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How To Get an SBA Loan

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2 min read. September 4, 2021 – Updated by Lauren Coppolone

Are you a business owner who needs extra funds in the quickest amount of time possible? Fortunately, there are various ways to secure a fast Small Business Administration SBA loan for any industry with great terms in as little as a few weeks.

how to get an sba loan

Fast SBA Loan Options

The SBA loan program that you ultimately submit an application for will depend upon your company goals, size, and time in business. Small business owners can qualify for express SBA loans up to $5M in many different ways, and the type of business you run and the industry in which your business falls under doesn’t matter.

  1. Traditional SBA 7a Loan: The 7(a) SBA program is the best option for most businesses who have general business needs, like working capital costs. With a 7(a) SBA loan, you can secure up to $5M to repay within 10 or 25 years.
  2. CDC/504 Loan Program: A CDC/504 SBA loan program is typically used to cover large fixed assets like commercial real estate or equipment financing. This program offers up to a $5.5M loan with repayment terms lasting either 10 or 20 years.
  3. Microloan Program: The Microloan SBA program offers small-sized loans to newer, smaller businesses who are looking to grow and expand. These loans fall under the $50K amount and usually have longer repayment terms across the span of six years.

SBA Loan Requirements

Although any business can secure SBA funding, there’s a lot of bad advice out there regarding SBA loans. There are specific requirements you must meet in order to qualify for your loan and and receive fast approval. The three main requirements associated with getting approved for an SBA loan include a FICO credit score over 685, two or more years in business, and at least $100,000 gross sales per year.

Most borrowers who receive approval earn over $180K annually, have a 680 credit score, and have been in business for four years. You will also need to provide the necessary paperwork and documentation to prove your eligibility to the lender of your choice.

SBA Loans for Business : SBA 7a Loan – SBA Microloans

Ways To Use Your SBA Loan

SBA loans are some of the most popular choices for small business financing. They feature low-interest rates, long terms, and are incredibly flexible. While some financing solutions or lenders lock you into a limited selection of “qualified” expenses – SBA loans can be used for a large variety of purposes. 

Different businesses have distinct financing needs – and SBA loans do a good job of meeting this extensive range.

Here are the top 6 ways you can use an SBA loan to grow your business:

1. SBA Loan for Equipment and Technology

Technology is moving fast, and as a business owner it’s important to keep up. If you’re still managing payroll or conducting bookkeeping services manually, you could save time and funds by switching to automated softwares. 

SBA loans allow you to purchase new equipment and technologies to make running your business more efficient. Whether it’s new vehicles, machinery, computer softwares, or you’re looking to upgrade existing models – SBA financing can help. 

2. SBA Loan for Real Estate

SBA loans can be used to purchase land, rent office space, acquire commercial property, and even renovate existing buildings or lots. You can even pay for landscaping and other construction costs with an SBA loan. 

Although SBA loans are a popular way to finance large real estate transactions, there are some restrictions. For example, you can’t use the proceeds from an SBA loan to purchase a rental property. Your business will have to occupy at least 51% of the space for an existing property or 60% of the space for a new construction. 

3. SBA Loan for Hiring

It’s no secret that businesses across numerous industries are struggling to attract talent amid a tight labor market. Thankfully, SBA loans can be used to help your business find and retain new hires. Proceeds from SBA loans can be put towards employee benefits, worker bonuses, and competitive salaries. 

4. SBA Loan for Refinancing

Many businesses have some type of existing debt. If you’re paying high-interest rates or if your credit score has significantly improved since you first secured financing, you might benefit from refinancing. 

Not all business lenders will allow you to use proceeds from a loan to pay off existing debt, but the SBA does. SBA loans can be used to refinance loans, commercial mortgages, business lines of credit, and even other SBA loans. 

5. SBA Loan for Marketing

It’s helpful to revisit your marketing strategy from time to time. You want to account for any changes in consumer trends, your target market, wider industry trends, and your competitors’ performance. 

To strategize and execute a new marketing plan you’re going to need funds – which is where the SBA comes in. You can use a SBA loan to fund market research, lead generations, sales goals, advertising campaigns, and more.

6. SBA Loan for Working Capital

Day-to-day costs of running your business can really add up and take a toll on your cash flow. This is especially true for businesses that experience seasonal lulls, and find it difficult to meet their expenses. 

Use a SBA loan to pay for rent, utilities, outstanding bills, suppliers, and more. With low interest rates and typically long-repayment terms, SBA financing can help you manage your operations until your cash flow improves. 

Get Quick Approval For An SBA Loan

If you have a FICO credit score over 685, apply for an SBA loan today through National and get approved in as little as 45 days! Call us at (877) 482-3008 or complete our quick online application to speak with a member of our team about your business’s funding needs.

Last Updated on May 31, 2019

National Business Capital is the top FinTech marketplace offering small business loans and financing. Harnessing the power of leading technology and smart people, we’ve streamlined the application process to secure over $2 Billion in financing for business owners nationwide.

Our Business Financing Experts work within our 75+ Lender platform to match you with the right option. Easily access the best low-interest SBA loans, short and long-term loans, business lines of credit and equipment financing all in one place.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Joe Camberato

Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.

https://www.linkedin.com/in/growbyjoe/

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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.