SBA Loans
Borrow up to $5 million, use the funds for any business purpose, and secure the most competitive terms on the market with National Business Capital. Get fast and flexible financing tailored to your unique business needs, ensuring you have the capital to seize every opportunity and overcome any challenge.
How Do You Qualify for Business Equipment Financing?
1+ Year in Business
$500,000+ in Annual Revenue
A Small Business Administration-backed loan, or an SBA business loan, can help your business secure working capital to achieve various goals, such as expanding, purchasing or refurbishing equipment, acquiring new real estate, or refinancing an existing mortgage or agreement.
SBA loans are among the most desirable and sought-after business loans. Many small business owners apply for SBA loans before exploring other similar options. They offer lower interest rates and substantially longer repayment terms, providing the necessary funding without disrupting your cash flow.
While you can obtain SBA financing through both traditional banks and online lenders, these lenders do not take all the risk. These loans are guaranteed by the SBA, a branch of the government dedicated to fostering stronger small businesses.
One drawback of SBA loans through most lenders is the lengthy process, which can take up to eight months to complete. Banks thoroughly review loan applications, business plans, personal credit scores, and more before providing an answer. However, using an SBA loan to drive revenue in your business can significantly improve cash flow.
National Business Capital has streamlined this process to just 45 days! Through our network of lending partners, we can speed up the funding process to nearly half the time. We also simplify the long and complex procedure to make SBA funding much easier for you. With guidance from your Business Financing Advisor, you can even secure an SBA loan with a tax judgment.
What Do You Need to Qualify?
If you’re looking to use an SBA loan for purposes other than acquiring an existing business, here are the standard requirements:
Standard Requirements:
- 2+ years in business
- $500,000+ in annual gross sales
- 685+ credit score
Requirements for Purchasing an Existing Business:
- 10% down payment
- 680+ credit score
- Industry/managerial experience
- No criminal history (or the ability to explain misdemeanors on your record)
- No current federal debt
- If purchasing a franchise, a paid franchise fee
SBA’s Overarching Eligibility Criteria:
Your business, or the business you’re looking to purchase, must:
- Operate for profit
- Do business within the U.S. (or propose to)
- Have “reasonable” owner equity to invest
- Have sought out alternative resources, like personal savings and assets, before seeking assistance through the SBA
It’s important to determine if your business qualifies before sending an application. This way, you won’t wait months only to find out you were ten points off the minimum credit score requirement, and you can avoid wasting precious time that could have been spent running your business. National Business Capital can assist in determining your eligibility and streamlining the application process to help secure the funding you need efficiently.
SBA loans are among the most coveted financing options available to entrepreneurs due to their high borrowing limits and low-interest rates. SBA-sponsored lenders offer their financing products based on strict eligibility requirements, including high credit scores, extended time in business, and substantial annual revenue. If your organization doesn’t meet these criteria, you might find it challenging to qualify for some of the more substantial SBA financing programs. However, you might be able to reach approval with a more lenient option, like SBA microloans.
Advantages of SBA Loans
Longer Terms
- Build your business the right way, with term lengths ranging from 10-25 years. This allows you to manage your cash flow more effectively and plan for long-term growth without the pressure of short-term repayment schedules.
Prime Rate+
- Access the best SBA rates and terms available through one simple application. SBA loans typically offer lower interest rates compared to traditional business loans, making them an attractive option for business owners looking to minimize financing costs.
Express Funding
- Get streamlined funding on loan amounts of $350K or less. SBA Express Loans provide faster processing times, allowing you to access the capital you need more quickly. This can be particularly beneficial for urgent business needs or opportunities that require immediate funding.
Eligibility for SBA Loans
While SBA loans have stringent eligibility requirements, including:
- High credit scores
- Extended time in business
- Substantial annual revenue
If your business does not meet these criteria, consider more lenient options such as SBA microloans. Microloans are designed to help small businesses and certain not-for-profit childcare centers start up and expand. They offer smaller loan amounts and may have more flexible requirements.
National Business Capital can help you navigate the complexities of SBA loans and find the right financing option for your business. With expert guidance and streamlined application processes, you can increase your chances of securing the funding you need to grow your business.
Key Benefits of SBA Loans:
- High Borrowing Limits: Allowing significant capital to fund large-scale projects and expansions.
- Low-Interest Rates: Reducing overall borrowing costs and improving profitability.
- Flexible Terms: Customizable to fit your business’s unique needs and cash flow patterns.
Whether you are looking to expand, purchase new equipment, or manage cash flow, SBA loans can provide the necessary financial support to help you achieve your business goals.
