A Small Business Administration (SBA) Loan offers the cheapest capital available in the market with terms ranging from 6 to 25 years. On the other hand, an SBA loan comes with a complicated and extensive application procedure. At Fundela, we can simplify the process.
How to qualify?
Business size - You must meet minimum SBA standards for the size of your business. Requirements vary by industry type. Our specialists can help you find out if your business meets this requirement.
Owners Financial Commitment - As the owner of the business, you must provide proof that you have exercised all other options to secure financing.
Credit Worthiness - Both the owner and they’re should have a strong credit profile. A strong history of credit repayment goes a long way in securing an SBA Loan. Judgements and collections trigger an instant decline.
Collateral - Though collateral is not required for many SBA programs, lenders may require assets to secure larger loan amounts. The SBA does not guarantee the entire loan, the rest is on the business.
Location and Licenses - The business must be located and operating in the United States. These loans are not available for our Canadian clients. The business owners must have all required licenses specific to their industry.
Use of Funds - As part of your application, you must indicate how and when you intend to use the funds. Personal expenses are forbidden. All allocated funds must be used for approved business expenses.
When is an SBA the right solution?
SBA Loans are perfect for expanding businesses. This kind of capital is hard to come by and it should be utilized strategically. SBAs are perfect for large purchases of expensive assets, heavy equipment and real estate.
Expert’s Insight
Make sure you have all your ducks in a row before applying, even the smallest typo in your application will result in an instant decline that you will be notified off 4 weeks later. There is no reason to submit an application more than once.
Fundela can help you decide whether the SBA loan is the right fit for you and your business. Our team of experts will guide you through the application procedure and submit all the proper documentation to maximize your chances of securing the funds you deserve.
