SBA Loans
Details for SBA Loans:
An SBA loan is a business loan that is guaranteed by the U.S. Small Business Administration (SBA). Small business owners can use these funds in a multitude of ways with the aim of business growth through the SBA 7(a) or through the SBA 504 loan program.
The SBA guarantees a portion of a loan that is acquired through an SBA approved lender.
SBA loans typically can range from around $200,000 up to $22,000,000. The term of the loans can also range from 5 to 25 years depending on the use of proceeds. The interest rates on SBA loans can be anywhere from mid 3% range to the low 8% range, depending on the exact details.
SBA Loans & Conventional
SBA 504 loan: Helps with renovation of commercial real estate; new construction; the acquisition of commercial real estate; refinancing; and/or heavy equipment.
SBA 7(a) loan: is a business growth injection and offers the most flexibility in use of proceeds. SBA 7(a) funds — purchase inventory, make upgrades, buy out a partner, you can refinance existing debt.
Documents Mostly Needed for an SBA Loan
Personal and Business Tax Returns
Business and personal income tax returns for the past few years, typically 3.
Personal Financial Statements
You will have to submit your personal financial statements if you own more than 20% of the business.
Profit and Loss Statements
Also called the ‘Income Statement,’ the profit and loss statement shows the company’s performance for the stated period.
Balance Sheet
The balance sheet is the statement of financial position for your business.
Collateral
You’ll be required to present documents proving ownership of the asset you will be putting up as collateral for the loan.
Other Documents
You may have to submit other documents such as, Articles of Incorporation, business licenses, franchise agreements or commercial leases.