Types of SBA Loans
Small Business Administration (SBA) loans come in a variety of types, each designed to meet different needs and circumstances for small businesses. Here are the three main types of loans offered by the SBA:
SBA 7(a) Loans
SBA 7(a) loans are the SBA’s most common loan program. They provide up to $5 million in funding for a variety of business purposes, including:
- Working capital
- Equipment purchases
- Construction/renovation
- Growth investments
Repayment Terms:
- Up to 25 years, depending on the purpose of the loan
SBA 504 Loans
SBA 504 loans are specifically designed to promote business growth and job creation. They can be used for the purchase, construction, or improvement of:
- New facilities
- Pre-existing facilities
- Pre-existing buildings
- Long-term equipment and machinery
- Land, streets, utilities, parking lots, and landscaping
Restrictions:
- Cannot be used for working capital, inventory, refinancing debt, or speculation/investment in real estate rental properties
SBA Microloans
SBA Microloans offer up to $50,000 in capital to qualified borrowers. They can be used for:
- Working capital
- Equipment
- Payroll expenses
- Any other business purpose except for paying existing debts or purchasing real estate
Repayment Terms:
- Typically up to six years
Key Benefits of SBA Loans
- High Borrowing Limits: SBA loans offer significant funding amounts to support large-scale projects and expansions.
- Low-Interest Rates: They generally have lower interest rates compared to traditional loans, reducing the cost of borrowing.
- Flexible Terms: The terms are customizable to fit the unique needs and cash flow patterns of your business.
Eligibility Criteria
While each SBA loan type has specific requirements, some general criteria include:
- Operating for profit
- Doing business within the U.S. or its territories
- Having reasonable owner equity to invest
- Having exhausted alternative financial resources before seeking SBA assistance
National Business Capital can help you navigate the complexities of SBA loans and find the right financing option for your business. With expert guidance and streamlined application processes, you can increase your chances of securing the funding you need to grow your business. Whether you are looking to expand, purchase new equipment, or manage cash flow, SBA loans can provide the necessary financial support to help you achieve your business goals.
How to Apply for SBA Loans
Applying for an SBA loan involves several steps and requires careful preparation to ensure eligibility and maximize your chances of approval. Here’s a detailed overview of what to expect during the application process:
1. Determine Your Eligibility
Before you begin the application process, confirm that you meet the minimum qualifications for an SBA loan. These generally include:
- Operating a for-profit business
- Doing business in the U.S. or its territories
- Having reasonable owner equity to invest
- Exhausting other financial resources before seeking SBA assistance
If you don’t meet these criteria, consider alternative financing options such as traditional bank loans, credit unions, or non-bank lenders.
2. Choose the SBA Loan That’s Right for You
Select the SBA loan that best fits your business needs. Consider factors such as:
- Funding amounts
- Repayment schedules
- Specific use cases
The main types of SBA loans include:
- SBA 7(a) Loans: Versatile loans for various purposes, up to $5 million
- SBA 504 Loans: For purchasing or improving facilities and long-term equipment
- SBA Microloans: Small loans up to $50,000 for working capital and equipment
3. Find an SBA Sponsored Lender
SBA loans are offered through a network of approved lenders, including major banks like Wells Fargo and Chase Bank, as well as non-bank lenders. Availability varies by state, so conduct thorough research to identify viable options in your area.
To streamline your search, consider working with a marketplace like National Business Capital, which can connect you with multiple lenders through a single application.
4. Submit Your Application
Prepare and submit your SBA loan application along with all required documentation. This typically includes:
- SBA-specific forms
- Three years of business and personal tax returns
- Business bank statements
- Business licenses and certificates
- Other relevant documentation
Double-check your application for completeness and accuracy to avoid delays.
5. Underwriting Process
The SBA underwriting process can take anywhere from 30 days to 6 months, depending on the complexity of your application and the lender’s workload. Be prepared for potential delays and resubmissions if there are errors or missing documents.
Tips for a Successful Application
- Ensure Eligibility: Verify that your business meets the SBA’s eligibility criteria.
- Gather Documentation: Collect all necessary documents and forms before starting your application.
- Research Lenders: Choose a lender experienced in SBA loans and familiar with your industry.
- Double-Check Details: Review your application for accuracy to avoid delays.
Conclusion
There is no one-size-fits-all SBA loan for every business. Carefully evaluate your options and consider your specific business needs to choose the best financing solution. With the right preparation and guidance, an SBA loan can provide the capital necessary to achieve your business goals, whether it’s expanding operations, purchasing equipment, or improving cash flow.
National Business Capital can assist in this process by connecting you with the right lenders and offering expert advice to navigate the complexities of SBA loans. By leveraging their extensive network and streamlined application process, you can expedite funding and focus on growing your business.
An SBA loan is an excellent way to finance your big business dreams. Whether you’re looking to start a business, expand one, or fund a special project, SBA loans offer the resources to do so, with generous terms that allow you to repay on an easy schedule. SBA loans also provide access to other resources, such as grants and tax incentives, so you can maximize the efficiency of your capital.
With SBA loans, you can make any idea a reality – from launching your dream startup to creating the perfect product or service.
Business Growth
- Buy new equipment or inventory
- Hire new staff
- Prepare for seasonal changes
Business Expenses
- Get extra working capital to manage payroll
- Bridge gaps in cash flow
- Pay bills
Business Opportunities
- Expand or open a second location
- Take on more clients
- Capitalize on bulk order discounts
Permissible Uses of SBA Loans
Small Business Administration loans can be used for “most” business purposes, including:
- Working capital
- Equipment
- Construction of buildings
- Purchasing land
However, there are restrictions on what SBA loans can be used for:
- Investment real estate (to sell or lease)
- Refinancing existing debt that would expose the SBA to a loss
- Paying delinquent taxes
- Relocating the borrower from a community where their departure would result in a significant increase in unemployment
Usage Distinctions Between Loan Types
- SBA 7(a) Loans: Versatile loans that can be used for a variety of purposes, including working capital, equipment, construction/renovation, and other growth investments.
