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Small Business Administration-backed Loan (SBA Loan)
As the name suggests, SBA loans are loans that are covered through approved lenders and guaranteed by the Small Business Administration (SBA). This government agency runs several SBA funding programs and can provide a loan guarantee of up to 85% of the loan amount as issued through an SBA-approved lender—usually banks and other financial institutions.
For many business owners, an SBA loan goes a long way in keeping their companies afloat and exploring new opportunities for growth. There are three main SBA loan programs and they all allow you to borrow money for just about any business purpose—including buying inventory or equipment, working capital, purchasing real estate, and even refinancing other debts.
How Can You Benefit from An SBA Loan?
The Small Business Administration leaves it upon business owners to determine how to best use the funding. Normally, how they’re used are divided into three categories of initiatives:
You can use the money to purchase equipment or real estate as well as hire new staff or independent consultants to maximize the growth potential of your business.
When funds are a little short, it can be used to pay bills, employees, and other business expenses.
You can use this loan to create opportunities like opening a new location, taking on more clients, or buying inventory in bulk to save.
Will your business qualify for an SBA loan?
The SBA loan process may seem intimidating, but it is generally more straightforward compared to other conventional loans. Plus, it’s easy to break the application process into different parts and tackle each aspect head-on before moving to the next.
Keep in mind that the loan process does involve a considerable amount of paperwork regarding your business, personal background, and more. You’ll also need to provide the following documents
- 2 years of Personal Tax Returns
- 2 years of Business Tax Returns
- YTD Balance Sheet
- YTD Profit & Loss Statement
- Debt Schedule (if any)
Additionally, you should be able to meet the following requirements
At least two years since founding
Business located in the US
Personal credit score of 600 or higher
$120k revenue in the last 12 months
Your business revenue and your credit score don’t have to be exceptional for you to apply. The sooner you provide the required information, the more quickly the lender can approve your SBA loan application.
The only downside? It can take up to eight months before you get a decision on your application. If you need quicker funding, go for SBA Express Loans.
Why Choose Us for Your SBA Loan?
United Business Loans is a leading financial technology marketplace offering small business loans and services. We harness various smart technologies manned by even smarter people to streamline the SBA loan approval process. What’s more, with us, you can receive your funds in the shortest possible time, sometimes even less than 24 hours. Call us today and let us get your SBA loan application started!