Alternative Small Business Loans
Are You a Small Business in Need of Fast Funding?

CONTACT US TODAY!
800-824-2407  |  info@bitxfunding.com
AMEX Disclosure > APPLY NOW >

  • Home
  • Small Business Loans
    • Small Business Loans
    • Short Term Loans
    • Mid Term Loans
    • Business Lines Of Credit
    • Merchant Cash Advances
    • Personal Loans for Business
    • Startup Business Loans
    • Invoice Financing
    • Equipment Financing
    • SBA Loans
    • Amazon Inventory Financing
  • Business Insurance
  • SBA PPP Loan
  • Company
  • Contact
  • Reviews
  • Blog

Bitx Funding

Your Online Marketplace
SBA Loan Services

Apply Now

A+ Rating

with the Better Business Bureau

50 Million

Delivered to small businesses

8.1/10

rating on TrustPilot

SBA Loans

There are various SBA Loans programs available to small business owners, but navigating through them all is cumbersome and time-consuming. BitX Funding has relationships with several lenders offering SBA Loans and will guide you through the process saving you time, money and energy. To qualify no start-ups, 2 years in business, 1.25 debt service ratio, 650 FICO +, for-profit companies and are looking for 30K to 5 Million in funding.

5.75%

Lowest annual interest rate APR

10 to 25 year terms

Short and long term payback

$30,000 - $5,000,000

Estimated loan 10% of your annual revenue

Grow and invest in your business.

Fund projects and purchases that drive your business forward.

You could:

  • Refinance existing debt out 10 to 25 years
  • Purchase or refinance a business property
  • Business expansion or hire employees

700+ Industries

Restaurants, Manufacturer & Doctors

All 50 States

California to Connecticut

Online Marketplace

Matching The Best Loan Option

Apply Now

Trustpilot

What You Need to Qualify

2+ Years in Business

650+ Credit Score

300k Annual Revenue

Decision in Minutes - No Obligation

Step 1

Apply online in just a few minutes or call us directly at 800.824.2407

 

Step 2

Our loan specialist will match you up to the appropriate loan and provide a decision in minutes

Step 3

Sign your contract and receive money in as fast as 24 hours

Apply Now

How Do SBA Loans Work?

Almost every small business owner wants to know what an SBA loan is, and how to qualify for one. As one of the lowest-cost products out there, SBA loans are the holy grail when it comes to growing your business affordably.

But aren’t they impossible to get approved for?

At BitX Funding, we’ve helped thousands of small business owners successfully secure loans with our SBA loan services. With all that experience—and data—under our belt, we’re confident we can give you the information you need to apply for an SBA loan.

By understanding how the product works and what exactly the eligibility requirements are, you’ll know if an SBA loan is the right product for your business.

SBA Loans: The Fundamentals

The “SBA” in SBA loans stands for the Small Business Administration.

The SBA does not make direct loans to small businesses. Rather, the SBA sets the guidelines for loans, which are then made by its partners (lenders, community development organizations, and micro-lending institutions). The SBA guarantees that these loans will be repaid, thus eliminating some of the risks to the lending partners.

So, when a business applies for an SBA loan, it is applying for a commercial loan, structured according to SBA requirements with an SBA guaranty. SBA-guaranteed loans may not be made to a small business if the borrower has access to other financings at reasonable terms. SBA loan guaranty requirements and practices can change as the government alters its fiscal policy and priorities to meet current economic conditions. Therefore, you can’t rely on past policy when seeking assistance in today’s market.

The SBA can guarantee as much as 85 percent of the loan proceeds, so while the lending institution will have some risk, it should also be willing to take on more risk than with traditional loans. SBA loans can be as large as $5 million. Most SBA loan services are through banks. You can ask your bank whether it makes SBA-guaranteed loans, or you can go to the SBA website for a list of participating lenders. Besides, the SBA has a microloan guarantee program for loans up to $50,000. These loans are provided through nonprofit community-based organizations. You can find a list of participants on the SBA website.

Applying for an SBA Loan

It’s tougher than ever to qualify for a small business loan from a bank. Sole proprietorships that don’t bring in much money, export businesses, and startups can have an even more difficult time getting SBA loan services, even through online lenders.

Since Small Business Administration loans are backed by taxpayer dollars, the application can be a doozy. What you need is a breakdown of how to apply for an SBA loan for your business.

Applying for an SBA loan takes longer than most other loans — and it requires a lot more paperwork, too. There’s the application to fill out, forms to complete and documents to get together. And wading through the government-issue jargon to figure out who is required to fill out what can be more time-consuming than the forms themselves. Here’s what you need to do if your business is getting ready to apply for an SBA loan.

