An SBA Loan that offers long-term flexibility *
With lower interest and longer payment terms, SBA loans can be a smart way for small businesses to expand with help from the government.
What Is An SBA Loan?
A Small Business Administration Loan (“SBA Loan”) is a loan program administered by the Small Business Administration and is partially guaranteed by the government. This program works with other financial institutions to help give small businesses access to working capital that otherwise might be unavailable to them. While SBA loans are typically more difficult to qualify for, they offer longer terms and lower interest rates. SBA loans can be a great long-term solution for businesses that are looking to expand, purchase equipment, invest in new technology, or simply need extra working capital.
SBA Loan amounts typically range from $500 to 5.5 million dollars upon approval. Because an SBA Loan is partially guaranteed by the government, it helps reduce the lender’s risks allowing for lower rates and longer terms.
SBA Loans Offer Secure Funding Backed by the Small Business Administration
Gather the following 5 documents to apply.
SBA Loan FAQs
While most lenders and loan programs offered by the SBA have different eligibility requirements, the majority of these requirements are centered around the products or services the business provides, the character of its ownership, and the location of operation. Some of the main factors that the SBA requires are that the business is for-profit, located and operates in the USA, has invested equity in the business, and has had difficulty applying for financing with other lenders in the past.
The Small Business Administration works with various lenders. Any company seeking to apply for an SBA Loan needs to find a lender that works with the SBA, from there, fill out an application with that lender and provide all the documentation required. The lender will then review the application for approval.
To find your business’ SBA Loan status, it’s crucial to understand which type of loan program your business applied for. If you applied for an SBA loan, then the lender your business applied through would have this information, and you should contact them directly for status updates.
It’s a type of loan provided by the Small Business Administration that provides low-interest loans with long-term repayment options to businesses that have less than 500 employees, are non-profits, and sole proprietors or independent contractors that have been impacted by a major disaster. These types of disasters can be a result of a natural disaster or a healthcare pandemic, among others.
Each SBA lender requires different documentation and will ask qualifying questions during the application process. While each lender is different, it makes sense to have a business plan in mind, know the amount and use of funds needed, and have a good credit history. Financial projections, collateral, and industry experience are also a plus. The SBA states that even businesses with low credit still have a possibility of being accepted.
When filling out an application, documentation to have on hand includes past bank statements, a valid form of identification, a business checking account, and past tax returns.
Yes. SBA loans are ideal for businesses that are having a hard time getting approved by traditional lenders and require longer-term repayment options with lower interest rates.
Financing With Rapid Finance
At Rapid Finance, we’re dedicated to finding custom financing solutions for our small business clients. It’s simple, your business is our business. We provide you with all the resources you need to unlock big potential for your small business.