- SBA 504 Loans: Restricted to “major fixed assets that promote business growth and job creation,” meaning they cannot be used for working capital, inventory, or consolidating existing debt.
- SBA Microloans: Ideal for smaller funding needs, up to $50,000, and can be used for working capital, equipment, payroll expenses, and more.
Choosing the Right SBA Loan
The “best” SBA loans are the ones that fit your business and where it’s headed. Carefully review the usage restrictions, terms, and interest rates before signing on the dotted line to ensure you can Grow to Greatness with as little friction as possible.
By leveraging the right SBA loan, you can achieve your business goals with flexible, low-interest financing and the support of the SBA’s extensive resources.
Why Choose National Business Capital for an SBA Loan?
Discover a World of Funding Options with National Business Capital
At National Business Capital, we streamline your search for business financing by centralizing all of your options in one place. With just one application, you can receive multiple offers, making it easier to find the best fit for your business needs.
Fast-Track the SBA Loan Process
The SBA loan application process is notoriously long, but our award-winning team can finalize it in as little as 45 days. If this timeframe doesn’t work for your goals, we can explore alternative options. Our team will negotiate on your behalf to tailor your contract to meet your unique needs, ensuring you get the best possible terms.
Expert Guidance and Custom Solutions
National Business Capital has the experience and creativity to keep your business moving forward, regardless of market conditions. Our extensive network of over 75 lenders and expert financing advisors work with you every step of the way to ensure you have access to the capital that best fits your business.
Your Partner for Future Growth
We look forward to learning more about your business and joining your journey. With National Business Capital, you’ll gain a financing partner for the future, ensuring your business has the capital it needs to seize every opportunity and grow without limits.
Benefits of Partnering with National Business Capital
- Centralized Options: One application, multiple offers.
- Fast SBA Processing: Finalize the process in as little as 45 days.
- Alternative Options: Flexible solutions tailored to your goals.
- Expert Negotiation: Personalized contracts to meet your needs.
- Experience and Creativity: Navigate any market condition with confidence.
- Long-Term Partnership: Access to a business lending marketplace built for entrepreneurs, by entrepreneurs.
Take the Next Step
With National Business Capital, you have the funding options, expertise, and support you need to grow to greatness. Apply today and discover how we can help accelerate your success with frictionless financing and expert advice.
Lowest Rates, Longest Terms, & Highest Amounts
Funding Amount
Up to $100MM
Repayment
Up to 25 years
Time to Fund
1 to 7 days
How It Works!
The funding you require to achieve your full potential is
just a few clicks away.
Complete our simplified application process in minutes and securely upload your business documents with no risk involved.
Review and compare your options with guidance from our experienced team, ensuring you choose the best fit for your unique situation.
Armed with your funds, you can confidently seize opportunities and overcome challenges.
Frequently Asked Questions
Simplified Qualification for SBA Microloans
Among all SBA loan products, microloans are the easiest to qualify for. Here’s why:
- Lower Credit Score Requirements: Most lenders accept applicants with FICO scores averaging around 575.
- Collateral or Personal Guarantee: You may need to provide collateral or a personal guarantee to secure the loan.
- For-Profit Business: Your business must be operated for profit.
- Good Character: The business owner must have a clean criminal record, free of “dishonest” crimes such as fraud, burglary, or theft.
Instead of the traditional credit pull, the SBA leverages the FICO Small Business Scoring Service to determine a borrower’s eligibility, which doesn’t damage credit. Personally guaranteeing an SBA loan won’t show up on your personal credit report, either.
The SBA caps funding amounts at $5 million, although you can technically borrow up to $16.5 million. Through the SBA 504 loan program, eligible energy-efficient businesses or manufacturing projects can secure more than one 504 loan, up to $5.5 million each.
Secure the Best Business Line of Credit in 2024
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Paperwork
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Application
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Number of Lenders
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Service Level
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Approval Process
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Speed to Funding
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Collateral Requirements
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Business Profitability
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Credit Score
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Credit Check
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3 Months Bank Statements
No Tax Returns Required -
One Page – One Minute
DocuSign -
75+
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Business Advisor
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Hours/Days
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Hours/Days
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Not Necessary
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Not Necessary
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No Minimum FICO
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Soft Pull
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2-3 Years Tax Return
2-3 Years Financials -
Lengthy
Paper Intensive -
1
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Processor
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Weeks/Months
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Months
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Always
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Last 2 Years
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680+ FICO
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Hard Pull
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2-3 Years Tax Return
2-3 Years Financials -
Lengthy
Paper Intensive -
1
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Processor
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Weeks/Months
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Months
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Always
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Last 2 Years
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680+ FICO
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Hard Pull