What is a SBA Loan?
The U.S. Small Business Administration helps small business owners get funding through SBA loans. With their multiple SBA funding programs, this government agency provides SBA loan guarantees of up to 85% of the loan amount provided through an SBA-approved lender. The three main SBA loan programs allow you borrow money for nearly any business purpose, including working capital, purchasing inventory or equipment, refinancing other debts, or buying real estate. This is through these SBA-guaranteed loans.
Loan Amount Of $5,000 to $5,000,000
The SBA can guarantee up to 85% of loans of $150,000 or less and 75% of loans of more than $150,000
Loan Term lasts 5 to 25 years
If your loan is more than $50,000, your rate is based on the prime rate with a max of 2.25 percentage points.
Interest Rates Starting at 6.75%
As of December 2017, that meant a maximum interest rate of 6.75%.
Get Your Cash as fast as 3 weeks
The SBA has another financing program called SBA Express, which aims to respond to loan applications within 36 hours.
Who Qualifies for SBA Loans?
As it turns out, many businesses, including small or new ones—can qualify for an SBA loan. The most important factor will be your credit score: SBA loans are for business owners with strong borrowing histories. You might find it difficult to qualify for an SBA loan if your company has a limited track record or, especially, if your credit is poor. After all, the SBA and your lender are sticking their neck out on the belief that you’re a reliable borrower.
How to Apply for a SBA Loan?
There are many large and local banks that offer SBA loans. These bank lenders will have extensive loan applications, looking closely at the financial details of your business. At a minimum, an SBA loan application at a traditional bank will take a couple of weeks to process. For an easier and quicker process, you can apply online to top SBA lenders.
How Do SBA Loans Work?
Almost every small business owner wants to know how to qualify for an SBA loan. As one of the lowest-cost products out there, SBA loans are the holy grail when it comes to growing your business affordably. At Cheddar Capital, we’ve helped hundreds of small business owners successfully secure SBA loans. With all that experience, and data—under our belt, we’re confident we can give you the right information you need to apply for an SBA loan.
What Will a SBA Loan Cost You?
Well, the cost and repayment of your SBA loan depends on the program you choose.
This group was professional, timely and was a pleasure to work with. The turnaround time was fast and even with my less than perfect credit record they had me funded in a few days. Two thumbs way up!!!
Physician, New Jersey
I was very pleased with the customer service and speed of Cheddar. In this day and age it is becoming harder to find good customer service anywhere.
Funding was easy. Cheddar made it easy and fast to get the needed capital for my business.
Energy Consultant, Washington