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The SBA loan program is a great solution if you have a 680 ++ FICO score and are looking for a significant amount to grow your business since we approve a loan amount up to 20% of your gross revenue.
When you work with a preferred lender, the SBA is a great solution if you are looking for small monthly payments since this loan goes out ten years.
The Small Business Administration is a Federal Agency that partially guarantees these loans.
*with all paperwork submitted.
The biggest deterrent is the requirements. They are tough. There is a ton of paperwork. My guesstimate is that you will invest hours of time to gather it all together.
On top of that, you must meet the underwriting criteria of the lender. It is not uncommon for the funding to take up to a few months. Combine that with the fact that certain businesses are ineligible. We offer a quick start loan, with 5-minute pre-approvals and funding in weeks and not months.
This loan does have Personal Guarantees (PG) – that is how you receive the low-interest rate. You must have personal collateral and assets to pledge plus have “skin” in the game. Assets can include residential or commercial real estate, equipment, and cash equivalents like money market, savings account, or checking account.
SBA debt consolidation loans are a great option. Imagine significantly reducing your payments. Those massive, unwieldy debts that crush cash availability and make day to day operations challenges can be a thing of the past.
If you need working capital and hate the short-term and high-interest loans, this is for you. Imagine if you can qualify for an SBA and deal direct with an SBA lender and not have to go through the challenge of applying directly at a bank. We all know banks do not make it easy.
Here are six quick ways you can use the capital provided by an SBA loan. They include:
Here is some unsolicited advice. In my opinion, it is wise to look to see what the Fortune 500 companies do with their debt. Most of these companies look to replace long-term debt with shorter term debt vehicles.
There are several reasons. Primarily when they start, they tend to secure debt financing in the form of long-term bonds. This strategy is not available to the small business owner.
Since they can raise capital through the debt (bond) markets, they do not need to go to banks per se. However, the borrowing parallel is still the same.
Big corporation borrows long term and then look to replace that capital with short-term capital. Why do they do this?
For what it is worth, in my honest opinion, it does not make sound financial sense to pay for an asset over the long-term that you no longer use today.
You buy a piece of equipment for your business. The lifespan of the equipment is 3 – 5 years. Do you take out a 10-year loan to finance it?
Maybe, maybe not. The reason “for” are apparent. Small payments,cash management or managing cash flow. On the flip side, you might be paying a higher dollar rate and amount. Hence this is why the Fortune 500 companies retire their long-term obligations. Often it is at a much higher rate.
The reason you do not want to borrow for longer than the life of the investment is that you will be paying for it long after you get rid of it.
Most business owners that I speak with will present me with this argument. If I have a 10-year loan (repayment term) versus a shorter-term loan, my payments are much lower. I agree, and indeed they are.
I would counter and suggest that a shorter-term loan tailored to meet that expense, in fact, maybe less expensive over the long term.
Naturally, you need to be able to meet your cash flow requirements and to service the debt from the loan proceeds as well.
Let’s use this example. You need $200,000. Your monthly payment for a 10-year SBA loan with an interest rate of 6.75% and APR of 8.26% is $2,296 (275,520).
Let’s assume that you can get the same $200,000 at a rate of 1.35 for 24 months. Your total payments are $270,000. Of course, that monthly payment will be significantly more. However, you save over five thousand dollars, plus you are in a position to borrow again if you need more capital.
My point is that you need to understand your numbers. Just because a rate is lower with a longer term does not mean it is a better option for your business.
In fact, even with the higher monthly payment and higher rate in the loan example above, once you have repaid fifty percent of the loan you are eligible to borrow more.
Just to help you in your quest to secure the capital you need, let me put this in perspective.
Funding Amount $100,000 up to $350,000 for working capital
Funding Amount $350,000 up to $5M to purchase Real Estate for the Business
As soon as we receive ALL the above, we will have a pre-approval for you quickly. Incomplete submittals will create a delay in pre-approvals. We will then reach out to you with additional items needed. If all the paperwork is submitted, it can take seven business days to fund. Funding typically is completed within 4 to 6 weeks.
Call us at 888-456-9223 for a free consultation to find the best fit for your small business loans at the best rate and terms.
Do you know the four critical steps to apply for a Small Business Administration loan offered by banks and alternative SBA preferred lender and lenders like Sunwise Capital through the Small Business Administration?
If not this guide will give you an overview of the process.
Here are the multiple steps you need to take to apply for the SBA’s most popular kind of SBAnmbusiness loans: the SBA 7a loan program.
For the SBA’s financial partners to approve your small business loan application, you will, of course, need to provide ample proof that you can comply with the terms of your business loan agreement. For you to do that, you need the following:
Aside from these requirements, your company also needs to fit in certain categories. First off, is your venture classified as a small business? According to the U.S. Government, this means that your company should have no more than 500 employees.
