What is an SBA Loan?
A Small Business Administration Loan (“SBA Loan”) is a small business loan program administered by the Small Business Administration and is partially guaranteed by the government. This program works with other financial institutions to help give small businesses access to working capital that has longer terms and lower interest rates. Most businesses seeking working capital to purchase inventory, operate or expand a business can benefit from a SBA Loan.
Which business is ideal for this type of small business financing?
Many companies have business needs such as expanding in technology or location, payroll needs, new marketing endeavors, which require access to working capital that have longer terms and lower interest rates. SBA Loan amounts typically range from $500 to $5.5 million dollars upon approval. Due to the fact that an SBA Loan is partially guaranteed by the government, it helps reduce the lender’s risks, which allows for the lower rates and longer terms.
SBA Working Capital loans are a great option for entrepreneurs who need funds for business operating expenses. These loans fall under the category of SBA 7(a) loans and offer advantages specifically for small business owners seeking less than $150,000.
With rates between 5-8% and terms between 5-25 years (depending on program and loan uses) refinancing debt through SBA loans offers affordable lending solutions for small and growing firms.
SBA 7(a) Loans can be a great solution for financing long-term equipment. SBA International Trade loans can be used for fixed assets for construction, building, and real estate equipment for export transactions.
Commercial Real Estate
SBA 504 loans offer commercial real estate financing for owner-occupied properties. These loans require only a 10 percent down payment by the small business owner and funding amounts range from $125,000 to $20 million
Loan amount from $5,000 to $2,000,000
SBA Loan Details
Government-backed and offer lower APRs and longer repayment periods
SBA programs offer both small and large funding amounts for optimal coverage
Businesses denied could qualify
With large loan amounts and low SBA loan rates, these small business loans can be ideal for growth initiatives.
SBA loan applications are more strict and time-consuming than applications for other term loans or working capital products.
The borrower may be required to make a down payment
Collateral may be required and low-credit applicants may not be approved.
Time to receive funds is slower which means that SBA financing may not be a good fit for certain business needs.
650+ personal credit score
2+ years in business
The business owner must be a U.S. citizen or legal permanent resident
Must not have outstanding tax liens
No bankruptcies or foreclosures in the last 3 years
Signed one page funding application
Business mortgage statement (if you own); business lease agreement (if you rent)
3-5 most recent business bank statements
Business tax return (not all cases)
How To Apply
To get prequalified, follow the "Apply Now" button and submit some basic business information.
After your submission has been processed by the underwriting team, we will reach out to discuss the options you qualify for.
Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.