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.
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, including marketing, employee payroll, and other short term expenses. Working capital loans are not used to fund fixed capital, such as heavy equipment, real estate, or other long term assets.
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 (EWCP) 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 is a permanent SBA 7(a) program. It supports small businesses that are at least 51% owned by a veteran or Active Duty service member, or by their 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 7(a) Loan Interest Rate?
Interest rates for the SBA 7(a) loan depend on the amount of the loan. From there, they’re divided into two groups: those with a maturity of less than seven years, and those with a maturity of more than seven years.
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 $350,000, and an Express Loan may ultimately be more expensive for y
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. Much of the process depends on the individual lender, and working wit
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 large real estate and land projects might find what they need in the SBA 504 loan program. The 504/CDC loan program was created by the SBA in order enable businesses to complete projects much larger than what they would be able to accomplish with other loan
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.
Understanding the SBA 7(a) Loan Fees: Both for Borrowers and Lenders
For loans with terms of over 15 years, prepayment penalties are imposed by the SBA. The penalty only applies to the first three years, starting at 5% of the outstanding balance. Each year the penalty declines; so in the second year, the prepayment penalty is 3%; and in the third year, it reduces to
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. New office building construction can be more than $150 per square foot, depending on where you’re located.
Steps to Getting an SBA 7(a) Loan to Open a Retail Store
In 2015, retail and food services sales accounted for $5.35 trillion in total sales. This means that retail businesses are successful, and that funding is available for retail store owners. So, what are your options for funding?
Using the SBA 7(a) for a Retail Store
Funding a retail business can be very complex: from physical location to inventory, it requires planning and often funding from outside sources. If you can’t “bootstrap” it with your own capital or secure a traditional loan, an SBA 7(a) loan may be the solution.
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, guaranteed up to $3.75 million for loans of $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
In the United States, the daycare industry is expected to be one of the fastest-growing industries through 2020. If you’re ready to take on a business mortgage, the SBA 7(a) loan might be your path to starting a preschool.
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) for a Restaurant
New and existing restaurants can both benefit from an SBA loan. Here at SBA7a.Loans, we specialize in helping food service businesses find the funding they need for real estate, equipment , working capital, and more.
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. Because they're often seen as high-risk, make sure you’re getting the best possible loan terms from your SBA lender.
Using the SBA 7(a) for a Self-Storage Facility
Self-storage revenue in the United States is projected to grow at an average annual rate of 2.9% through 2020. Growth is good news for lenders and borrowers, and now might be the time to take on a business mortgage through the SBA loan program.
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) 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. When you work with SBA7a.Loans to get financing for your hotel, we’ll connect you with the best nearby lender with experience i
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
SBA 7(a) Loans for Trucking and Transport Companies
Right now, there are approximately 500,000 trucking companies in the U.S., employing 3.5 million people and generating nearly $700 billion in revenue each year. Between 2006 and 2015, trucking and transport companies took out more than $774 million in SBA 7(a) loans, with an average loan size of $10
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?
Right now, there are over 230,000 medical practices in the United States, and if you’re a doctor looking to start, purchase, or expand your medical practice, an SBA 7(a) loan could be the perfect choice. SBA 7(a) loans are available for all kinds of medical practices, including physical therapy
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 . SBA Microloans are ideal for small startups, borrowers with limited collateral, or those who just need a small financial boost to get through a rough period in th
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. For example, if a business was being sold for $6 million, and the buyer only had $5 million in SB
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 a Non-U.S. Citizen Apply for an SBA Loan?
If you’re not a U.S. citizen, can you still qualify for an SBA loan for your small business? The answer is yes— but not in all cases. In general, legal permanent residents (LPRs), also known as green card holders, can qualify for SBA financing . However, if a borrower is not a legal permanent res
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.
What's the Difference Between an SBA 7(a) and a 504 Loan?
Thinking about the SBA 7(a) versus the SBA 504 loan for your commercial real estate project? It makes sense -- both are government-backed loan programs that give small business owners and lenders the opportunity to meet goals, large and small. Each loan has a specific set of requirements and unique
SBA Loan Requirements: Credit Scores
If you’re considering applying for an SBA loan , like the SBA 7(a) loan , having good credit is a must. However, not every SBA loan requires a borrower to the same credit score, or range of scores, to be eligible . In this article, we’ll pick apart the most popular kinds of SBA loans and the cred
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
At SBA7a.Loans, we specialize in helping business owners of bars and clubs finance their growth. Whether you have a new business or a seasoned establishment, we can connect you with the perfect SBA lender.
Using the SBA 7(a) Loan for a Bed and Breakfast
Like much of the rest of the U.S. economy, the bed and breakfast (B&B) and hostel accommodations industry has experienced a rebound. The fully recovered unemployment rate means more expendable income for Americans, and more money within the reach of small business owners.
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 a high-risk industry, meaning that they are far less likely to approve loans for restaurant owners. So, how do you 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
Right now, there are about 82,000 beauty salons in the U.S., generating approximately $20 billion in revenue each year. From 2006-2015, beauty salons across the country took out more than 9,000 SBA 7(a) loans , with a total loan amount of more than $1 billion, and an average loan size of around $11
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 the Federal Reserve's Prime Rate Hike Means for Small Business Owners
In December 2017, the Federal Open Market Committee (FOMC) voted to raise the Federal prime rate from 1.00 - 1.25 percent to 1.25 - 1.5 percent. Any decision to increase interest rates has an effect on business owners. Small business owners must be especially vigilant about any source of increased
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?
