Small Business and SBA Lending Blog
Find key information about starting and operating a small business, with additional SBA 7(a) financing tips and advice.
Are SBA 7(a) Loans Available for Franchises?
If you have a franchise, you can get funding for it with an SBA 7(a) loan. Roughly 10% of all SBA loans go to franchises.
SBA 7(a) Loans vs. ROBS Financing: Using Retirement Funds for Business
Compare SBA 7(a) loans and ROBS financing to determine the best way to fund your business using retirement funds or government-backed loans.
SBA 7(a) Loans vs. Equipment Financing: Get Equipment the Smart Way
Explore the benefits and considerations of SBA 7(a) loans versus equipment financing to determine the best option for funding your business's equipment needs.
How Industry Experience Helps Small Business Buyers
Discover how your industry background can boost your chances of securing an SBA loan for a small business acquisition.
SBA 7(a) Loans vs. Angel Investors: Attracting Investors vs. Securing Loans
While there are some obvious differences — particularly around how much easier it is to get SBA financing — it's worth exploring how these two types of capital differ for your small business.
SBA 7(a) Loans vs. Business Credit Cards: Maximizing Financial Flexibility for Your Business
Explore the differences between SBA 7(a) loans and business credit cards to find the best financial solution for maximizing your business's flexibility and growth.
What Is the SBA 7(a) Loan Interest Rate? (Updated Daily)
Interest rates for the SBA 7(a) loan depend on several factors — the term and amount of the loan, the current WSJ Prime rate, and the borrower's profile. Find out everything you need to know.
SBA 7(a) Loans vs. P2P Lending: the Pros and Cons of Peer Lending
Discover whether an SBA 7(a) loan or P2P lending is the best fit for your business, with real-world examples and a clear comparison of benefits and drawbacks.
SBA 7(a) Loans vs. Crowdfunding Platforms: Understanding Crowdsourced Financing
Explore the distinct benefits and considerations of SBA 7(a) loans and crowdfunding platforms to determine the best financing option for your small business.
SBA 7(a) Loans for Trucking and Transport Companies
SBA 7(a) loans can be an excellent way for trucking companies to source working capital, expand operations, or buy another business. Find out more.
SBA 7(a) Loans vs. Venture Capital: Evaluating Funding for Startups
Explore the nuances of SBA 7(a) loans and venture capital to make an informed decision that aligns with your startup's financial needs and growth strategy.
SBA 7(a) Loans vs. Personal Loans: Determine What's Right for Your Business
Explore the differences between SBA 7(a) loans and personal business loans to determine the best option for your small business with in-depth guidance.
SBA 7(a) Loans vs. Invoice Financing: Finding the Right Cash Flow Solution
Explore the differences between invoice financing and SBA 7(a) loans to determine the best cash flow solution for your business.
Merchant Cash Advances vs. SBA 7(a) Loans: Navigating Your Financing Choices
Compare merchant cash advances and SBA 7(a) loans to determine the best financing option for your business needs.
SBA 7(a) Case Study: Breathing Life Back Into a Landmark
Discover the unique journey of the Doctor Sax House's revival, showcasing Janover's innovative financing solutions and the power of thinking outside the traditional lending box.
Understanding the SBA 7(a) Loan Fees: Both for Borrowers and Lenders
The ‘Hidden’ Costs of SBA 7(a) Loans
It’s essential you know exactly what you need to pay for one of the strongest small business financing options out there.
Using Social Media to Elevate Your Business
For many small businesses, social media platforms offer a great way to grow and build brand awareness. Knowing how to use it is the key.
How to Write a Business Plan for an SBA 7(a) Loan
Learn to write a strong, coherent business plan. It is essential to getting approved for an SBA 7(a) loan.
Why 2023 Is the Right Time to Buy a Business
There are more opportunities to buy businesses today than ever before, and an SBA loan could help you achieve your goal with no money down.
What's the Difference Between an SBA 7(a) and a 504 Loan?
Both the SBA 7(a) and 504 loans are government-backed loan programs that give small business owners and lenders the opportunity to meet goals, large and small. Learn the key differences.
How Major Financial Changes Can Impact Your SBA Loan Application
Explore the importance of financial stability during the SBA loan process, complete with actionable insights and a real-world case study.
20 Industries With the Best SBA 7(a) Track Records
We’ve analyzed data from the Small Business Administration to showcase which industries have the lowest levels of defaults and charge offs for SBA 7(a) loans.
Construction Project Documentation for SBA Loans: Your Comprehensive Guide
Using an SBA 7(a) loan for construction requires a lot of documentation. Use our comprehensive guide to understand exactly what to have on hand.
Complete Guide to Entity and Guarantor Documentation for SBA 7(a) Loans
It's essential to be prepared with updated and accurate documentation to close your SBA loan smoothly. Read our guide to find out exactly what you need to do.
Understanding Legal and Insurance Needs for SBA Loans
This comprehensive step-by-step guide helps you navigate and fulfill legal and insurance requirements for SBA financing.
Tackling Federal Tax Liabilities for a Smooth SBA Loan Close
Learn how to proactively address federal tax liabilities to secure your SBA loan with our guide.
Getting Life Insurance: Necessary for Your SBA Loan
Life insurance is typically required to get SBA financing. Explore our guide to understand everything you need to know.
