Secrets to getting approved for your small business loan.
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An SBA Loan is a term loan program designed by the Small Business Administration to help business owners secure long term financing. It’s important to understand that even though the program is designed by the Small Business Administration, they are not the lenders that are lending the money. This is usually misconstrued by business owners, but the lenders that provide the money for the SBA Loan are the ones that determine eligibility, rates, terms, etc…
SBA Loan sizes range from $50,000 to $10,000,000, with terms from 10 to 25 years, and interest rates between 5.25% and 7.75%. In order to qualify for an SBA loan a business must have strong operating history, collateral available to secure the loan, and good personal credit. SBA Loan programs have a document intensive process, but has a dramatically positive impact on businesses once closed.
Time in business must be above 2 years
Business owner's personal credit score must be above 650
U.S. based and owned by US citizen or Lawful Permanent Resident who is at least 21-years old
No outstanding tax liens
No bankruptcies or foreclosures in the past 3 years
No recent charge-offs or settlements
Current government-related loans
The SBA Loan application process is paperwork intensive so it’s always important to make sure that when you plan to apply, you are organized and have all of your financial information together. The SBA Loan process is known for being strenuous, but the extra work up front for a better solution will improve the business for the next 10 to 25 years!
SMB Compass's simple and secure online loan application can be completed in a matter of minutes. Quick & Easy!
After we process your application we will contact you and provide you with the best loan offer.
Once your loan is approved in as little as 30 days. You will have capital deposited directly to your business bank account.
SBA Loans can be used for all industries except for industries related to gambling, lending, religious institutions, speculative-based industries, non profits, illegal practices, and government owned businesses. Any business with strong operating history, good credit, and eligible collateral should consider an SBA Loan as an option for their business.
There are a many reasons why a business owner would apply for an SBA Loan. The top reasons to apply for an SBA Loan include;
The great thing about an SBA Loan is not only can you use it for one of the above reasons, you can also you the one loan for multiple reasons.
We recently worked with a Logistics and Transportation company located in Northern Florida that had been operating for over 12 years. As they were growing and adding trucks to their fleet they were utilizing 5 year truck financing programs and hiring new employees to keep up with the demand. The total monthly payment on the trucks were $28,000 per month and the short term notes used to keep up with payroll added another $8,500 of monthly payments. Using a 10 year SBA Loan we were able to refinance the debt and reduce the monthly payments from $36,500 to $10,800. The business now has over $300,000 a year in additional cash flow.
If you’ve been in business at least one year, have at least $100,000 in annual revenue, and have a personal credit score of at least 600, you are eligible.
We use a number of different data points to instantly provide you with the best possible loan offer, including competitive rates and payment terms that work for you and your business.