SBA Loans

Low rates: interest rates are capped

Low down: down payments start at just 10%

Versatile: get an SBA loan for most expenses

Fixed and variable rates are available

SBA Loans

Lending Overview

The U.S. Small Business Administration supports local economies and job growth. To do that, they work with lenders to offer low-cost loans to small businesses. The SBA acts like a guarantor on loans for real estate, equipment, construction, and more to reduce lender risk. Reduced lender risk means more benefits for businesses seeking financing. The SBA’s two main loan offerings are the SBA 7a and the SBA 504 loans. Both can cover the costs of real estate, equipment, refinancing, and other projects, but only the 7a provides working capital. Which one you choose will depend on the structure of your business and what you’ll be applying the funds toward. To qualify as a small business, your company must have less than $5M in net annual revenue and less than $15M in net worth. Some types of businesses aren’t eligible, so make sure to check with a broker before applying.

The Funding Lane

How to Effectively Apply Funds

SBA loans are for small businesses that have been unable to secure funding through other lenders. This makes them ideal for young companies and those with bad credit. Where other lenders aren’t willing to take a risk on these businesses, SBA-backed loans are different. You can use one to buy a business and take over its real estate, buy and renovate property, bring in new technology and equipment, or get funding for an important project. Fixed and variable rate options are available and interest rates are capped by the government. SBA loans have a minimum 10% down payment, which can save you money on your initial investment.

Real Estate

SBA loans help small businesses buy property. Get an owner-occupied loan, a business buyout loan, or funding for renovations. SBA 7a loans let you roll working capital into a real estate loan so you can handle repairs and other expenses. Find out how to qualify for SBA loans through your broker.

Equipment

The cost of equipment deters many small businesses from getting what they need to get ahead. An SBA equipment loan cuts the upfront costs of equipment into manageable payments so you can grow. Low minimums make it even easier to get the equipment you need. Ask us for more information.

Working Capital

The SBA 7a provides working capital to small businesses that can’t get it from their bank or credit union. They provide the means to cover short-term expenses and cover gaps in revenue. If your business is experiencing restricted cash flow, speak with our professional brokers about an SBA loan today.

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FAQ’s

We believe that the more you know, the better the decisions you make. And in the financing world, better decisions mean lower rates, better terms, and increased profitability.

These FAQs are only the start. Our team is here to answer all of your questions and support you in finding the best financing solution for your unique scenario.

Q. How much will an SBA loan give you?
If you qualify, you may get $5M or more from an SBA loan. The amount will depend on your business, your needs, and your personal financial health. Talk with a broker to get matched with the loan that’s right for you.
Q. Does my business qualify as “small”?
Qualifying as a small business depends a lot on the industry you’re in. For most cases, if you have $5M or less in net annual revenue and $15M or less in net worth, you qualify as “small.” In some cases, the number and type of employees in your company makes a difference too. To get all the details on qualifying for an SBA loan, speak with a professional broker.
Q. What credit score do I need for an SBA loan?
Both your personal and business scores are needed to qualify for an SBA loan. Typically, you’ll need a personal score of 620 or higher and a FICO SBSS score of 140 and above. If you don’t have enough credit for an SBA loan, our brokers can help you boost your scores and find alternative loans.
Q. What are the disadvantages of an SBA loan?
Since SBA loans are backed by the federal government, certain types of businesses aren’t eligible. Additionally, if stakeholders in the company have any delinquent federal debt like student loans or tax payments, the business won’t qualify. Work with a broker to find out if your business qualifies before you apply.
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Get Funded

The funding process starts with a short 3 minute online application. Our team will then review your needs and quickly provide you with a custom funding proposal that targets your desired financing types, rates, and terms.