Longer terms and lower rates

A better loan for your bottomline

Arguably the best funding option around, SBA loans are low-interest, long-term loans that are government-guaranteed. Though they can be difficult to obtain—and the underwriting process often takes weeks instead of days—the flexible terms and inherent value make these loans very attractive for any funding need.

Small Business Administration (SBA) loans are an excellent source of financing for business owners looking to grow an existing business or start a new one. Though these loans are not directly issued by the SBA, the federal guarantee—of up to 85%—allows lending institutions to reduce their risk and offer these loans to small businesses at much lower rates and for longer terms than other kinds of financing.

The flexible terms associated with SBA loans allows businesses to use this funding for a variety of business needs including, daily operations expenditures, new hires, equipment purchases, real estate, expansion, and debt refinancing. With funding of up to $5 million and terms from 7 to 25 years, these can provide businesses with a critical investment while offering a more manageable monthly repayment.

Though an SBA loan is great once you’ve managed to obtain it, the downside is that applying for it is typically a long and relatively arduous process.

The application requires a great deal of paperwork and has to go through underwriting approval twice: first with your direct lender; and then, with the SBA. Both institutions must approve the loan before you can be certain of securing your funds.

In order to complete underwriting on your loan, here are a few of the documents you’ll be asked to submit:

SBA borrower information form
Loan application history
Business certificate or license
Business lease
3 years of business tax returns
3 years of personal income tax returns
Personal history statement
Personal financial statement

Even with the long waits and document requirements, small business owners love SBA loans. The great terms, low rates, and more affordable monthly payments make these loans highly desirable for any discerning borrower.

SBA Loan Pros & Cons

General Loan Information