What are SBA Loans?
The Small Business Administration (SBA) guarantees small business loans originated by approved lenders. The U.S. Small Business Administration is a federal agency devoted to promoting the growth and development of small businesses with lenders who provide small loans for business in their loan programs.
Unlike conventional loans, an SBA loan offers small businesses the opportunities to take the edge of beneficial terms as part of the SBA program, while removing some obstacles present in the traditional financing methods. You can get SBA financing at terms that are right for you, with GConnectPro.
Find out which SBA Loan is right for your business!
There is an SBA Loan for all your Business needs
Whatever your business needs, we can help you get an SBA Loan for that!
1. SBA 7(a) Loans
SBA 7(a) loans provide up to $5 million to small business owners. To qualify for financing, business owners need to have good credit and good business history. In most cases, borrowers will have to put up collateral in order to secure financing.
2. SBA 504 Loans
Small businesses that need long-term loans for fixed asset acquisitions should opt for the SBA 504 Loan program. They can get up to $5 million in financing. In most instances, owners are required to guarantee at least 20 percent of the loan. Get SBA 504 loan for startup today, with GConnectPro!
3. SBA Express Loans
The SBA Express Loan program offers a maximum funding amount of $350,000 and is great for those in urgent need of funding. They have stricter eligibility requirements and slightly higher interest rates. But, you can get small loans for business approved in a couple of days!
4. SBA Disaster Loans
If you find yourself to be a victim of a natural disaster, the SBA offers support in the form of Disaster loans. Businesses that can provide proof of the negative impact caused by a disaster can receive small loans for business for up to $2 million in financing with rates as low as 4 percent.
Most Common Uses of SBA Loans
Start-ups have unique needs, including research, employees, technology, and advertising expenses and thus require small loans for business. You can use SBA Loans if you need help financing your new business venture.
Buying a Business
SBA lenders often provide loans in the 7(a) program to business owners who can demonstrate that they're buying a potentially lucrative business. An SBA loan may be the perfect stepping stone for getting small loans for business.
You need cash to pay employees, buy and move inventory, and keep your business afloat. The SBA Loan program can get you the small loans for business you need to survive a rough patch or scale-up.
Whether you’re renting office space, buying a building, or planning new construction on vacant land, you can get small loans for business using the SBA Loans to help pay for the physical space that your business occupies.
If you can demonstrate that a particular equipment purchase is essential to the ongoing success or growth of your business, there's a good chance you can obtain an SBA Equipment loan to fund it.
A revolving line of credit, a commercial mortgage, even another SBA loan: if your business is being held down by bad loan terms, an SBA loan can help you refinance.
Who qualifies to get small loans for business?
Personal Credit Score
Time in Business
Over 2 years
Registered in the US
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SBA Loan - Documents Required to apply
- Your personal identification
- Certificate or license for the business
- Proof of business ownership
- Business financials, including financial projects
- Business Plan
- 2 years of Personal Tax Returns
- 2 years of Business Tax Returns
- YTD Balance Sheet
- YTD Profit & Loss Statement
- Debt Schedule
Other Requirements to qualify for an SBA Loan
- Down Payment: Every SBA loan requires a down payment but the amount can vary greatly depending on the type of business you’re funding. Small Business Administration loan payments are usually quite simple!
- Personal Guarantee: A Personal guarantee is a promise that if the business cannot repay the loan, you will then be personally responsible for payments of the small loans for business.
- Owner Guarantee: An SBA loan requires a personal guarantee from all owners with 20 percent or more ownership.
- Business Plan: A written business plan gives lenders an insight into your business structure, revenue projections, and market position.
- Debt Service Coverage Ratio: For all loans over $350,000, the SBA requires a Debt Service Credit Ratio of 1.15 or greater.
SBA Loan Calculator
You can use the calculator below to find out how much your Small Business Administration Business Loan will cost you!
SBA Loan Application Process
- Application form: Firstly, you need to fill out our online application form giving us basic details of your loan requirements to get the small loans for business.
- Advisor Call: Our Financial Adviser will call you to discuss your qualifications, loan options, and help you prepare for your loan application.
- Loan Application: Once all the documents are ready and qualifications are met, we’ll move on to the actual loan application with the lender.
- Loan Approval: Our Financial Advisers and Agents will keep in touch with the lender to ensure that your loan is approved at the earliest.