How to Get An SBA Loan?
As the world is facing a global economic crisis due to COVID-19 pandemic, applying for a loan to support your business is not shocking news. SBA provides one of the most affordable small business loans in the US. Applying for them seems like a better option than any other kind of loan.
Now, when we are talking about an SBA loan, it is essential that we know that getting them is not always easy. To get an SBA loan you must meet certain criteria and specific requirements. After fulfilling all these requirements, you qualify for an SBA loan.
To get SBA loan online lenders are the best choice. They can fund loans into your accounts in a matter of hours like BitX funding. On the other hand, applying for SBA loans in the traditional way can take 60 to 90 days.
In this article, we are going to discuss some key steps which will help you get an SBA loan.
1. Are You Eligible to apply for an SBA loan?
When you make your mind to get an SBA loan first determine are you eligible for it or not. This means that you need to meet certain requirements to apply for an SBA loan. Here are some things that you are looking for to become eligible.
- Your business should be a registered for-profit business
- It should be located or operated in the United States
- It should meet the SBA definition of small business.
- The CEO has invested time and money in it.
- It should have exhaust financing options
- Should not have any past debt on it.
- Must have to credit score of more than 680.
- It should be at least 2-year-old business
- The minimum annual revenue of your business should be more than 100,000 Dollars.
2. Choose SBA loan program that suits your business
Once you determine that you meet all the requirements that make you eligible for an SBA loan. Now, the next step is to choose the right SBA loan program that benefits your business more than others.
SBA offers different kinds of SBA loans and, each of them comes with different requirements, loan amounts, and terms. Therefore, it is especially important to figure out which one will give you more benefits. Here are some options that you can choose from.
- SBA 7(a) loan
- SBA 504\CDC loans
- SBA Microloans
- SBA disaster loans
- SBA Express loans
- SBA line of credits
- SBA community advantage loans
- SBA investment and grant programs
3. Choose the right lender for you
After choosing the type of an SBA loan, the next thing you need to find the perfect lender for yourself. Now a day online lender is way faster than others. So, if you want to get your loan application approved fast goes for an online SBA lender like BitX Funding.
All kinds of lenders are specialized in different SBA loan programs. So, choose your lender according to the SBA loan program. Here are some things that you guys need to investigate a good SBA lender.
- They should give you a better loan interest rate
- What is the range interest your lender is giving you?
- Do they need a pre-approval process?
- Does he take a long funding process?
- Do they require any collateral?
- They should have good client reviews.
4. Proper paperwork
Gathering proper paperwork is another thing that you require to get an SBA loan. You have to complete all the required business paperwork that SBA lenders required from you. Here are some official documents that you guys should have.
- You should provide basic business information
- Basic personal and background information of yours
- Business plan
- Credit history
- Tax payments and return history
- Business legal documents
- Personal and business financial statements
So, these are some things that you guys require to get an SBA loan for your small business.
BitX Funding is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.
You can reach a loan specialist by toll-free at 1-800-824-2407, or email at email@example.com or applying online here and we can guide you on which loans are the best fit for your business.