Applying For SBA Loans

If you search “small business loans” on the web, you’re likely going to come across multiple links for the Small Business Administration (SBA) and their various loan types. Ranging from $500 to $5.5 million, loans guaranteed by the SBA range from small to large and can be used for most business purposes like inventory, salaries and real estate.

Here’s a quick overview of the SBA’s most popular loan type – the 7(a) Loan:

SBA 7(a) Express Loans (up to $150,000)
• 685+ credit on all 3 bureaus
• No collateral required
• Cash injection of 10%
• 20% cash reserve
• Funding in 45 days

SBA 7(a) Loans ($150,000+)
• 675+ credit on all 3 bureaus
• Collateral required – up to 100%
• Cash injection of 20-30%
• 20% cash reserve
• Business plan
• Funding 3-4 months

Each loan and each lender will have unique eligibility requirements, but SBA defines as a small business as having less than 500 employees, average annual revenue under $7.5 million, and tangible net worth under $15 million, among other qualifications.

SBA 7(a) loans work congruently with small business owners who are also using ROBS (Rollover as Business Startup) funding to start a new business or franchise, buy an existing business or franchise, or recapitalization of an existing business. In fact, one of the key components of using retirement monies to fund a new business is the protection offered through using Creditor Protected Assets. You can learn more about ROBS funding in the Tenet Financial Group blog, found here.

Tenet Financial Group can assist you with managing all aspects of your funding journey on the road to small business ownership. Give us a call today – 1-888-901-3335 – and speak with a Senior Consultant about your small business funding needs.