Frequently Asked SBA Lending Questions
Finding the perfect financing for your small business is critical. When researching SBA financing options, you may have questions. Below are frequently asked questions by our customers.
What are the advantages of an SBA loan?
There are many advantages of SBA lending. It allows small business loan options that offer a streamlined loan application, flexibility, longer terms, and lower down payments compared to other types of business financing.
What are the credit requirements for an SBA loan?
A loan applicant must show an ability to repay the loan in a timely manner, through past earnings records or future earnings projections, the ability and commitment necessary for a successful operation, and adequate collateral. Additionally, the applicant must also have sufficient equity capital so that, with the SBA loan, the business can operate on a sound financial basis.
Who is eligible for an SBA loan?
There are different SBA loan options for various types of business owners. All businesses must be for profit.
How do I apply for an SBA loan?
Call our SBA Lenders directly toll-free at 888.749.2435 or send us an email and we will begin to gather all the documents required and walk you through the process. Get started by filling out our SBA online application.
What type of information do I need to provide to receive the most appropriate loan financing?
Reflect on the scope of your business and the needs around your financing, and notate information for the following:
- The size loan needed
- How the loan will be used
- How long of a term (in years) are you requesting on the loan
- If you are proposing to purchase real estate or an existing business, provide a copy of the purchase agreement (signed by both buyer and seller)
- Indicate the amount and sources of the equity (for example, cash) to be injected into the business or project
- Provide copies of any notes to be refinanced with the loan
What information is needed about the company or the owner?
We will need a brief history and description of your business, including information such as when the business started, who founded the business, the products and/or services offered, how the business has grown or changed, number of employees, and competitors. Additionally, we will need the following information, specific to the business:
- Legal name of the business
- Street address of the business
- Business telephone number
- Employer tax ID number
We will also need business owner information, including: name, home address, Social Security number, percentage of ownership for any person having any ownership interest in the business, and a resume for each owner, describing their educational and business background.
What type of financial information is needed?
You need the following financial information and documentation:
- Three years of business tax returns (or since the start-up business began)
- Personal or individual tax returns
- A current personal financial statement
- A statement of personal history
- Schedule of outstanding debt
- A breakdown of project costs detailing how the loan proceeds will be used