Disclosing Assets Properly to Streamline Your SBA Loan Closing
Avoid headaches tomorrow by thoroughly and transparently disclosing your assets during the SBA financing application process. Learn how.
Why Equity Verification Matters for SBA Loans
Discover how equity verification works — and what seasoning is — in the small business financing world, with practical tips and insights along the way.
How Liens, Judgments, and Bankruptcies Can Impact Your SBA Loan
Learn how to navigate through liens, judgments, and bankruptcies to successfully secure your SBA loan with proactive steps and lender communication.
Close Your SBA Loan Faster By Being Responsive
Being quick to respond with accurate information is one of the easiest ways to ensure your SBA financing package closes quickly.
What Zions Bank’s Exit Means for Small Business Financing
While fewer lenders isn’t a good thing, borrowers still have plenty of great options for SBA loans.
Seller Notes: A Vital Tool for Small Business Owners
Taking a loan from a seller is a very common — and often advantageous — way to finance part of a business or real estate acquisition.
Understanding SBA Loans: What Is an EPC and an OC?
This comprehensive guide provides key insights into what an EPC and an OC are, and how they form the backbone of SBA financing strategy.
A Physician's Guide to Business Financing
Navigate the complex world of business finance with our comprehensive guide on SBA loans for physicians. Discover the key to expanding your practice, buying equipment, and more.
Busting 5 SBA 7(a) Loan Myths
SBA 7(a) loans are great small business loan options. But is everything you've heard about them true? Let's break down some myths.
How the SBA's May 2023 Update Impacts SBA 7(a) Equity Requirements
The update significantly changes equity requirements for SBA loans as well as how sellers’ notes are handled.
Top 5 States for SBA Loan Approvals in 2023
The SBA approved more than 26,000 7(a) loans with a value of nearly $13 billion in the past six months. Find out which states had the most.
Small Business Loans Guide: Before You Start
There are many reasons to get a loan for your business. To start a business, for working capital, for equipment, for emergencies — the list goes on. Find out more with our ultimate guide.
Who Are Specialized Lenders in the SBA 7(a) Loan Program?
In terms of SBA lending, a specialized lender is a bank or other financial institution that meets the SBA's criteria for offering SBA loan products.
Writing a Proposal for the SBA 7(a) Loan
Even though the SBA exists to promote the inception and growth of small businesses, its funding is limited. If you're seeking an SBA 7(a) loan, you'll have to write an exceptional loan proposal to get the funding you need to take your business to the next level.
What Is a Working Capital Loan?
A working capital loan is a loan used to fund the everyday operations of a business. Learn what this includes with our guide.
What Is the SBA 7(a) Loan Maximum Amount?
The maximum amount for an SBA 7(a) loan is $5 million, but other programs have different maximum amounts. Here’s a breakdown of maximum SBA loan amounts.
What Is the 7(a) Small Loan?
The SBA 7(a) Small Loan is the name for an SBA 7(a) Loan up to $350,000. The SBA offers a guarantee of 85% for loans of up to $150,000, and 75% for loans between $150,001 and $350,000. For a SBA 7(a) Small Loan, the SBA allows lenders to submit two initial forms that quickly generate a credit score
What Is the Export Working Capital Program?
The Export Working Capital Program is a type of SBA 7(a) loan that’s specifically for businesses that generate sales through exports and require upfront assistance to support these sales.
What Is the Veterans Advantage Program?
The Veterans Advantage program supports small businesses that are at least 51% owned by a veteran, active duty service member, or a military spouse or widow.
SBA 7(a) Paperwork Explained: Form 1919
Form 1919 gives the SBA crucial information about you, the borrower, and also facilitates a background check. Once you fill it out, you’ll submit it to your participating lender (not to the SBA itself). You must answer each of its 22 questions, and the SBA may review your answers.
SBA 7(a) Paperwork Explained: Form 1920
On SBA Form 1920, the lender must provide information about the loan terms, how the funds will be used, and more. This form helps the SBA make the final decision about whether to guaranty your loan, and about how the loan paperwork will be processed. Even though you aren’t personal
What Is the SBA Express Loan?
An SBA 7(a) Express Loan has fewer hoops to jump through than the other SBA 7(a) loans, since you won’t be waiting on as many back-and-forth approvals. Of course, you do still need to qualify, you’ll only be backed for up to 50% of $500,000, and an Express Loan may ultimately be more expensive.
SBA 7(a) Paperwork Explained: SBA Form 413
SBA Form 413 is the applicant’s personal financial statement -- in other words, it's the part where your lender and the SBA hold a microscope to your financial history! In seriousness, this form helps the SBA qualify the applicant for the loan by getting a better picture of the applicant’s creditwo
What Is the SBA 7(a) Loan Approval Time?
An SBA 7(a) loan can take time to move through approval — typically, 60-90 days. In addition, if your lender is an SBA Preferred lender, they will have the authority to approve your loan much faster than a non-preferred lender.
What Is the SBA 7(a) Standard Loan?
An SBA 7(a) Loan for over $350,000 is called a Standard Loan. These loans are eligible for SBA guarantees of up to 75%. It’s important to remember that while the SBA is backing the loan, traditional lenders such as banks and credit unions will actually loan you the money.