Step 1: Check your eligibility

Before you even begin your application, make sure your business is eligible. The SBA might be open to businesses that don’t typically qualify for loans, but it still has strict eligibility requirements. The SBA’s most general requirements include:

Good or excellent credit for all major owners 650 > FICO

For-profit, US-based business in an eligible industry (vice and loan packaging typically can’t qualify)

At least two years old

Proof the business has tried and failed to get funding from other lenders

No delinquencies or defaults on government loans

Meets the SBA’s definition of a small business

Owners have invested a reasonable amount of equity in the business

Your lender or program might also have additional eligibility requirements. Your business could qualify for an SBA startup loan through the 7(a) program if it doesn’t meet the age or credit score requirements.

Some SBA lenders also require collateral in the form of the business or business owners’ assets. The collateral typically backs the portion of the loan that the SBA doesn’t cover — typically between 15% and 50% — with your personal assets.

Step 2: Choose a program

Just because most businesses go for the SBA 7(a) program doesn’t necessarily mean it’s right for you. Choose a program that works best for your business. Here are some of the most common SBA loan services.

SBA 7(a). The 7(a) program covers several different types of SBA loans. But the standard 7(a) loan is a term loan of up to $5 million that any qualified business owners can get for nearly any legitimate purpose.

SBA CAPlines. Falling under the umbrella of the 7(a) loan program, the CAPline is the SBA’s standard use line of credit of up to $5 million.

SBA 504. These term loans are generally for buying fixed assets like equipment or real estate to help a business expand, which acts as collateral. This program requires a down payment of around 10% to 20% and instead of applying through a lender, your business applies through a Certified Development Company (CDC).

Disaster assistance. This program was made to help businesses get back on their feet after suffering physical damage from a disaster like a hurricane. They come with extra-low rates in amounts up to $2 million.

SBA Export programs. The SBA offers three programs designed for small export businesses to get financing — which typically has trouble getting a business loan. These include the SBA Export Express program, Export Working Capital program and the International Trade loan program.

Step 3: Gather your paperwork

Once you’ve found the right lender or referral service, it’s time to start gathering the documents you need for the application. While it depends on the lender and type of SBA loan service you’re applying to, most business owners will need to provide the following information at a minimum:

  1. How much your business wants to borrow
  2. A detailed list of how your business plans to use the funds
  3. Financial projections for the next one to three years
  4. A cash flow statement
  5. A current profit and loss (P&L) statement
  6. A current balance sheet
  7. Two years of business tax returns
  8. Two years of personal tax returns from each owner
  9. Personal financial statements for each business owner
  10. Resumes of each owner
  11. A business plan, including an overview and history
  12. Proof of ownership
  13. Business licenses and leases

If any business owner owns 20% or more in another business, they will likely need to provide details on that business as well, especially financial statements. If you intend to buy another business with your loan, you’ll also need to provide financials on that business, including tax returns, and the purchase agreement.

How to Choose the Right SBA Loan Program

The SBA’s loan programs are designed specifically for small business owners who don’t have access to another reasonably termed financing. There are four main types of loan programs:

7(a) loan program: This is the SBA’s primary program to help startups and existing small businesses obtain financing. 7(a) loans are the most basic and most commonly used type of loan, as well as the most flexible. The money can be used for a variety of general business purposes, including working capital, machinery, and equipment, furniture, and fixtures, purchasing or renovating land and buildings, leasehold improvements and debt refinancing. Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets. Borrowers can apply through a participating lender institution.

CDC/504 loan program: This SBA loan service provides businesses with long-term, fixed-rate financing for major assets, such as land and buildings. The loans are typically structured with the SBA providing 40 percent of the total project costs, a participating lender covering up to 50 percent and the borrower putting up the remaining 10 percent. Funds from a 504 loan can be used to purchase existing buildings, land or machinery, and to construct or renovate facilities. These loans cannot be used for working capital or inventory. Under the 504 program, a business qualifies if it has a tangible net worth of less than $15 million and an average net income of $5 million or less after federal income taxes for the two years before application. The maximum amount of a 504 loan is $5 million.

Microloan program: This program offers very small loans to startups, or newly established or growing small businesses. The loans can be used for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery or equipment. The SBA makes funds available to specially designated intermediary lenders, which are nonprofit organizations with experience in lending and technical assistance. Those intermediaries then make loans of up to $50,000, with the average loan being about $13,000. The loan cannot be used to pay existing debts or to purchase real estate.

