Your Comprehensive Overview of SBA Loans

One of the best ways to get the funding you need to make your small business successful is through an SBA loan. While the Small Business Administration does not itself lend out money, it does provide guarantees to lenders, so that if a borrower defaults, the SBA would pay a percentage of the loan amount. Low interest rates also help make SBA loans perennially popular, and one of your best bets for securing business funding.

SBA loan types

The most popular SBA loan is the 7(a) loan program, which is guaranteed for up to $5 million, and provides funding for equipment purchases, business expansion, or working capital. The 504 loan is also guaranteed for up to $5 million, but it is used primarily for the purchase of property, equipment, or existing facilities, and is typically processed through non-profit organizations and private sector lenders.

SBA micro loans of up to $50,000 can provide funding for the acquisition of inventory or equipment, and for starting a new business. These are normally processed through non-profit organizations within a community. SBA disaster loans are available for amounts up to $2 million, and are intended to assist business owners who have been impacted by federally declared disasters. These are processed through the SBA itself.

How to get an SBA loan

To start the process of applying for an SBA loan, you should visit the Small Business Administration website, where you’ll be able to use their loan application checklist before applying. After gathering all the necessary documentation, including personal financial statements and income tax returns, business tax returns, business certificate, loan application history, and other documentation, you can submit your application.

At that point, you should go to your local SBA office and obtain a list of approved lenders which you might potentially work with. From there, it’s a matter of applying with individual lenders, to see if you can obtain the funding you need.

Commercial Capital Lending and SBA loans

When you’re preparing to apply for an SBA loan, you’ll need a lender who has worked with the Small Business Administration in the past, and has a good working relationship with the SBA. Contact us at Commercial Capital Lending today about securing an SBA loan.


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