SBA 7(a) Paperwork Explained: Form 159
While Form 159, “Fee Disclosure Form and Compensation Agreement,” is only required for about a third of SBA loan applicants, you definitely want to be sure that if you need it, you have it – and it’s filled out correctly! Luckily, it’s one of the simplest SBA forms, but because it seems so simple (i
SBA 7(a) Paperwork Explained: SBA Form 912
When you're applying for an SBA 7(a) loan, one of the forms you'll have to fill out is the SBA Form 912. The SBA uses Form 912 as a statement of personal history to help determine the your eligibility for a loan. This form applies no matter what type of SBA loan you’re getting. Some lenders require
What Is the Patriot Express Loan?
As of June 28, 2007, the SBA 7(a) Loan Program (the most common and popular program offered by the SBA) offered the Patriot Express Loan. Like most loans, there was no absolute guarantee of approval, but the goal of the Patriot Express Loan was to speed up military veterans’ access to business capit
What is the Small Business Administration (SBA)?
The Small Business Administration, also known as the SBA, is a U.S. government agency tasked with providing assistance and support to small businesses across the country. Founded in 1953, the SBA’s activities are often summarized by using “three C’s” of capital, contracts and counseling.
What are CAPLines?
CAPLines are a series of permanent loan programs under the SBA 7(a) that allow small business owners to take out loans specifically for seasonal or cyclical needs.
What Is an SBA Loan Amortization Schedule?
During the early years of your loan repayment, most of the funds from each payment will go toward interest, not the principal. At some point that changes, and your payments start contributing toward the principal balance rather than interest. All of this information is detailed in the amortization s
What is a Small Business Administration (SBA) Loan?
SBA Loans are a flexible, competitively priced business financing option that the U.S Small Business Administration guarantees.
What is the SBA 504 Loan Program?
Businesses looking for funding options for mid-sized to large real estate and land projects can find what they need in the SBA 504 loan program.
What Are the Different SBA 7(a) Loan Programs?
Each of the SBA 7(a) loan programs are loan products guaranteed by the SBA and offered through financial institutions. They are designed to encourage American small businesses to grow and thrive. There are eight main SBA loan programs.
What Is an SBA Preferred Lender?
An SBA Preferred Lender can help borrowers get the funds they need faster than a regular SBA lender. When a bank or financial institution has a "Preferred Lender" status, this institution has the authority to make final credit decisions on SBA-guaranteed loans.
What Is the Export Express Program?
The Export Express program is a streamlined process for lenders to get SBA-backed financing using the lender’s own decisions, processes, and documentation.
What's an LTC and LTV Ratio?
Both the LTC (loan-to-cost) and LTV (loan-to-value) ratio are key factors in any commercial real estate construction project. Find both outlined below, but if you'd like direct advice, don't hesitate to reach out to us at SBA7a.loans .
What Is the Maturity of the SBA 7(a) Loan?
Maturity is the total length of payments a borrower will make to a lender. The term lasts until the date of the final payment, and payments are broken down based on the length of the loan.
What is the LTC Ratio for the SBA 7(a) Loan?
If your business plans include taking out a commercial real estate construction loan , you’ll want to familiarize yourself with the Loan to Cost (LTC) ratio and how it impacts your financing.
What Is a Pilot 7(a) Program?
The SBA provides Pilot 7(a) loans sporadically to address development of a specific sector or geographical region. Such loans have their own terms and conditions separate from a standard 7(a) loan.
What Are the SBA 7(a) Loan Borrower Eligibility Requirements?
Eligibility depends on several factors decided by both the lender and the SBA. You must operate a for-profit business, have reasonable owner equity, have a proven need for the loan, and intend to operate the business within the United States or its territories.
What is an SBA 7(a) Loan?
The SBA 7(a) loan is the Small Business Administration’s (SBA’s) most popular form of business financing. SBA 7(a) loans , which were issued in excess of $25 billion in 2017, can be used for both working capital and commercial real estate , making them an excellent choice for entrepreneurs with a
What is FICO SBSS?
If you’re applying for a small business loan, like the SBA 7(a) loan , there are two types of credit scores that can make a big difference: your personal credit score and your small business credit score. While your personal credit score is currently the more important of the two, small business
Using the SBA 7(a) for an Office Building
Whether you’re building a new office building or buying an existing one, a business mortgage is an expensive ordeal. SBA 7(a) financing can help.
Steps to Getting an SBA 7(a) Loan to Open a Retail Store
The SBA backs loans for retail businesses for a variety of uses. Find out how you can grab one to take your store to the next level.
Using the SBA 7(a) for a Retail Store
Getting financing for a retail business, whether for working capital, inventory, or real estate, is often a major challenge — and headache. Find out how an SBA 7(a) loan can help your business.
What Are Liabilities in the SBA 7(a) Program?
A business’s financial obligations—like SBA 7(a) loan payments, salaries, mortgages, and deferred payments—are considered liabilities. Liabilities are deducted from a business’s total equity. A business will settle liabilities over time by paying them off, or by trading goods or services.
What Are Fixed Assets in the SBA 7(a) Program?
The SBA talks about fixed assets as tangible and long term, meaning they can’t be converted into cash easily. Things like real estate and land, certain equipment, and other specialized property are considered fixed assets.
