 14 | $978,929 | 5.0% |
| 5 | BankPlus | Belzoni | MS | 9 | $2,074,422 | 4.3% |
| 6 | BankFirst Financial Services | Columbus | MS | 8 | $1,260,263 | 4.0% |
| 7 | First State Bank Nebraska | Lincoln | NE | 7 | $959,214 | 3.8% |
| 8 | Trustmark National Bank | Jackson | MS | 7 | $746,043 | 4.5% |