SBA Loans

SBA Loans are backed by the Small Business Administration (SBA), a government agency that supports small businesses, offering lower interest rates and more flexible terms than conventional loans. You apply for SBA loans through a private lender or broker, like 1st Capital Financial.

When you apply for an SBA loan, you may be asked to provide the following documents:

• Personal Background Statement
• List of Business Loans You’ve Applied For
• SBA Form 1919 (“Borrower Information Form”)
• SBA Form 413 (“Personal Financial Statement”)
• Copies of Financial Statements
• Copies of Income Tax Returns
• Copies of Business License(s) and Registration(s)
• Copies of Articles of Incorporation and Bylaws, or Operating Agreement
• Copy of Business Plan

The minimum down payment for an SBA 7(a) Loan, Express Loan, or 504 Loan is 10%. However, down payments will vary based on creditworthiness, cash flow, collateral, and other factors.

Once approved for an SBA loan, you will typically receive your funds in 30 to 60 days.

SBA loans are more challenging to qualify for than some alternative financing options. However, they’re also easier to qualify for than conventional loans. SBA lenders and brokers tend to be more accommodating than most banks.