SBA Loans

What are SBA Loans?

At Small Business Funding, we come across almost every loan available to small businesses and their origin. The Small Business Administration was established after the Great Depression. The goal is to help small businesses that may have trouble finding the funding they need. Many small businesses can’t get the funding they need to stay open. SBA loans help you get the working capital you need to keep your business moving forward. When you apply for a loan from the Small Business Administration, you get more than just a loan. You also get sound business advice that you can use to improve your own business practices.

What Is an SBA Loan?

An SBA loan is special funding a small business can apply for that can be used for many different reasons. It can be used as working capital or to build up your inventory. These loans are offered by private lenders. Sometimes this may be a bank, but there are other financial institutions that also offer SBA loans. SBA loans are backed by the government. Because the government guarantees at least a portion of the loan, the lending requirements are not as strict and the repayment terms are much more relaxed.

How Do SBA Loans Work?

When you apply for an SBA loan, both the lender and the SBA must approve your application. There are several different types of SBA loans. Each one is different when it comes to how the money is released and also how the money is paid back. In some cases, you may get the money in phases instead of one large check. How the money is released may depend on how you plan on using it. You will need to disclose that information in your application.

How Does a Business Qualify for an SBA Loan?

If you want to apply for an SBA loan, you need to meet the definition of what a small business is. Your business must also operate in the United States and intend to turn a profit. In order for the SBA to offer a loan, it will look at the business’s other attempts at finding funding. If it has been denied by other lenders, the SBA may approve them for a small business loan.

Rates and Repayment Terms

SBA loans have much lower interest rates and more lenient repayment terms. Since the government is providing security for the loan, lenders can afford to take a few more risks when it comes to the interest rates it offers. Longer repayment terms make it easier for the business to take advantage of new opportunities without being financially strapped.

Applying for an SBA Loan

To start the process, you will need to fill out the application and provide all of the required documents to support your request. You will also need to provide a personal financial statement. If you are approved, you will receive a letter detailing what the terms of your loan will be. If you agree, you will need to wait patiently for the approval process to be completed. SBA loans are a great way for small businesses to move forward without putting themselves in financial peril. This kind of loan is designed to provide small businesses a hand-up instead of a handout. Because of how they are funded and how they are repaid, an SBA loan can provide just what a small business needs to grow and move forward.

Is an SBA Loan Right For You?


SBA Loans are often referred to as the “gold standard” for small business owners.

The reason –  It’s a government-backed loan, partially guaranteed by the Small Business Administration (SBA).  The SBA is an agency of the federal government.

While these loans are harder for small business owners to qualify for due to more stringent requirements, they are truly one of the best options for your business. 

Whether you’re looking to refinance debt, hire employees, purchase equipment, or you’re just looking to expand.


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What does an SBA Loan look like?

Timing: Your pre-qualification can happen in minutes. If you pass the initial requirements and secure a pre-approval, you can expect funding to take approximately 4 weeks, possibly longer.

Requirements: You must be in business at least 2 years, verified through two complete tax returns.

Your personal FICO score must be a minimum of 650 for ownership. 

And you’ll need to supply business financial statements including Profit u0026amp; Loss, Balance Sheet and potentially other documents as deemed necessary.

Process: You’ll need to submit your company’s 3 most recent months of business banking history along with our easy online application to find out if you qualify. 

Your dedicated SBF Funding Manager will take it from there!

Approval Amounts: $30,000 to $350,000

Repayment Terms: 10-year term, monthly payments. APR (Annual Percentage Rate) = 6.50% – 8.75% (Prime Rate + 2.75% to 3.75%)

Your SBA Loan can be used for purchasing inventory or equipment, refinancing, additional working capital, or expansion.

Business owner approved for SBA Loan

Qualifying For SBA Loan…

When the SBA guarantees your loan, your overall risk of lending to your business lowers and opens more doors to funding. Find out if you qualify for an SBA Business Loan – start your application!

If you don’t qualify for an SBA Loan, don’t worry.  Your dedicated SBF Funding Manager will discuss your options and work to get you the best rate and terms for your business.


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