Using the SBA 7(a) for a Car Wash Lot
The SBA 7(a) loan is a government-backed loan of up to $5 million. The SBA 7(a) loan can be used for nearly all of your car wash’s needs, from real estate to working capital.
Using the SBA 7(a) for a Preschool
As the daycare industry continues to grow, there are some incredible advantages if you tap financing to propel your business to the next level.
Using the SBA 7(a) for a Gas Station or Convenience Store
Getting an SBA 7(a) loan from a bank, credit union, or other lending institution is a great way to reach your goals as the owner of a gas station or convenience store. The SBA 7(a) loan can be used for any legitimate business purpose, including a business mortgage.
Using the SBA 7(a) Loan for a Restaurant
New and existing restaurants can benefit from an SBA loan. Find the funding you need, whether it's for real estate, equipment, working capital, or a variety of other uses.
Using the SBA 7(a) for a Motel
When you’re looking for an SBA lender, it’s important to find one who specializes in motels. Motels have unique underwriting procedures, as they're often seen as high-risk. Ensure you’re getting the best possible terms from your SBA lender.
Using the SBA 7(a) for a Self-Storage Facility
SBA 7(a) financing has many uses for the self-storage businesses. They can be used for new construction, refinancing, or purchasing existing facilities.
Finding the Funding to Open a Bar or Club
Bars and restaurants have a high start-up cost compared to other industries, with an average of $500,000. As a business owner, this might seem daunting, but financing options exist for you.
Using the SBA 7(a) Loan for a Hotel
Starting and running a business in the hospitality industry is expensive, which is why the SBA offers SBA 7(a) loans of up to $5 million to help business owners.
Veterinary Practice Financing Through the SBA 7(a) Loan Program
In 2017, veterinary practices and animal hospitals employed nearly 400,000 people across the U.S., while generating a staggering $42 billion in revenue. If you’re a veterinarian or animal hospital owner interested in purchasing or expanding your business, an SBA 7(a) loan could be your best option
What Is the SBA Veterans Advantage Program?
The SBA Veteran Advantage Program honors veterans and other qualified individuals with lower fees on all of their popular SBA loan products.
SBA 7(a) Paperwork Explained: Business and Affiliate Financial Statements
In addition to required forms that the SBA supplies, you and your business affiliates need to provide financial statements for your business. This helps demonstrate your ability to repay the loan. In your paperwork, you should include a current (dated within 90 days) financial overview statement, as
What Are the Different SBA 7(a) Loan Programs?
Did you know that there are several different SBA 7(a) loan programs available to small business owners? The SBA 7(a) loan is the most popular of these, but it’s actually just one of several government-backed loans offered through lending institutions. Many small business owners may find themselves
Does the SBA Have State-Specific Requirements for Their Loan Programs?
Certain states may have their own requirements regarding the specifics of how the SBA 7(a) loan is used. Familiarize yourself with them before beginning the SBA 7(a) application process.
5 Reasons Why Your Small Business May Not Be Approved for an SBA Loan
We wanted to get some perspective from commercial loan officers on the most common mistakes they see business owners making when applying for a loan, so we put this question to several different lenders — and the responses were surprising.
SBA7(a) Loans in Nevada
Operating in one of the fastest growing states, SBA7a.loans works in Nevada’s thriving business hubs including Las Vegas, Henderson, and Reno. We provide a financially sound way to open your small business and grow it in Nevada.
Where to Find Startup Business Loans in 2018
Startup business loans aren’t super easy to come by. You may have already come up against this challenge in meetings with lenders. If you’re at your wits end, or you’re about to set up a spiked lemonade stand on the corner to fund your endeavor, we’re here to help. We’ve compiled the ultimate list o
Top 5 SBA 7(a) Lenders of 2022
With close to $18.1 billion in approved SBA 7(a) loans so far this year, we take a look at this year’s five biggest lenders by volume.
Can You Get an SBA 7(a) Loan for a Medical Practice?
If you’re a doctor looking to start, purchase, or expand your medical practice, an SBA 7(a) loan could be a great choice. Find out why.
What Are SBA Microloans?
SBA Microloans, which come in amounts between $10,000 and $50,000, are the smallest loans offered by the Small Business Administration.
Are there SBA Loans for Women Entrepreneurs?
According to the National Association of Women Business Owners (NAWBO), there are over 11.6 million women entrepreneurs across the U.S., generating approximately $1.7 in sales each year. And, just like other hardworking entrepreneurs, women need capital in order to start, maintain, and grow their bu
Seller Notes in Relation to SBA 7(a) Loans
A seller note is a loan given by the current owner of a business to a new buyer, often in order to bridge the gap between the amount of financing the buyer has and the purchasing price of the business.
How Does the SBA Define a Small Business?
Due to its mission, the SBA only guarantees loans to small businesses— but what is a “small business”? Well, according to the SBA , a small businesses have a maximum of anywhere between 250 and 1500 employees— all depending on the specific industry the business is in. Additionally, businesses have
SBA Loans vs. Conventional Loans: What's the Difference?
