Funding Amount
$100,000 to $5,000,000
Payment Terms
10-25 years
You Get Funds
2 weeks - 1 month average
What is a SBA Loan?
The United States Small Business Administration, also known as the SBA, is a government agency that helps make it easier for small businesses and entrepreneurs to receive the loans they need to start, grow, or keep their business in functioning order. While the SBA does not lend out the loans themselves, it does establish guidelines for loans made by partnering lenders, micro-lending institutions, and community development organizations. The SBA provides competitive terms, gives counseling education, and acts as a guarantee that a partial payment will always be made on your loan when unexpected financial situations arise.
The Advantage Of This?
You receive peace of mind that your loan repayments are not going to default and it provides the lender with additional security. Not only does this make it easier for financial institutions to lend out loans due to less risk involved, but it also means that you may qualify for a higher loan amount.
Why Choose a SBA Loan?
The primary benefit of choosing a SBA loan is the guarantee that if your financial situation changes, your bill payments will be paid. While you will need to contact your lender to explain your situation, the SBA will cover a portion of your payment up to a certain amount.
Another benefit of choosing a SBA loan is that you are far more likely to get approved, as SBA-backed loans have built-in mitigated risk. The lender knows that there is a guarantee in place and they will receive an agreed-upon repayment by the bill due date, even if you cannot make the payment.
Finally, a SBA loan ensures that you will not take on any additional fees or penalties if you cannot make a payment. When this is combined with lower down payments, flexible overhead requirements, no collateral (for some loans), and continued counseling and education support, a SBA loan is a valuable tool in funding your business.
What Criteria Is Needed to Qualify?
There are a few points of criteria that you will need to meet to be successfully approved for a SBA Loan.
Credit Score
620+
Time In Business
2 years+
Monthly Revenue
$10,000 minimum
How Quickly Do You Get Funds From a SBA Approval?
With SBA loans, the approval process and time that goes into documentation is much longer than other types of loans. This is due to the nature of the guarantee that a SBA loan provides the lender and the borrower, so certain criteria must be looked into and met. Most applicants will receive their funding in 2-weeks to a 1-month on average.
What Are The Payment Terms?
Unlike other lending types, SBA loans have much longer payment terms. Repayments are made over 10-25-year terms. The actual repayment term that you receive when you are approved is determined by the amount of money that is being borrowed and how much revenue your business earns every month.
Helping Small Businesses Access Affordable Financing Solutions.
