SBA Loans Frequently Asked Questions

 

1. What is an SBA Loan?

SBA Loans are guaranteed by the Small Business Administration and are exclusively designed for small-to-medium size businesses with up to $5 Million in average net income and net worth up to $15 Million. This guarantee allows for lower down payments and longer terms than conventional bank loans.

2. Is an SBA Loan for me?

When compared to conventional bank loans, SBA Loans offer lower down payment requirements, flexible underwriting guidelines and fully amortizing terms. The SBA Program allows business owners to preserve more capital for other uses and maximize cash flow.

3. Can I qualify for an SBA Loan?

Eligible Borrowers:

- For profit, non-publicly traded companies

- Tangible business net worth (including affiliates) not to exceed 15 Million

- Average net income of the business not to exceed $5 Million over past 2 years

- Personal liquidity or each principal must not exceed total project cost

- Ownership must be comprised of 51% US citizens or permanent resident aliens

- Real Estate in question must be 51%+ Owner Occupied

4. What can I finance with my SBA Loan

SBA Loans are surprisingly very flexible. They allow financing for Real Estate acquisition & refinance, build-out, inventory, equipment and working capital. The SBA 7a loan program is commonly the best choice for financing business acquisitions.

5. Is it more difficult to secure SBA financing than Conventional Bank loans?

The process is surprisingly similar. Commercial real estate and business transactions, as well as start-up requests, are complex and tend to take roughly the same time regardless of whether you are financing your project with an SBA or a conventional loan. A non-real estate transaction can close in as little as 30 days and a transaction with real estate in as little as 45 days.

6. How can I get started on my SBA Loan with 1st Commercial Lending?

1. Complete our Commercial Loan Quick App Here and one of our Commercial Loan Advisors will contact you within 24 hours...
2. After you speak with one of our commercial loan advisors you will receive our 1CL Financing Application. Upon receipt & qualifying lender review of our 1CL App and initial document checklist, we will have a loan proposal with rate & term options.
3. Choose which options work best for you and move forward to closing!

7. How fast can I close an sba loan

Although no scenario is exactly the same, a typical SBA commercial real estate loan can easily close in as little as 45 to 60 days. However, we do have a Fast Track option allows for a 30 day close if necessary.

 

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Recent Testimonial

1st Commercial Lending really came through for us when my sisters and I wanted to open our small business a few years ago. In a time when banking is so volatile, it was nice to know that someone was on our side to work with us in achieving a small business loan. Mike made the grueling process much simpler and fought for us and our goal.

The people at 1st Commercial are not afraid to roll up their sleeves and work hard to help you get the loan that you need."

Hilary Ross, "Barrel O Monkeys" Kids Gym - Delray Beach, FL