SBA 7(a) Business Loan

What is SBA business loan?

The SBA Business Loan Program does not involve the SBA lending directly. Instead, loans are made by SBA approved banks or lenders. A loan becomes an SBA loan when it is guaranteed by the Small Business Administration (SBA). The SBA is a federal agency that guarantees 70%-85% of the loan amount to the bank. If the borrower fails to repay the loan, the SBA pays the guaranteed amount to the bank. This reduces the risk for the bank, allowing them to offer lower interest rates and longer repayment terms. This program is considered one of the best in terms of loan conditions. 

 

Even if you already have an SBA loan, you can still qualify for an additional SBA loan. The SBA loan limit is $5,000,000, and you can receive a free pre-approval within 1-2 weeks.

 

We work with a network and partnerships with over 35 SBA approved or preferred banks and lenders to provide SBA loans. Among the various SBA programs offered by different banks and lenders, we can offer the most suitable terms for you.

Types of Regular SBA Business Loans:

SBA 7(s)

  • Loan amount up to $5,000,000. 
  • Rate: Prime + (1.75% – 4%)
  • Term: 10 years
  • Processing time:  About 2-3 months

  • The interest rate and monthly payment may vary every 4th quarter based on the current prime rate.

SBA 7(a) Express

  • Loan amount $100,000 – $350,000 
  • Rate: Prime + ( 1.75% – 3.75%)
  • Term: 10 years
  • Processing time: 1-2 months

  • The interest rate and monthly payment may vary every 4th quarter based on the current prime rate.

* What is prime rate?

 

The prime rate in the United States refers to the basic interest rate applied by banks when lending to the most creditworthy companies. The U.S. prime rate is mainly based on rates announced by leading U.S. banks such as Wells Fargo, Chase, and Citi. These banks typically lead the economy and hold important positions in the financial market, so the prime rates they announce influence the overall interest rate trend in the market. Therefore, the U.S. prime rate has a significant impact on both domestic and international financial markets and is used as the benchmark rate for various financial products such as mortgages and corporate loans.

Use of SBA loans:

  • Various purposes for business use
  • For the purpose of acquiring an existing business
  • Purchase of real estate for business use. See more detailed explanations in the real estate loan section.

Basic Qualification Criteria and Required Documents for SBA Loans:

  • Personal credit score of 650 , but Express loan requires700 or above
  • Business in operation for at least 2 years U.S.
  • permanent resident or citizen
  • No record of bankruptcy or property foreclosure in the past 3 to 10 years
  • No outstanding tax liens Not currently in default or delinquent on any government loans 
  • Recent 2-3 years of business and personal tax returns
  • Year-to-date (YTD) financial statements: profit & loss, balance sheet
  • Remaining loan schedule (debt schedule)
  • Recent 6 months of bank statements