Plus, to qualify for an SBA, your annual revenue should not exceed $7.5 M. You need to provide proof that you will be using the loan for general business purposes.
With your requirements at hand, the next thing you must do is to find the banks or lenders that offer small business loans through the SBA program.
Sunwise Capital has a direct relationship with a nationwide top 5 preferred SBA Lender. This lender specializes in SBA 7(a), and SBA 504 loans. There is no shopping. You are dealing direct.
The SBA website has an easy-to-use bank search function that you can use for this purpose. There are more than 100 small business lenders listed.
It would be credit wise to work with a lender like Sunwise Capital who is known to provide small business loans with the SBA. You will have a smoother and faster application process and a higher approval rate.
We are pros at working with small business owners like yourself. We see hundreds of loan applications per month.
When you go to the bank, you start dealing with the Business Account Manager. If you are lucky, this is someone who is out of school for at least a year. They never owned a business, and there is less of a chance they understand your business.
Their job is to tell you “yes,” we can get you approved. That is so you do not get aggravated and close your account and move it to a competitor’s bank.
According to a study done by Harvard University, the average business owner will visit 2.8 banks trying to get a loan.
The coup de gras, is that if you return to the original banks where you started. You guessed it; you have a new account manager.
How do I know this to be true? Over twenty years as a small business owner and entrepreneur. I can tell you personally, “Been there, done that.”
You need to put together different documents that will prove that you are qualified for the SBA loans that lender of choice offers.
Sunwise Capital will work with you and provide you with the necessary list of documents and help you each step of the way.
You will also need a separate set of documents if you are planning to acquire an existing business.
In most cases, you also need to present a comprehensive business plan, which will outline your financial projections for the next two years.
The forms are not like March Madness and filling out your brackets.
The SBA requires applicants to fill out forms that contain information about the business and the function they intend the funds to play.
Do you need to get copies of these forms? You can either go to the SBA directly or Sunwise Capital if you want a hassle-free experience.
Once you have the documents completed, you get to speak with your small business lender.
If you do not want that hassle, at Sunwise capital, we can get you a pre-approval in under 10 minutes. Then if it makes sense, you fill out the complicated paperwork.
Most applications for small business loans with the banks take anywhere from one to two weeks for that pre-approval and many more weeks for funding.
Upon approval, you will undergo a closing process, the length of which varies depending on the terms of your loan. It is not unusual for the banks to take up to ninety days from start to finish.
NOTE: There is a huge advantage of working with a top alternative lender like Sunwise Capital.
If you do not meet the requirements for the SBA loan or you need your loan to fund quickly, you can get approved in 24 hours with us.
We have all the information you need to get a small business loan for your business up to $2M.
Getting approvals for your small business loans are what you want to get when you ask for it. Unfortunately, it is not that easy, especially when trying to secure Small Business Administration Loans.
Virtually all businesses want or need more capital. This need for money is especially true with small businesses striving to survive alongside the big and mature competitors in its industry.
Whether your goal is a start-up, open a franchise or to grow and expand your existing business, it is worth knowing and learning about SBA Loans as a means of financing your business venture.
Raising capital is a primary business function that helps in the financial management of your company. Having knowledge of what SBA Business Loans offer is beneficial for survival in the dynamic world of business.
SBA Business Loans are one way to raise capital targeted for small businesses. The Small Business Administration guarantees the SBA Loans. However, they do not lend the money directly to you.
The Small Business Administration provides a financial backstop to the lender. The SBA guarantee a portion of the loan. They are a government agency. The SBA aims to hit two birds with one stone.
First, by supporting the needs of small businesses in need of financing.
Second, by reducing the risks of the small business lenders, such as micro-lending institutions, local banks, and community development organizations, who administer the lending.
SBA Loans are an alternative for those ineligible to get a loan directly from traditional bank lenders. The bank may pass on your loan if they perceive too much risk.
What the SBA offers is an opportunity for the bank or lender to accept and approve your loan. They are willing to do this when the SBA is guaranteeing a percentage of the loan in the event of a default.
These SBA loans are your target if you want a low-interest rate and varied lending options for your small business or non-profit organization.
If this sounds appealing, then getting that approval should be worth a try. Here are the basics.
1. The General Loan or 7a is the most common loan. A start-up company or small business to support its operations can use it. It can also be utilized by an existing and established businesses for further growth, for working capital, inventory, equipment and real estate. The maximum loan amount guarantee is up to $5 million or 75% of the total loan amount (whichever is less), and the loan terms can range from 10 to 25 years.
2. The SBA Microloan Programs originate from not-for-profit community-based organizations with experience in lending. This program is structured for small businesses and for nonprofit child care centers that need funding.The minimum commercial loan is for $35,000. Please bear in mind that this SBA loan is not allowed to consolidate debt or to purchase real estate.What this accomplishes is it does open the door for those that couldn’t meet the credit standards from traditional lenders. If you have bad credit or less than perfect personal credit, check with your bank or lender to see if they will consider an SBA Loan with bad credit.
