Its APRs range from 5. To qualify, your business must be in one of the 17 industries the bank funds, which includes accounting and tax firms, automotive, family entertainment, funeral service, government contracting, insurance and senior care. You can read more in our Live Oak Bank review. Your chances of being approved are greater if your personal and business finances are in good shape. If your business is struggling, an SBA loan is probably out of the question. Applying for an SBA loan is a time-consuming process that might take your focus away from running your company.
So for some small-business owners, especially those just starting out, it might not be worth the hassle. At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. Our opinions are our own. Funds for working capital, expansion, equipment purchases.
Can My Business Qualify for an SBA Loan? - iSource Capital
Processed through banks, credit unions, specialized lenders. Funds for buying land, machinery, facilities. Processed through private-sector lenders and nonprofits.
Funds for working capital, inventory, equipment, starting a business. Processed through community-based nonprofits.
Funds for small-business owners affected by natural disasters and other emergencies. Processed through the SBA. Apply now at SmartBiz. Before you apply for a SmartBiz loan, find out whether you meet the lender's minimum qualifications. In some cases, all you need money for is new equipment or a new retail space.
Not only that, but repayment plans can go for up to 25 years. These loans can be repaid for up to six years. As a small business owner, you should be enthusiastic about securing one of these loans. However, because they are so desirable, you will have to fulfil a variety of qualifications to obtain one. Instead, you need to contact your bank or financial institution and ask for a loan.
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- SBA Loans for Your Startup.
If they want additional security to avoid risk, they will apply for SBA protections on your behalf. When applying for one of these loans, you will likely have to produce a variety of documents related to your business. You should have all of these ready to go already since most traditional lenders need them as well. Be sure to contact one of our brokers today to find out more and see how you can qualify for an SBA loan.
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When other avenues to getting new business funding are closed, a Small Business Administration SBA loan could be the way to securing the funds you need. However, just as is the case with any other element of your business-planning process, you should have an idea of how long it might take to complete the process of securing this type of loan.
1. The SBA guarantee doesn't pay off your loan.
Applying for an SBA loan is a common course of action for an applicant who has been denied by a bank for a business loan. The Small Business Administration provides a guarantee for qualified business owners both startups and existing companies. The guarantee improves the business owner's chance of approval with a bank. To apply for an SBA loan you must fill out an application, write a full business plan, generate financial statements proving a sufficient estimated cash flow and submit to a thorough credit check.
Getting a SBA Home or Personal Property Loan After a Natural Disaster
You must also gather a long list of paperwork regarding the owners, including resumes, business licenses and a personal background statement. The SBA and lender also evaluate the application based on your character, management abilities, collateral and amount you can contribute to the business.
The exact time it will take to close an SBA loan varies by case. For instance, one factor is how long it will take you to complete your well-researched business plan or financials that could take several weeks or even months.
Another factor is how long it takes you to gather all of the paperwork proving your financial status.