When it comes to getting financing for your small business, one of the biggest choices you’ll have to make is whether to go with an SBA loan or a conventional loan. Conventional, non-SBA loans may provide larger loan amounts, and can sometimes have lower interest rates than their SBA counterparts. H
Can Non-US Citizens Qualify for SBA Loans?
If you are a non-U.S. citizen considering an SBA loan, there are some clear requirements you must be aware of.
SBA 7(a) Paperwork Explained: Draft Authorization
The Draft Authorization is a living document and a specific contract between your lender and the SBA. It’s a written agreement providing the terms and conditions under which SBA will guarantee your business loan, and will outline the specific conditions which must be met to keep the SBA guaranty. Th
How Do SBA Disaster Loans Work? What They Are and How to Apply
After a large-scale natural disaster such as a hurricane, flood, earthquake, wildfire, or tornado, the federal government gives the SBA the job of long-term recovery assistance. The SBA Disaster Loan Program is the only SBA loan program where the SBA lends directly to borrowers.
How to Get Your SBA Loan Approved Faster
When you’re in the market for a business loan, getting access to the funds you need quickly is definitely a priority. If you work with an SBA Preferred Lender, you’ll get your loan processed far faster than working with another lender.
SBA Loan Requirements: Credit Scores
Is your personal credit good enough to apply for an SBA loan? Understand the requirements to find out if you'd qualify.
SBA Express Loans for Veterans
If you’re a veteran who wants to get an SBA Express loan , the Small Business Administration is committed to making the process as easy as possible. Through the SBA’s Veteran Advantage program, veterans and other qualified individuals, such as the widowed spouses of veterans, can qualify for a vari
What are SBA Community Advantage Loans?
If you’re a minority business owner, or a member of another underserved community, it can be especially challenging to get financing for your small business. Fortunately, the Small Business Administration is committed to providing small business loans to underserved populations through its Communi
SBA 7(a) Loans for Assisted Living Facilities
The underwriting procedures for an assisted living facility are different from other types of business mortgages. If you’re looking into buying an owner-occupied adult care facility, engaging in new construction, or buying an existing building for your venture, there are several SBA fundi
SBA 7(a) Loans for Bars and Clubs
Whether you have a new business or a seasoned establishment, find out what an SBA 7(a) loan could do for your bar or club's bottom line.
Using the SBA 7(a) Loan for a Bed and Breakfast
SBA loans are available for B&Bs. Find out how this financing could give your business the boost it needs.
SBA 7(a) Loans for Auto Repair Shops
The global automotive aftermarket industry is projected to grow to $722.8 billion by 2020. Lenders also know that 75% of aftermarket auto repair is performed by independent auto repair shops.
Business Mortgages for Motels: A Primer
Traditional banks and lenders tend to see motel businesses as high risk. That's why an SBA 7(a) loan may be the ideal source of funding for real estate or operating costs for your motel.
Getting a Business Mortgage for a Hotel
Looking to buy a hotel, or grow your hospitality business? An SBA 7(a) loan can help alleviate your funding challenges, whether you need a business mortgage, new equipment, or working capital. Here's how the SBA helps.
SBA 7(a) Loan Checklist: Getting Ready to Apply
Between growing business, putting out fires, and trying to squeeze in some sleep (remember that?) you also have to magically conjure up the time to prepare to apply for your SBA loan, too. Don’t let important details get lost in the shuffle. Use our PDF checklist as your personal assistant, and stay
Saving Up a Down Payment for an SBA Loan
The SBA7a loan, backed by the Small Business Administration , has made it easier for new borrowers and so-called “weak” borrowers to secure the capital that they need to open a small business. But as with most other loans, borrowers still have to be able to come up with a down payment.
Do SBA 7(a) Loans Require Collateral?
The SBA 7(a) loan programs don't require collateral, but individual banks may have their own requirements. Buildings, equipment, and land are all possible types of collateral that you can offer.
How to Get an SBA Loan for a Restaurant
Most banks consider restaurants to be high risk, meaning that they are far less likely to approve loans for restaurant owners. Find out how you can get the funding you need.
SBA 7(a) Paperwork Explained: Lender's Credit Memorandum
For SBA Loans of $350,000 or less, the lender will perform a thorough and accurate credit analysis of your finances to show proof that you have the ability to repay your loan. The compilation of this information and documentation is called a Lender's Credit Memorandum.
SBA 7(a) Glossary: Important Terms to Know
Small business owners and entrepreneurs have big dreams, but they don’t always have the capital to fund them. The Small Business Administration’s 7(a) loan program is designed to help dreamers build their business, with multiple loan types suiting various goals and needs. Navigating the world of sm
SBA 7(a) Fact Sheet: All the Essentials in One Page
If you're wondering about collateral, loan length, terms, and rates (but don't want to sift through pages of literature) you've come to the right place. Here's our free SBA 7(a) loan fact sheet. Use this one-pager as your quick reference guide to the Standard 7(a) loan.
Wondering What a Sample SBA 7(a) Loan Proposal Looks Like?
If you're a hands-on learner (and the type who likes to be insanely prepared), you likely want to know what an SBA loan proposal might look like before you jump into the arduous process of applying for one. That's what we're here for! In our sample loan proposal, see a filled-out version of a real S
SBA 7(a) Fact Sheet: Loan Terms, Fees, and More
Get the essential details on the SBA 7(a) loan in our free fact sheet here. Download now to see the latest rates, maturity, fees, amounts, and other important information about the Small Business Administration's main loan program for entrepreneurs and business owners.
