As the world is facing a global economic crisis due to the 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 loan. When talking about an SBA loan, we must know that getting one is not always easy. You must meet certain criteria and specific requirements to get an SBA loan. After fulfilling all these requirements, you qualify to apply for an SBA loan.
To get an SBA loan, online lenders are the best choice. They can fund loans into your accounts in hours like BitX funding. On the other hand, applying for SBA loans traditionally can take 60 to 90 days.
In this article, we will discuss some key steps to help you get an SBA loan.
1. Are You Eligible to apply for an SBA loan?
When you make up your mind to get an SBA loan, first determine whether you are eligible for it or not. 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
- It should not have any past debt on it.
- Must have a 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 an SBA loan program that suits your business
Once you determine that you meet all the requirements that make you eligible for an SBA loan. The next step is choosing the right SBA loan program that benefits your business more than others.
SBA offers different kinds of SBA loans, each 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 decide from.
1_SBA 7(a) loan
2_SBA 504\CDC loans
4_SBA disaster loans
5_SBA Express loans
6_SBA line of credits
7_SBA community advantage loans
8_SBA investment and grant programs
3. Choose the right lender for you
After deciding on the SBA loan type, you next need to find the perfect lender for yourself. Now a day, an online lender is way faster than others. So, if you want to get your loan application approved fast, go for an online SBA lender like BitX Funding.
All kinds of lenders are specialized in different SBA loan programs. So, decide on your lender according to the SBA loan program. You guys need to investigate some things for a good SBA lender.
- They should give you a better loan interest rate
- What is the range of 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 requirement to get an SBA loan. You must complete all the business paperwork that SBA lenders require 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 you guys require to get an SBA loan for your small business.
BitX Funding is an 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 are passionate about helping your company reach its full potential.
You can reach a loan specialist toll-free at 1-800-824-2407 or email [email protected] or apply online here, and we can guide you on which loans are the best fit for your business.