Understanding SBA Loans
Updated: Jun 19, 2020
The Small Business Administration (SBA) works with lenders to provide loans to small businesses. The SBA sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions and reduces risk for lenders, making it easier for them to access capital. In turn, that makes it easier for small businesses to get loans.
A Small Business Administration loan is a long-term, low-interest small business loan partially guaranteed by the government. Under the SBA loan programs, small business owners can borrow money for nearly any business purpose, including adding to working capital, purchasing inventory or equipment, refinancing other debts, buying real estate or even funding the acquisition of other businesses.
Here’s the low-down on qualifying:
Many businesses, including small or new ones, can qualify for an SBA loan! When applying for an SBA loan, credit score is most important. Unlike other financing options, SBA loans require more time, attention, and documentation, which means it isn't a loan you will receive overnight.
Most businesses who qualify had:
Annual Revenue: $100K
Credit Score: 680
Time in business: 2 Years Minimum
To learn more about SBA loans, find out what documents you need to apply, and to submit an application visit our SBA Loans Page.