3. The Real Estate Loans or the SBA loan CDC/504 provides financing for buisness real estate loans. This 504 Loan is the SBA loan to choose if your business is looking for growth and expansion.
4. The Equipment Loans or the SBA loan CDC/504 provides financing for equipment as well as real estate. It is the same as above.
5. The SBA Disaster Loan is when a company, a non-profit organization, or a homeowner experiences damage to real estate, property, equipment, or inventory from a catastrophe or an unfortunate natural event. It is provided to assist in repair or replacement of the damaged item or property. More recently think the PPP loan.
6. The SBAExpress Program is a specialized SBA loan, for amounts up to $350,000 or less, that offers express loans that offer fast processing.
7. CAPLines is an SBA loan that provides a short-term credit line which is a business line of credit with a guarantee of up to $2 Million. It specializes in several other kinds of SBA loans depending on the business cycle or purpose of the loan.
8. The HUBZone Program is an SBA loan designated for rural and urban development. There are grants, federal or state tax breaks, and other incentives that come with this SBA loan. One qualification, however, is your business’ ability to create new jobs in the community.
The general features of the SBA Loans include requiring your business to be in existence for at least two years. It must have minimum annual revenue of $50,000 and a 640+ FICO to be eligible for the loan. Moreover, a business that has filed for bankruptcy can be provided a loan after three years after the filing.
The SBA Loan is not the easiest way to raise the capital required by your business, but it is one option that will help you get the necessary financing when all the other alternatives may not be at arm’s length.
Sunwise Capital stands to help you secure the financing you need. You can speak to an underwriter directly to understand your small business loan options and get the help you need to understand the alternatives available to you.
SBA lending can be summed up in one word, “optimism.” Small businesses and the individuals that own them are the backbones of the American economy. Whether it is an SBA loan for women or minority-owned businesses, the SBA stands to back these loans.
We support all American business and their owners.
The U.S. Small Business Administration or SBA gives business owners and merchants the opportunity to borrow money. This opportunity comes in the form of SBA loans.
The money lent by the SBA bank or small business lender may is for any approved business purpose. It must be used 100% in the company.
SBA stands for Small Business Administration. It is a federal agency. Its goal is to help and empower entrepreneurs. It enables them to take their business ventures to the next level. It does this by offering different commercial loans. These SBA loans are advantageous to business owners who need a little help with their finances.
Typically, the SBA loan is for growth or expansion. The issuing bank must initially approve the SBA loan. The business owner must apply for a loan according to the SBA loan program requirements.
SBA loans are not implemented and provided by the Small Business Administration itself. These SBA loans are offered and processed by their lending partners.
The SBA loans utilize federal finances to guarantee a certain portion of business owners’ business loans. As a result, the banking institutions are more inclined to approve applications from small-scale entrepreneurs. In a nutshell, the SBA minimizes the risks for small business lenders. Remember, the SBA does not a lender directly, but it makes the approval process easier and smoother by reducing potential hazards that usually prevent commercial loan lenders from dealing with entrepreneurs.
Its main advantage is the fact that business owners can use it to fund virtually any kind of business need. Most business owners often use the money that they get from SBA loans to increase their capital, refinance debts from other institutions, purchase better equipment and machinery, and fund acquisition of competing businesses to name but a few.
The payment terms offered by SBA loans are also better than the usual bank small business loan. Most entrepreneurs can take advantage of the SBA loans’ usually have low down payment options.
Payment terms are also longer, and interest rates are known to be much less vs. other small business loans.
What’s the downside? Completing the loan application process is usually longer and more tedious than the standard loan. That is because you need to file a separate set of requirements for the SBA. As a result, the time spent doing paperwork is longer.
When dealing with the traditional lending institutions, the time spent waiting for your loan application approval is also quite a bit longer. You could easily be looking at 90 days if not more.
When applying for an SBA loan, consider three things – your business objectives, the size of your business, and the length of time that your enterprise has been in operation.
The two most popular kinds are the SBA 7(a) loan and the SBA CDC/504 loan.
The SBA 7(A) is the more traditional small business loan.
The SBA CDC/504 loans work best for entrepreneurs who need funding for general business processes, like purchasing fixed assets, including machines or real estate.
The SBA also offers a Microloan option, which perfectly suits business owners who need no more than $50,000.
To know which kind of SBA loan best suits your needs and find the SBA loan options that offer the best terms, seek advice from local bank loan supervisors, or qualified business loan lenders like Sunwise Capital.
Aside from helping you determine which SBA loan will work best for your business, they can also assist you through the loan application process and the best loan type.
Sunwise Capital can also provide you the assistance and information that you need whether you are planning to apply for an SBA loan, one of our term loans, unsecured loans or our merchant cash advances.