SBA Loan Programs – The Small Business Administration seeks to solve small business cash flow problems by providing operating working capital small business loans to merchants of small and mid-sized businesses.

They also want to help start-ups, and promote commerce and enterprise in particular areas, occupations, industries. The SBA is a government agency and although we can help you get one of their loans, we are not affiliated or endorsed by them.

Initial Requirements

  • Business owners must be American citizens.
  • No previous or outstanding defaults on government backed loans.
  • No tax liens or judgements filed any business, principal, or guarantor.
  • No delinquent taxes owed to the IRS.
  • No open litigation that could cause financial penalties.
  • You must have a detailed business plan.
  • Full documentation required with profit loss, and balance sheet.
  • 10% down payment or capital injection for purchases.

The main advantage of the SBA Loan Program are their low interest rates. There are 2 SBA Loan Programs, the no-collateral Express Loan, and the collateralized 7(a) Loan.

SBA Express Loans

SBA Express Loans have terms of 2 – 10 years with variable interest rates of Prime + 4.75%. The application process takes 2 – 4 weeks and you will be required to meet several qualifications. No collateral is required.

SBA Express Loan Requirements

  • A 680 FICO credit score.
  • Be a current or past US military veteran or the spouse of one.
  • Located in an under-utilized business zone.
  • Sell items that can be exported.
  • Sell items on your website that can be shipped to Canada, Mexico, or any other country.
  • Go to The Wall Street Journal for a link that shows the latest Prime Rate.

SBA 7(a) Loans

SBA 7(a) Loans have terms of up to 25 years with variable interest rates of Prime Rate + 2-3%. Because you will need to provide full personal and business documentation, and you’ll also need to fully collateralize with real estate and/or assets equal to your loan amount, the application process for this loan takes 2 – 6 months.

SBA 7(a) Loan requirements

  • You must be US citizens or registered aliens.
  • It must be a for-profit business.
  • The business mustn’t exceed SBA size standards.
  • Your business must not engage in lending, investing, gambling, or property speculation.
  • You must not be on probation or parole.

Although you don’t absolutely have to have real estate collateral, it is extremely difficult to get one of these loans without it.

And, there is no minimum FICO credit score requirement for 7(a) Loans, but know that you must have very good credit to qualify.

If you think you meet the requirements for either of these SBA Loans, Contact Us to apply …… we’d be happy to help you!