Disaster loans: The SBA offers this option to businesses that have been affected by a declared disaster. These low-interest loans can be used to repair or replace damaged real estate, personal property, machinery, equipment, inventory, and business assets.

Further details on each type of loan program can be found on the SBA’s website.

What Will an SBA Loan Cost You?

What’s the bottom line for your business’s bottom line? How much will an SBA loan cost?

Well, the cost and repayment of your SBA loan depend on the program you choose. Here are the fees, interest rates, and repayment terms usually associated with each of SBA’s most popular loan program 7(a)

7(a) SBA Loan Program

The St Louis District Office frequently answers questions for our lenders related to fees on SBA loans, so we wanted to go over a few points. SBA collects loan guaranty fees so entrepreneurs (not the United States taxpayers) bear much of the cost of funding SBA’s financial assistance programs.  Guaranty fees are due within 90 days of the date of loan approval and may be financed with the proceeds of the SBA-guaranteed loan.

Entrepreneurs often need capital to start or grow their small business and realize that there is a cost of capital. Small business owners often find the fees associated with obtaining SBA loan services more attractive than the cost of other capital options.  For example, for a $150,000 loan, the SBA guaranty fee is $2,550 or 2% of the guaranteed portion (85%).  For a $5,000,000 loan (75% SBA guaranty of $3,750,000), the loan fee is $138,125 calculated as 3.5% of the first $1 million guaranteed ($35,000) plus 3.75% of the remaining guaranteed amount.  We urge lenders to refer to SBA Standard Operating Procedure (SOP) 50-10-5(E)Download Adobe Reader to read this link content to determine the exact guarantee fee that will be due on a specific SBA-guaranteed loan.

Interest Rates

Maximum of 2.75% + Prime Rate (typically between 5 – 10%).

Repayment

Up to 10 years for working capital loans and equipment loans, and 25 years for commercial real estate loans.

If you’re feeling unsure about which SBA loan program makes sense, BitX Funding can walk you through your options and help you decide which program is right for you—and whether you’ll qualify for our SBA loan services.

And if you’re not there yet, we’ll work with you to graduate your business up to an SBA loan—one of the longest-term and most affordable business loan options out there.

 

FAQ’s

What Is SBA 7a Loans For?

As a business owner you may now need a SBA 7a loan (small business loans), having an SBA business loan or start-up loan seems a bit hard to get but when working BitX Funding you are in good hands, never ever feel stuck. In the slew of bank and lending institutions going for the best option that could surely get you a loan with no hidden charges may be challenging but BitX Funding is here for you with great rates and terms.

Small Business Administration loan programs are drafted in an agreement between lenders and SBA agencies. The SBA shoulders most of the risks for the lender by guaranteeing a major portion of the loan amount. Because of that guarantee, lenders can offer more flexible payment terms and lower interest rates than most small businesses would otherwise be able to get.

Borrowing and lending have been surrounding us since the dawn of time but connecting with a perfect lender is never easy. Before you move to BitX Funding loans programs, let us plunge into the question that pops up in the minds of the lenders. Why do you need a loan or What are these loans for?

SBA 7a Business loans 

So now when you have decided to take a step further with SBA 7a business loans they should be secured for the following reasons, do you qualify for the loan, do you have a reason to acquire a business loan to fuel up your business.

Consolidate Other Loans

Loans may be acquired to consolidate other loans, for business purposes, you may need to borrow money to pay off other accounts or loans weave. Consolidating other loans can be a reason for a larger issue, it reflects for being financially over-extended or maybe you have borrowed too much lately.

People usually think of consolidating smaller debts into one larger loan, which gives us just one monthly payment.

To Purchase Real Estate and Expand Operations

Real Estate is a pretty much significant thing, that makes a big difference to your business. So, if you are in a need to specify a perfect roadmap to purchase a real estate and expand operations then you should acquire a business loan.

Your Business Needs Inventory Financing

To keep constant cash flow for your business, your business sometimes must dive for quick inventory purchase, then a small business loan can be a life save for you.

Business Needs Fresh Talent 

Maybe your business services are going to obsolete paths that can open the doors for serious devastating loopholes to your business and SBA emergency loans for small businesses can rescue now. Quitting the old methods for business strategies and opting for contemporary ideas asks for a little investment just like SBA business loans.

How do I begin the loan application process?

BitX Funding is offering you a simple and easy application process and makes everything hassle-free for you. You must go through the following steps before getting an SBA business loan.

