Every small business owner knows that his/her business will need capital to succeed. A great source of capital is an SBA Loan. The SBA is a federal agency that assists entrepreneurs and small businesses. The SBA itself does not lend money but rather facilitates loans through a network of partnering lenders.

Why is an SBA Loan So Appealing?

An SBA loan is appealing to a small business because it:

Lowers the risk for lenders thereby improving the chances for a business to get a loan.

Offers lower down payments so a business can keep more cash in the business.

Has less stringent requirements compared to conventional loans.
Comes with longer pay-back periods and lower interest rates than conventional loans.

Can satisfy many types of financial needs.

How Can an SBA Loan be Used?

There are several types of SBA loans. The most common SBA loan is the SBA 7(a) loan. It can be used for the construction of new buildings, fixed asset purchase and installation, inventory, supplies, raw materials, working capital, and refinancing debt.

What do you Need to Qualify for an SBA Loan?

SBA loans are only given to for-profit businesses, excluding lending, gambling, multi-level, and life-insurance businesses.

To receive approval for an SBA loan, you will need to provide:

Documentation on the articles of incorporation, licenses, or registrations that are required to operate in your state and industry, along with any lease documents.

A description of the business, its structure, and purpose as well as providing a copy of your business plan and financial projections. The lender will also ask for information about the business experience and backgrounds of the leadership team.

Information regarding personal and business creditworthiness, income tax returns, and bank statements.

Define the purposes of the SBA loan being applied for.

Seek Expert Financial Assistance

Contact Increase Lending for financial solutions to address your cash flow needs and growth goals. Our experienced financial professionals can help you secure funding to meet your business’s financial needs.