In 2017, the marina and boatyard industry generated approximately $5 billion in revenue and employed more than 35,000 people across the United States. If you’re interested in purchasing or expanding a marina or boatyard, or refinancing debt on a marina or boatyard that you already own, an SBA 7(a
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 January 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 acquisiti
SBA 7(a) Loans for Manufacturers
In the United States, the manufacturing industry employs more than 12 million people— and produces nearly 20% of all the world’s goods. If you own and operate a manufacturing company, and you want funds to expand your firm, build a new headquarters, acquire a competitor, or even refinance your busin
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. You might simply have different goals, or the partner may want to retire, move to a new location, or shift their career into a new industry altogether. But, whatever the reason, buyin
SBA Loans for Plumbers
The U.S. plumbing industry generates more than $100 billion in revenue each year, and employs nearly 500,000 Americans, making it an essential facet of the U.S. economy. If you own a plumbing business, and you want to expand your company, buy a competitor, or refinance business debt, getting SBA fi
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?
Americans spent over $3 trillion on healthcare in 2016 alone, making it one of the largest industries in the entire country. And, while much of the industry is dominated by large public and private hospitals, as well as doctors’ offices , smaller, private medical centers also occupy an important ma
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: Which SBA Loan is Right 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
In 2017, laundromats and dry cleaners generated $14 billion of revenue and employed nearly 200,000 workers across the U.S. While the industry has faced serious threats due to shifting consumer preferences and an increase in in-home laundry machines, there’s still a huge demand for laundry and dry cl
What are SBA International Trade Loans?
SBA International Trade Loans (ITLs) are a form of SBA-guaranteed export financing available for businesses who are involved in producing goods in the U.S. that will be involved in international trade, or to support businesses that have been negatively affected by international trade in recent yea
SBA 7(a) Loans for Landscaping Companies
There are nearly 500,000 landscaping businesses in the United States, producing more than $60 billion in revenue each year and employing almost a million people. From 2006-2015, landscaping firms around the U.S. took out more than 8,000 SBA 7(a) loans , with a combined loan volume of almost $1 bill
SBA 7(a) Loans for Liquor Stores
There are nearly 50,000 wine, beer, and liquor stores througout the United States, generating an annual revenue of approximately $58 billion. Between 2006 and 2015, liquor stores took out more than $2.3 billion in SBA 7(a) loans, with an average loan size of $366,000. If you’re looking to purchase,
SBA 7(a) Loans for Tax Preparation Firms
With more than 121,000 tax preparation firms in the U.S. generating more than $10 billion in annual revenue, it’s safe to say that the tax prep industry is booming. Plus, SBA loan repayment data from the years 2000-2016 places three tax preparation firms as among 50 the best franchises to own in the
SBA 7(a) Loans for Insurance Agencies
Right now, there are more than 1.1 million insurance agents, brokers, and affiliated employees in the United States— all working as part of an industry that wrote more than $1.2 trillion in premiums in 2017 alone. So, if you’re an insurance agent interested in starting, purchasing, or expanding an i
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
In the United States, the heating and cooling (HVAC) industry generates approximately $93 billion in revenue each year, and employs more than 50,000 workers across the country. If you own or operate an HVAC business and you need funding to maintain or grow your firm, getting an SBA loan could be a
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.
Are SBA 7(a) Loans Available for Franchises?
If you have a franchise, can you get funding for it with an SBA 7(a) loan ? The answer is yes; in fact, about 10% of all SBA loans go to franchises. Despite that, not all franchises are available for funding through the SBA.
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?
Gyms and health clubs across the U.S. produced approximately $80 billion in revenue in 2017 alone. And, if you’re a gym or health club owner, you might be looking to get a gym equipment loan through the SBA. Fortunately, the SBA 7(a) loan program, as well as the SBA 7(a) Express Loan both permit
Can You Get an SBA 7(a) Loan for a Funeral Home?
In 2017, the funeral home industry employed approximately 120,000 people across the United States, while taking in more than $15 billion in revenue. If you currently operate a funeral home or are considering opening one, the SBA 7(a) loan could be a fantastic option. In addition to funeral homes,
SBA Loans for Computer Repair Companies
In 2017, the U.S. computer and electronics repair industry took in $18 billion of revenue and employed nearly 140,000 workers across the country. While the industry has been challenged by the reduced costs of electronics, companies in the right market can still take in a big profit. So, if you’re lo
SBA 7(a) Loans for Builders and Construction Companies
With more than 650,000 construction firms in the U.S. building more than $1 trillion of buildings each year, it’s never been a better time to be in the construction industry. If you’re interested in expanding a construction company that you currently own, acquiring an existing construction business,
SBA 7(a) Loans for Dental Labs
Dental labs are an approximately $32 billion global industry— and the market is growing larger each year with the increase in oral diseases and a greater need for dental prosthetics for older patients. If you own or operate a dental lab, and you’re looking for a source of financing to expand your bu
Can You Get an SBA 7(a) Loan for a Dental Office?
There are nearly 200,000 dentists across the United States, many of whom are looking to start, expand, or purchase a dental practice. If you’re one of them, an SBA 7(a) loan could be a great way to get the financing you need. SBA 7(a) loans are available for all kinds of dental practices, includ
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 7 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. In addition, due to the SBA’s ban on employment arrangements, the seller may not stay on as a director, officer, sharehol
Can You Use an SBA Loan to Buy an Online Business?
Do you need to have a physical office or sell goods and services in person to qualify for an SBA loan? The answer is no. 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 qualif
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 Downpayment?
Getting the money for a down payment can be one of the most challenging parts of applying for an SBA loan . However, 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 on an 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