SBA GUARANTEED LOAN
Loans secured by the Small Business Administration, have a higher threshold for approval than other types of funding. You must be in business for at least two years and be a U.S. citizen or legal permanent resident. Not every kind of business is eligible; check the Small Business Administration’s requirement list before you apply. You must have no bankruptcies in the last three years and no defaults on government-backed loans. Most importantly, your financial statements must show that your cash flow will support the loan’s repayment.
HOW LONG DOES IT TAKE TO GET AN SBA LOAN?
The SBA does not have a standard time frame since every business loan request is different. That said, the average time to process a loan guaranteed by the Small Administration Administration is approximately 60 to 90 days, with an application for a large sum ($1MM+) taking slightly longer.
HOW CAN I USE THE FUNDS?
You can use the proceeds of the loan for short- or long-term working capital, including seasonal financing, construction financing, and inventory. You can also use it to buy equipment or real estate or to renovate existing real estate.
QUALIFICATION CRITERIA
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Credit Score 680+
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2 years Time in Business
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$500,000 Annual Revenue
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15%-30% Profitability on Tax Returns
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No recent Bankrupticies, Charge-Offs, or Settlements
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Less than 5 Overdrafts and Negative Days per year
DOCUMENTS REQUIRED TO APPROVE:
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Signed Application
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Completed Personal Financial Statement
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12 months of business bank statements (all pages)
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2 years of Business Tax Returns
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2 years of Personal Tax Returns
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Year-to-date Financial Statements
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Balance Sheet
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Copy of Recent Credit Score
BENEFITS:
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Funds could be used for general business purposes
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Great for businesses that need working capital
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Up to $5,000,000
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Funding time: 30-60 days
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Long repayment terms (3-25 years)
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Lowest interest rates (5%-9%)
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The most affordable way to obtain financing for your business