Can You Refinance an SBA Loan?
In most cases, the SBA will not permit a borrower to refinance an SBA-guaranteed loan such as the SBA 7(a) or SBA 504 loan. However, this doesn’t mean that borrowers who have trouble paying back their loans or want to achieve better loan terms don’t have any options.
Can SBA Loans Be Used for Real Estate Investment?
SBA loans cannot be used for businesses in which the primary source of income is real estate investment. In fact, SBA loans can only fund real estate that is owner-occupied, and will be used primarily by the business that is taking out the loan. However, in most cases, a business only needs to oc
SBA 7(a) Loans for Beauty Salons
An SBA 7(a) loan can be ideal for beauty salon owners looking for sources of financing for equipment, working capital, or real estate.
What is the Required Debt Service Coverage Ratio (DSCR) for SBA 7(a) Loans?
Debt service coverage ratio, or DSCR, is one of the most important factors lenders look at when approving a loan. DSCR is calculated by dividing a business’s net operating income by their total debt service. For SBA 7(a) financing , most lenders want a borrower to have a DSCR of 1.25x or more.
Non-SBA Financing Options for Small Businesses
It’s normal for entrepreneurs (like you!) who own, or are planning to own, a small business frequently find themselves in need of additional funds to run their businesses. While SBA 7(a) loans are a favored small business financing option, they’re absolutely not the only route you can take. Here are
Qualifying for an SBA 7(a) Loan
With care and attention, you can give yourself the best possible chance at getting the SBA loan that your business needs to grow and thrive.
What Prime Rate Hikes Mean for Small Business Owners (Updated Daily)
WSJ Prime rate today is 7.5%. When the Fed adjusts the federal funds rate, it has a direct impact on small businesses across the country. Find out more in our guide.
5 Quick Fixes to Improve Your Business Credit
Your business credit score is one of the first numbers lenders will use to gauge your ability to manage your finances and pay off any potential loans they grant you. If your business credit score is low, you may be seen as too big of a risk, so you may want to improve your business credit before try
Can You Get Marina Financing With An SBA 7(a) Loan?
SBA 7(a) loans can offer marina owners a lifeline by providing working capital financing, refinancing existing debt, or funding the acquisition of a property.
Can You Get Multiple SBA Loans?
Yes, as long as each of your loans fits within the SBA’s lending guidelines, there is nothing preventing you from having more than one SBA loan. This applies to both SBA 7(a) loans and SBA 504 loans . However, if you get approved for two SBA loans within a 90 day period, the SBA may treat it as o
Do SBA 7(a) Loans Have Prepayment Penalties?
Like many kinds of loans, SBA 7(a) loans do have prepayment penalties, which are fees designed to compensate a lender should a borrower decide to pay off their loan early. Since lenders depend on getting interest payments for a specific number of years when they issue a loan, prepayment penalties
New SBA Loan Rules Make It Easier for Borrowers to Acquire Businesses
On Jan. 1st, 2018, the SBA enacted a series of new rules making it easier for individuals to use SBA 7(a) loans to purchase a business. Specifically, the SBA modified its Standard Operating Procedures (SOPs), including SOP 50 10 5(J), which reduces equity requirements for business acquisitions.
SBA 7(a) Loans for Manufacturers
If you own and operate a manufacturing company, an SBA 7(a) loan can provide you with funds to expand your firm, build a new headquarters, acquire a competitor, or refinance existing debt.
Getting an SBA 7(a) Loan to Buy Out a Partner
If you run a business with one or more partners, there may come a day when you want to buy one or more of them out. The SBA 7(a) loan can finance this — find out more.
SBA Loans for Plumbers
If you own a plumbing business and want to expand your company, buy a competitor, or refinance business debt, an SBA 7(a) loan could be one of the best ways to do it.
Are There SBA 7(a) Loan Programs for Minorities?
Right now, there are more than 11 million minority-owned businesses across the U.S.— and that number is growing rapidly each year. While there are no SBA 7(a) loan programs specifically for minorities, the SBA 8(a) Business Development program is designed to favor minority-owned businesses. Plus
What are the Pros and Cons of SBA 7(a) Loans?
SBA 7(a) loans are some of the most small business popular loan products in the U.S, with a total loan volume of almost $26 billion in 2017 alone. And, while these loans can provide businesses with the capital they need at extremely affordable rates, they aren’t without their disadvantages. In this
What is a Low-Doc SBA Loan?
If you’re a borrower who wants an SBA loan fast, a low-doc SBA loan could be the ideal solution. Unlike typical SBA 7(a) loans , which may require up to 2-3 months to be finalized, low-doc loans can be completely finalized within 45 days (or even sooner.) Low-doc loans offer borrowers between $25
Can You Get an SBA 7(a) Loan for a Medical Center?
Private medical centers play an important role in the American healthcare system. Find out how an SBA 7(a) loan can give your business an advantage.
How Much is the SBA 7(a) Down Payment?
SBA 7(a) loan downpayment is lower than a standard business loan. If you qualify, you may pay as little as 5 or 10% down, depending on the lender’s policies, purpose of the loan, amount borrowed, your credit history, and more.
