What You Need to Know About SBA Loans
Securing a Small Business Administration (SBA) loan shouldn’t feel like a maze. This guide simplifies the process—no jargon, no guesswork—just clear, actionable insights to help your business secure funding faster.
1. Is an SBA Loan Right for You?
SBA Loans Are Best For:
- Businesses with 2+ years of operations looking to grow
- Entrepreneurs seeking low-interest, long-term financing
- Expanding, purchasing equipment, or refinancing higher-interest debt
When SBA Loans May Not Be Ideal:
- Startups without financial history
- Businesses needing ultra-fast cash (SBA loans take time)
2. SBA Loan Basics – Key Facts
- Loan amounts up to $5M
- Term Length: 10-25 years
- Interest Rates: Lower than traditional loans
- Down Payment: Usually 10% (varies by loan type)
- Collateral: Required for larger loans
❌ SBA Myth: “The SBA lends the money.”
✔ Reality: The SBA guarantees the loan, but banks fund it.
3. What It Takes to Get Approved
To improve your chances of approval, make sure your business meets these key qualifications:
- Time in Business: At least 2 years (exceptions for strong startups)
- Annual Revenue: $100K+ (higher improves approval chances)
- Credit Score: 680+ (lower possible with strong financials)
- Cash Flow: Can your business comfortably repay the loan?
- Business Plan: If you’re expanding, the bank wants to see a strategy
💡 Pro Tip: Keep your financials organized and ready—messy paperwork leads to delays.
4. How to Speed Up Your SBA Loan Approval
Gather These Documents in Advance:
- Business Tax Returns (Last 3 years)
- Personal Tax Returns (Last 3 years)
- Year-to-Date Profit and Loss Statement
- Business Debt Schedule (if applicable)
- Personal Financial Statement (assets and debts summary)
Key Tip: The cleaner your documents, the faster your approval.
Want expert guidance? Talk to a Locality Banker today.
5. Locality Bank: SBA Loans Made Simpler
We take a personalized approach to SBA lending:
- Straight Answers. No Runaround.
- Personalized Service, Just a Call Away.
- Guidance from Start to Finish.
- Quick Response Times (Because We’re Local).
Questions? Ready to Apply?
Contact us today.
