SBA Loans

Women at her retail store

What is an SBA loan?

The US Small Business Administration (SBA) has loan programs for small business owners unable to obtain a conventional loan or other terms that meet their needs.  Lending institutions provide the loans.

What is the difference between the different types of SBA loans?

Financing through the SBA 7a program is available for many different kinds of business projects including building purchases, financing the leasehold or build-out of a business, or  obtain working capital.   SBA 504 program includes building, construction, renovation, and machinery purchases.

How do I know if I qualify for an SBA loan?

First, your business must be existing and on-going for-profit business that cannot have a net worth that exceeds $15 million or average net income greater than $5 million over the past two years.  Other requirements apply and will be covered later in the process.

How does an SBA 7a loan financing work?

SBA 7a loans are similar to other bank loans because you apply directly with a bank or preferred SBA lender.  SBA or the lender may make the credit decision.  The lender then provides the loan funds with the guaranty from the SBA on the loan.  Lenders will take a security interest in business assets or mortgage on real estate for collateral.

How does an SBA 504 loan financing work?

SBA 504 is two loans - lender provides 50% while the SBA provides 40%.  Loan recipient is responsible for 10% of funds.  The Lender and SBA will hold the first mortgage on real estate or security interest in other assets.

How do I apply?

Speak to us for a consultation on the most appropriate SBA approved lender for your situation.