What the Heck is an SBA Loan?
This article is part of SmartBiz Loans’ series to highlight topics of interest to our community.
Are you an entrepreneur? You might have heard that SBA loans are the best bet for small business owners who want to expand and save. But what the heck is an SBA loan? Here’s a quick snapshot of what you need to know.
Those Three Little Letters
The Small Business Administration (SBA) is a government agency founded in 1953 and created to support hard-working entrepreneurs and small business owners in the US.
So I Can Get an SBA Loan from the SBA?
The SBA does not actually make direct loans. The agency provides loan guarantees, promising the bank to pay back a certain percentage of your SBA loan if you are unable to.
Why Are SBA Loans the Best?
Four words: Low rates, long terms. This means payments will be small and won’t impact cash flow like large monthly payments can.
How Can I Use SBA Loan Proceeds?
- Working capital
- Equipment purchases
- Adding employees
- Increasing marketing
- Refinancing existing debt
I’ve Heard that the SBA Loan Process is Tedious.
Not anymore! SmartBiz offers a fast and easy way to get an SBA loan. Our online, streamlined platform makes the application process easy and cuts the funding time significantly, from months to as little as a week. Additionally, every borrower is assigned a dedicated Relationship Manager who provides “white glove concierge service” to assist with the process.
Don’t take our word for it! More than 100 happy SmartBiz customers have posted reviews on TrustPilot. With an overall score of “excellent” (9.5 out of 10) glowing comments include:
How About the Rates?
It’s tough to beat our low rates that range from an annual percentage rate of 7% to 8% for 10-year term loans, and from 6.5% to 6.9% for commercial real estate loans.
How Much Can I Borrow?
SmartBiz offers SBA loans up to $350,000. For commercial real estate financing, we offer financing of up to $5 million.
What do I Need to Qualify?
Businesses that qualify for a SmartBiz SBA loan typically have $50,000 to $5 million in annual revenue and 1 to 40 employees. Most are profitable and cash flow positive. All are able to show that they can afford to make our low monthly loan payments.
Requirements include a minimum of 2 years in business, no outstanding tax liens, no bankruptcies & foreclosures in the past 3 years, no recent charge-offs or settlements, no criminal record other than minor vehicle violations and current on government-related loans.
I’m Convinced; How Do I Get Started?
It’s easy! Simply create an account here. You’ll find out in about 5 minutes if you’re qualified for a low-cost SmartBiz SBA loan. BONUS: During prequalification, we perform a “soft pull” of your credit that will not impact your credit score or show up as an inquiry on your credit report.
We’re looking forward to working with you!