Small Business Administration (SBA) Loans
The SBA is a government entity that helps small businesses gain access to working capital. Formed in 1953, the mission statement of the SBA is “to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters”. SBA loans are not actually issued by the SBA but through banks, credit unions, and other lenders that partner with the SBA. The SBA guarantees a percentage of these loans which adds incentives to banks and other lenders to issue them.
The process of obtaining an SBA can be a little more difficult than some of the other lending products that we offer because there is an intensive application process that reviews the financial records of the business. The results of these reviews will determine if your business will qualify, and depending on the size of the loan, there can even be a collateral requirement. Due to these factors, this type of loan has a more lengthy application process that can last for weeks or even months. Typically SBA loans are on the larger side, usually over $100,000.00, but they generally have some of the most favorable terms.
- Favorable lending terms
- Excellent owner credit as well as collateral are required
- Extended application processing times
- Loan Amount – $50,000 to $5,000,000
- Process Time – 45 to 60 days
- Interest Rate – 6% to 9%