SBA Loan

What is an SBA loan?

Offered by the Small business Administration, an SBA loan is basically government-funded small-business funding that can be used to primarily cover costs incurred with startups, real estate acquisitions, and expansions. Since this loan is backed by the federal government, there is much less risk and hurdles for small businesses looking to obtain this type of funding. SBA loan rates and fees are similar to non-guaranteed loans.

Top 5 Benefits

Government backed
Simple application process
Used for most business purposes
Low interest rates
Flexible Repayment Terms

SBA Loan Qualifications

Time in business 3 months (Minimum)

Monthly Revenue $5k (Minimum)

Business Bank Account (Required)

No Minimum Credit Score Required

Basic points to consider when applying for an SBA loan

It’s ironic, that while an SBA focused on funding small businesses, it can be challenging to receive aid from the Small Business Administration. Basically, banks tend to be cautious when it comes to lending to unproven entities. For this reason, you should be aware of the potential hurdles when applying for SBA assistance from these traditional financial institutions.

Low Credit Score: Borrowers are usually required to have a FICO score above 650.
Good credit & cash flow: The ability to generate a consistent cash flow and pay bills on time.
Business Documentation: Being organized with business documents and background materials.