SBA Loans, SBA Financing

Whether you’re an existing business or a start-up, Small Business Administration (SBA) lending may be an option for you. Ninety percent of small businesses in the US meet the requirements for an SBA loan. Many times, SBA loans can be the best source for start-up businesses or new franchises businesses.

Common misconceptions about SBA Loans are that they should only be used as a last resort and they are for business owners with bad credit. Since an SBA loan is guaranteed (up to 80%) by the SBA, there can be a tremendous amount of scrutiny placed on these applications. Another misconception is that they take months upon months to fund. This is not the case if you submit a properly researched and professionally prepared loan package.

This is where Strategic Business Funding steps in to assist our clients. The SBA process can be quite cumbersome and intimidating if you are new to the arena. Our service assists you in packaging a professional loan application that has the best chance to be approved.

For a free consultation or to learn more about SBA loans simply fill our Fast Form today!

Want a few SBA Quick Facts? Check out the bullets below.

Loan amount: We work with loan requests of $100,000 and up.
You are able to finance up to 80%-90% of your total funds requested.
Rates are Prime + 2.25 – 2.75%
Business plan assistance is available.
Terms: Up to 10 Years. 25 Years for real estate.
Approved uses: credit lines, working capital, business purchases, equipment, owner occupied commercial real estate, business purchases, franchise purchases, etc.
Non-Approved uses: religious affiliated businesses, residential real estate, investment property, finance or banking industry, gaming industry.

Here are some SBA FAQs.

What is the SBA?

The Small Business Administration is a federal government agency. It was created in 1953 to help small businesses get business loans that they otherwise would not get.

Does the SBA Fund Loans?

No, typically financial institution and lenders fund the loans. The Small Business Administration serves as a guarantor for the loan.

Are there restrictions on SBA Financing?

Yes there are restrictions, but nearly all small businesses qualify. Some of the qualifications are: The applicant has to be a U.S. citizen, and the company has to be based in the U.S. The business must be for profit; the SBA does not fund Non Profit, charities, or religion based businesses. There is employee restrictions of 500 and 100 for manufacturing and other businesses respectively. The applicant must be of good character.

These are just an example of some of the restrictions/qualifications. Others exist but are typically not a problem to overcome. It has been said that 98% of business qualify for SBA Funding.

What is the interest rate and terms of SBA Loans?

Interest rates are determined on a prime +. Typically it is prime plus somewhere between 1.75% and 2.25%. The term of the loans are between 5 and 25 years depending what the loan is used for. Working capital loans generally run from 5 to 7 years. Business acquisition and equipment loans are usually 7 to 10 years, while owner-occupied business property can be termed for 15 to 25 years.

Still want to know more?