The Top SBA Lenders of 2018
Looking for the perfect SBA lending institution to fund your next business move? Increase your odds by going with one of the top lenders of 2018. Here, we compare six of the top SBA 7(a) lenders in different geographic areas in the U.S. to help you determine which SBA lending institution is right fo
How Long Does it Take to Approve an SBA 7(a) Loan?
SBA 7(a) approval time varies, depending on the lender’s experience level. Preferred lenders offer fastest closings, followed by certified lenders and standard lenders. All will guarantee your small business loan under SBA rules.
SBA Loan Comparison Flowchart: What's the Best SBA Loan for Me?
You know you need financing for your small business, but you're wondering which SBA loan product to choose. With several different core programs like the Standard 7(a), Small loan, and CAPlines, it's tricky to figure out which loan is best for your situation. To get started sorting out the differenc
How to Save Up a Down Payment for an SBA Loan
Why do you need a down payment if you want the SBA to approve your loan request? Because the SBA considers your personal investment a sign that you’ll be more motivated and careful with the finances of your business, as well as its overall success.
How to Fill Out Paperwork for the SBA 7(a) Loan
Your business is counting on potential SBA funding to get off the ground (or grow). You want to make sure you’ve prepared yourself to the best of your ability before you sit down to meet with a lender, which means filling out a ton of paperwork.
SBA Loans Flowchart: Which SBA Loan is Right for Me?
Think you're ready to take out an SBA loan? Follow our flowchart to see which loan best fits your needs. Keep in mind, while we've made this tool as accurate as possible, nothing beats meeting with a loan expert to talk details. Contact our team for a free consultation on SBA loans.
SBA Loans for Laundromats and Dry Cleaners
There's still a huge amount of demand for laundry services today. Find out how an SBA 7(a) loan could make a major difference in your business plans.
What are SBA International Trade Loans?
SBA International Trade Loans can provide much-needed financing for small businesses expanding export operations, so long as they work to improve or expand operations in the U.S.
SBA 7(a) Loans for Landscaping Companies
There are nearly half a million landscaping businesses across the U.S. Learn how the SBA 7(a) loan can set yours apart from the crowd.
SBA 7(a) Loans for Liquor Stores
There are about 50,000 wine, beer, and liquor stores throughout the United States, generating an annual revenue of approximately $60 billion. Find out how an SBA 7(a) loan can help yours.
SBA 7(a) Loans for Tax Preparation Firms
Tax preparation firms can use SBA 7(a) financing to buy real estate, acquire a competitor, or even fund working capital.
SBA 7(a) Loans for Insurance Agencies
The SBA 7(a) loan has myriad uses for insurance agencies, including purchasing or expanding an agency — or even buying real estate.
Small Business Loans for Real Estate Agents
In 2017, over 6 million homes were sold across the United States, and nearly 90% of sellers used a real estate agent to help them through the process. Right now, there are over 2 million Americans with active real estate licenses, and over 1.3 million members of the National Association of Realtors
SBA Loans for HVAC Companies
If you own or operate an HVAC business and you need funding to maintain or grow your firm, getting an SBA loan could be the ideal solution.
What is a Commercial Real Estate Loan?
A commercial real estate loan is a mortgage loan secured against a commercial property. It’s similar to a typical home loan, except it’s for a commercial property rather than a residential one. Here’s how to get one.
Coronavirus and SBA Loans
Small businesses impacted by the COVID-19 Coronavirus may want to apply for an SBA loan through the Economic Injury Disaster Loan Program, the SBA 7(a) loan program, or the SBA Express Loan program.
How Do Commercial Real Estate Loans Work?
Commercial real estate lending isn’t rocket science. But the lack of resources out there on the topic certainly make it feel that way, sometimes. That’s why we’ve designed this infographic to break it down into logical steps.
Does the SBA 7(a) Loan Program Have Borrower Equity Requirements?
Yes. Borrowers are expected to inject their own money into their business, and this monetary injection is what’s referred to as borrower equity or collateral . Your lending institution may require you pledge a second mortgage on your home or other collateral.
Understanding How the SBA Guarantees Loans
The SBA doesn’t lend money directly, but guarantees a portion of loans made by third-party lenders. The amount the SBA will back is based on the amount of the loan. Here’s a breakdown of how the guarantee works for the SBA 7(a) loan program.
Can You Use a Gift as a Down Payment on an SBA 7(a) Loan?
Fortunately for SBA loan borrowers, there’s nothing preventing you from using a gift as a down payment on an SBA 7(a) loan . In most cases, however, the gift must be a from a family member. Otherwise, the lender may be concerned that the gift is actually a loan in disguise— and, that it might h
Can You Combine an SBA 7(a) Loan with an SBA 504 Loan?
Many borrowers appreciate the fact that SBA 7(a) loans can be used for both working capital and commercial real estate— which makes them one of the most versatile loans on the market. However, their close cousins, SBA 504 loans , which can only be used for commercial real estate, often have lower
Can You Get a Gym Equipment Loan Through the Small Business Administration?
If you’re a gym or health club owner, the SBA 7(a) or even Express loan could be a terrific option to finance the acquisition of gym equipment.
