Get the Capital to Grow Your Small Business
Secure government-guaranteed SBA financing. Use it for working capital, refinancing high-cost debt, or acquiring a new business.
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What Is an SBA Loan?
SBA loans are government-guaranteed financing designed to help small businesses access capital when they might not qualify for conventional loans.
The SBA 7(a) loan is the most versatile program, used for working capital, business expansion, equipment purchases, or commercial real estate.
The SBA 504 loan is specifically designed for long-term, fixed-rate financing of major fixed assets, such as acquiring owner-occupied commercial real estate or large equipment.
Why offer SBA 7(a) Loan?
SBA 7(a) loans can be used for most business purposes:
- Buying or expanding a business
- Purchasing equipment, inventory, or working capital
- Acquiring or improving owner-occupied commercial real estate
- Refinancing existing business debt
- Better rate (7.75% to 10.25%+). Typical market rates (Prime + SBA-allowed spread). Check with our approved lenders for the current pricing.
The SBA 504 loan is specifically designed to finance major fixed assets and cannot be used for working capital or inventory.
- Acquiring or improving owner-occupied commercial real estate. The business must occupy at least 51% of an existing building or 60% of a new construction project.
- Purchasing long-term machinery and equipment (must have a useful life of 10 years or more).
- Construction of new facilities.
- Refinancing existing qualified business debt (with or without expansion).
Rate Sheet
SBA 504: U.S. Treasury + a lender-determined spread
SBA 7(a): Prime Rate + a lender-determined spread, but cannot exceed the maximum rate set by the government.
Business / Borrower Requirements
- Must be a for-profit small business operating in the U.S. under SBA size standards
- Must show ability to repay the loan from cash flow
- Owners with 20% or more equity must provide a personal guarantee
- Must meet SBA’s “credit elsewhere” test (i.e., cannot reasonably obtain credit on similar terms without SBA)
- Some lenders require 2+ years in operation; others may accept less with compensating factors
Borrower / Guarantor Requirements
- Borrowing Entity: Loans are made to a legal business entity (e.g., LLC, S-Corp), not an individual.
- Personal Guarantee (PG): SBA requires PG from every owner of 20% or more. This makes them personally responsible for the debt if the business defaults.
- Post-Closing Liquidity: Guarantors must show they have sufficient personal funds remaining after closing, typically equal to 6-12 months of total mortgage payments.
Financial Documentation Requirements: A complete and organized documentation package is critical for a smooth underwriting process.
Standard Application Documents
- Business Tax Returns: 3 years of federal tax returns for the subject business and/or detailed Profit & Loss statements.
- Personal Tax Returns: 3 years of personal federal tax returns for all principal owners/guarantors.
- Other Business Financials: 3 years of tax returns and existing loan information for any other businesses owned by the guarantors.
- Personal Financial Statement (PFS): A current, detailed PFS for each guarantor.
- Resume: A professional resume for each guarantor, highlighting their experience in managing similar properties or in the relevant industry.
- Business Plan and financial forecasting for the next 2–3 years (depending on the lender).
Additional Documents for a Refinance
- Promissory Note: A copy of the existing promissory note for the loan being refinanced.
- Security Agreement: The security agreement from the current loan.
- Payment History: An official payment history from the current lender.
- Billing Statement: The most recent billing or mortgage statement.
Rent / Lease Transfers: If the business is acquiring a property with existing tenants or leases, the lender may require assignment of leases from the prior owner to the new borrower. This often involves negotiation and back-and-forth communication with tenants, landlords, or property managers.
How to apply for a SBA Loan
- We will discuss your business's financial situation, the specific purpose of the loan (e.g., real estate purchase, equipment finance, working capital), and your business's financial profile.
- We will guide you through the pre-qualification or pre-approval process. This involves analyzing your business's Debt Service Coverage Ratio (DSCR) and capital needs to provide you with an estimate of the loan amount and terms you are likely to receive from commercial lenders.
- Business tax returns (past two to three years).
- Year-end and current interim Financial Statements (Balance Sheet, Income Statement, Cash Flow Statement).
- Detailed Business Plan and Company History (including financial projections).
- Personal Financial Statements.
- Personal tax returns (past two to three years).
- Personal credit reports (which we will obtain).
- Resume (or biography) for each owner.
- Personal History Statement.
- Purchase contract (if buying).
- Rent roll (if applicable for income property).
- Environmental questionnaire/report.
- Appraisal and title information (requested later, but preparation starts now).
Our approved lenders
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