A Primer on SBA Loans

The U.S. Small Business Administration helps small business owners obtain funding by guaranteeing a substantial portion of the principal amount of loans issued by lenders (mostly banks). Because there are six SBA loan programs and several loan subcategories, choosing the appropriate SBA loan for your business can get complicated. We will assist you in choosing an SBA loan that best suits the needs of your business. The most popular SBA loan programs allow you to borrow money for nearly any business purpose, including a source of working capital, the purchase of inventory, supplies or equipment, the refinance of debt, the purchase or repair of real estate or the purchase or expansion of a business. Most privately-owned businesses, including partnerships, corporations, limited liability companies and sole proprietorships, fall within the government’s definition of a “small business.” But the definition is inexact and depends on several factors, including the type of industry or sub-industry, the amount of annual gross revenues and the number of employees of the business. The following are the two main guidelines:

• A maximum of 250 to 1,500 employees, and as few as none
• Between $750,000 to $38.5 million of annual gross revenues

We will help you determine the guidelines for your business’s industry or sub-industry.

These are the most popular SBA loans:

• SBA 7(a) Program
• SBA 7(a) Express Program
• SBA 7(a) Startups Program
• SBA Export Program
• SBA CDC/504 Program
• What SBA Loan Documents Are Required?
• What Are Some of the Standard SBA Loan Fees?

There are many large and local banks that offer SBA loans. These lending banks have underwriters that can be difficult to work with and will scrutinize the financial details of your business. Therefore, it is wise to use a company like ours to streamline the process by pre-underwriting all submissions BEFORE they are provided to the underwriter. If a document is presented incorrectly or in the improper format, at a minimum, it will cost you delays and, at worst, could even result in an instant denial of your loan.