Can You Get an SBA 7(a) Loan for a Funeral Home?
If you operate a funeral home or are considering opening one, an SBA 7(a) loan could be a fantastic option for a variety of uses. Learn more.
SBA Loans for Computer Repair Companies
If you’re looking for financing to open, expand, or refinance business debt on a computer repair company, an SBA loan could be the perfect option. Find out how with our guide.
SBA 7(a) Loans for Builders and Construction Companies
If you’re interested in expanding a construction company that you currently own, acquiring an existing construction business, or buying out a partner, the SBA 7(a) loan could be exactly what you need.
SBA 7(a) Loans for Dental Labs
If you own or operate a dental lab, an SBA 7(a) loan could be a great option for financing the expansion or working capital of your business.
Can You Get an SBA 7(a) Loan for a Dental Office?
SBA 7(a) loans are available for all kinds of uses for dental practices, from financing working capital to even the construction of a new building. Find out more.
Goodwill in Relation to SBA 7(a) Loans
Goodwill is an intangible asset that arises when a new owner purchases a business. Goodwill only arises when the new owner purchases the business for more than the tangible and intangible assets, minus the business’s liabilities. In general, SBA loans limit the amount of goodwill involved in a bus
The Entrepreneur’s Guide to Startup Business Loans in 2018: From SBA and Crowdfunding to VC and Beyond
There are plenty of both traditional funding paths (like SBA loans and venture capital) and less conventional options (crowdfunding or microlending) available today. Here’s the SBA7a.loans ultimate guide to U.S. startup funding options in 2018.
The Internet's 9 Best Commercial Loan Calculators
For many entrepreneurs, figuring out how to finance their plans is just as difficult as figuring out those plans in the first place. For that, online commercial loan calculators are an incredibly valuable resource.
Using the SBA 7(a) for a Car Dealership
From 2012 to 2017, the new car dealership industry in the United States grew by 4.5%. Take advantage of this growth by seeking out government-backed loans offered through traditional lenders like banks, credit unions, and lending institutions.
Why Now is the Time to Get SBA Funding for an Assisted Living Facility
There's a growing need for assisted living facilities in the U.S. If you're looking at opening or expanding an adult care facility, an SBA 7(a) loan is the perfect way to make your business goals come to life.
3 Ways the SBA 7(a) Loan Can Help Entrepreneurs with Owner-Occupied Commercial Real Estate
Getting funding for real estate for a startup can be tricky. A traditional loan from a bank, credit union, or other lending institution can require 20% or more down—and turnaround times on traditional loans are slow. The solution? Consider an SBA 7(a) loan.
Borrower Equity and the SBA 7(a) Loan: What You Need to Know
Do you need money for your small business, but haven’t been able to get the funds you need from conventional sources because you’re short on equity or collateral? An SBA 7(a) loan may be the answer to getting the cash injection you need to start or expand your business.
The Best (and Worst) States for Getting an SBA 7(a) Loan
No matter where you live in the United States, you’re eligible for an SBA 7(a) loan to help start or grow your business. However, because SBA 7(a) loans are made by lending partners and not directly by the U.S. Small Business Administration, many people assume some states offer the lion’s share of
How Do I Get an SBA 7(a) Loan with Bad Credit?
Can bad credit keep you from getting an SBA loan? Not always. But because most traditional lenders will require a personal credit score of around 700, you will likely need to first build your credit into a good shape before applying for an SBA 7(a) loan.
Can You Use an SBA Loan to Buy Part of a Business?
Unfortunately for borrowers, SBA 7(a) loans cannot be used to purchase part of a business. Partial equity, earn outs, and employment arrangements are also generally prohibited.
Can You Use an SBA Loan to Buy an Online Business?
Online and fully remote companies are just as eligible for SBA loans as their traditional counterparts. However, they still have to prove that they have what it takes to qualify.
The Top 5 Best Working Capital Loans for Small Businesses in 2018
Working capital is essential for any functioning business; without enough of it, business owners can’t afford to pay their employees, fill orders, or even keep their lights on. Even if a business has thousands (or millions) in unpaid invoices, if they don’t have enough cash to operate, they can easi
Can You Use a 401(k) as an SBA Loan Down Payment?
If you have a 401(k) account or another approved tax-deferred retirement account with at least $50,000 in it, you may be able to use those funds as a down payment for your SBA loan.
Getting 100% Commercial Real Estate Financing With An SBA 7(a) Loan
While most forms of SBA 7(a) loans require at least 5-10% down, some lenders are now offering 100% commercial property financing with SBA 7(a) loans. That means that, if they qualify, a borrower doesn’t have to put anything down to acquire a commercial property with a 7(a) loan .
What Are The Best Franchises to Start With an SBA 7(a) Loan?
While you might already know that SBA loans are available to many franchises , you might not know how they stack up against each other. In this article, we’ll take a look at some of the most successful franchises that can be funded with SBA loans and compare their performance based on their loan
Are SBA 7(a) Loans Assumable?
Fortunately for borrowers, SBA loans, including the SBA 7(a) loan , are fully assumable with SBA approval. However, if you’re selling your business, getting approval from the SBA for another borrower to assume your loan can be somewhat complex. In particular, the SBA will look to ensure that the ne