See If You Qualify

Check the qualification criteria for SBA disaster loans for small businesses

Apply Online 

It would take a couple of minutes to apply online for the BitX Funding SBA small business loan program.

The loan specialist will get in touch with you 

Our loan specialist will get in touch with you after they receive your online application.

Gather Your Paperwork

  • 6 Months of Bank Statements
  • YTD Balance Sheet and P&L
  • Two Years of Business Tax Returns
  • Proof of Ownership
  • Two Years of Financial Statements
  • Two Years of Personal Tax returns

Sign Your Contract

Sign your contract and avail the money after 24 hours.

How much can I borrow?

You first must decide the niche for your business loan and select the options accordingly. But as a rough estimate, BitX Funding would adorn your business from $30,000 - $5,000,000 (Estimated loan 10% of your annual revenue) depending upon your business needs.

What is the interest rate and how long do I have to pay off this loan?

The interest rates for your small business loans vary but they are usually starting from 6.75%. But the loan terms typically differ for every small business loan. Let us have a quick understanding of it,

SBA Small Business Loans- The amount must be paid back within the defined period of 10 to 20 years.

Is the collateral required for these loans?

As mentioned above you just have to qualify for the loan application, then you will have the freedom to secure loans with collateral in return, flourishing your business with constant growth always.

SBA small business loan lenders also require collateral in the form of current assets. The collateral typically backs the portion of the loan that the SBA does not cover (typically between 15% and 50% with your personal assets).

  • $30,000 to $350,000 no collateral required
  • $350,000 to $5 Million collateral is required

How Can I Use the Money?

You can use the SBA small business loan amount availed from BitX Funding for your business needs. Whether you need money for your small business or personal needs, BitX funding is here to cope with your business demands. If you require funds for your small business, then BitX Funding is here to make your business grow.

You can use SBA emergency loans for small business in the following ways:

  • Start-up
  • Expansion
  • Equipment purchases
  • Working capital
  • Inventory
  • Real-estate purchases

If I Have Access to a Line of Credit Elsewhere Can I Apply?

While conventional personal loans bear a fixed term, a line of credit expediates access to extra money whenever you want (up to your credit limit). This means you can use it without applying for another loan, which allows more flexibility than fixed-term loans.

What Is the Credit Score Requirement?

Credit score holds an utterly important role in attaining the SBA small business loan, it reflects your seriousness in paying off the loans. Whether you apply online or opt for conventional banking a sound and good credit score is always a plus. BitX funding requires you to have a 650+ credit score and 2+ years to qualify for the SBA small business loan.

What If I Have Been Through Bankruptcy?

When you are going through bankruptcy, applying for a loan might be the next thing that would pop into your mind. Bankruptcy leaves your credit in tatters, dramatically affects your credit score, and it will remain on your report for seven to 10 years.

If you are considering loans after bankruptcy, expect to wait for at least one or two years before applying for small business loans.

Will My Business Credit Be Checked?

Securing an SBA small business loan can be a bit stressful; business credit is checked whether you are applying for a personal loan or an SBA small business loan, business credit is always targeted as a priority. Your business Credit would be checked before you qualify for an SBA small business loan, so it is mandatory to have good and sound business credit.

Skilled Advisor

BitX Funding is your online marketplace for small business loans. From SBA, start-up lines of credit, short-term loans, mid-term loans, invoice financing to merchant cash advances and lines of credit, BitX Funding is where lenders compete for your business. Our top-rated lenders focus on real-life business data and cash flow, which means you can qualify for a loan even if your credit score isn’t perfect. What differentiates us from the competition is that with a brief questionnaire our highly trained loan consultant will listen to your needs and match you with the appropriate funding. You can go at it alone and spend hours online trying to find funding for your business or you can have a one-stop experience with BitX Funding and our direct connection with the lenders.

Corporate Headquarters

1700 Post Road, Suite B-10
Fairfield, CT 06824

info@bitxfunding.com

800-824-2407

203-763-1430

Fax: 800-826-6403

Hours: M-F 8AM - 9PM ET, SAT 9AM - 5PM ET

Loan Types

  • Short Term Loans
  • Merchant Cash Advances
  • Business Lines of Credit
  • Mid Term Loans
  • Start Up Funding
  • SBA Loans
Trustpilot

BitX Funding, L.L.C. BBB Business Review
© 2017 BitX Funding | Website by Infinite Web Designs, LLC
Bitxfunding.com is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which Bitxfunding.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants’ credit approval also impact how and where products appear on this site. Bitxfunding.com does not include the entire universe of available financial or credit offers.