SBA LOANS

An SBA loan puts a government guaranty behind a bank’s money. That guaranty is why an SBA lender will go longer on term and lighter on collateral than they would on a conventional deal. It is the reason acquisitions and owner-occupied real estate get financed at businesses a conventional credit box would decline.

LET'S BUILD YOUR FUTURE

OVERVIEW

What Is an SBA Loan?

The SBA does not lend you money. It guarantees a portion of a loan made by a participating lender, and that guaranty is what changes the terms. Less risk to the lender means longer amortization, a lower down payment, and no balloon.

The trade is paperwork and time. SBA files carry more documentation and more scrutiny than a conventional loan, and they take longer to close. You are buying better terms with patience.

SBA FINANCING FITS THE BIG, SLOW-MOVING DECISIONS

Common Use Cases

Buying a business or funding an expansion

Buying the building you operate out of

Refinancing business debt into a longer term

Working capital you need to carry for years, not months

Buying out a partner or funding a succession

SBA FINANCING

Types of SBA Loan Programs

SBA 7(A) LOANS

The 7(a) is the workhorse. It funds almost anything: an acquisition, working capital, a refinance, owner-occupied real estate, or a mix of those in one loan. Loan amounts go up to $5,000,000. Terms run to 10 years for most uses, up to 25 with real estate.

SBA 504 Loans

The 504 funds fixed assets: owner-occupied real estate and heavy equipment. It stacks three pieces, a bank loan, a CDC loan backed by the SBA, and your equity, usually in a 50/40/10 split. The CDC portion carries a fixed rate for the full term, which is the reason most borrowers choose it.

SBA EXPRESS LOANS

SBA Express trades size for speed. The cap is lower, at $500.000, and the lender has delegated authority, so decisions come faster than a standard 7(a). Same SBA rules, shorter runway.

Key Considerations Before Applying

Start earlier than you think you need to. SBA files run 30 to 90 days from application to funding, and that clock does not start until the file is complete: three years of business and personal returns, interim financials, a debt schedule, and a use-of-funds breakdown that ties to the dollar.

Eligibility is not a formality. Size standards, the credit-elsewhere test, and use-of-funds rules kill deals late when nobody checked them early. That check takes an hour at the front end.

LET'S BUILD YOUR FUTURE

HOW DOES IT WORK?

How We Help

We check eligibility first, before anyone spends a month on a file that was never going to work. If SBA is the right path, we build the package the way SBA lenders want to receive it and take it to the ones that actually fund your deal type. Not every SBA lender does acquisitions. Not every one does your industry.

Then we work the file through underwriting and closing. Most SBA delays are document delays, and that is a solvable problem.

WHAT’S NEXT?

Contact Us

SBA approval comes down to preparation. The file that closes in 60 days and the file that dies at month four often start out looking identical. The difference is what got caught at the beginning. Send us the deal before you send it to a bank.

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