SBA is the Small Business Administration and they insure loans that are made through
lenders who do SBA loans.
These loans are set up to assist small businesses and are specifically set up for businesses that do business in the United States and operate for profit.
They can be used for real estate, equipment purchases, working capital or inventory.
The most common SBA program can be used for loans up to $5 Million.
Business loans can be very difficult to qualify for when you go to a bank. They have a tendency to put you under a microscope, looking for any reason to say no to your loan request.
SBA loans are there to help you avoid this and get the money you need. Because it was set up with the purpose of helping small businesses get access to loans when they need them, SBA loans make it more possible to get approved.
But not all SBA lenders are equal. Some have the same tough guidelines that make it so hard to get approved. But others work with you to find a solution.
We have had clients come to us after having their bank tell them they had to have 3 years of business taxes before they will even consider the loan application. We then took the loan to two of our SBA lenders who said they could work with the business projections which showed a strong trend of increasing income and profit.
Is SBA The Right Loan For You?
As with any loan program, you can’t be expected to know all the guidelines, benefits and restrictions of SBA loans. Therefore, if you need a loan for your business, you should call and speak to a loan officer who will ask you questions about your needs and your situation. He or she can guide you to find the correct loan program for you.