What is an SBA Loan, and How Do I Qualify?
The U.S. Small Business Administration (SBA) is a federal agency committed to supporting the growth and development of small businesses by partnering with lenders to provide SBA Loans. It is important to note that they are not the loan provider but work with other lenders to support and administer the loan. The purpose of the SBA is to establish the guidelines and guarantee a percentage of the loan, to minimize the risk for their lending partners.
Types of SBA Loans
- SBA 7a: Most popular SBA loan. You can use it for working capital, to purchase equipment, real estate, new building construction, renovation, expansion, and so on.
- CDC 504: Designed to provide long-term financing for major assets like property and buildings. The CDC 504 is to help small business owners create local jobs and are up to 100% guaranteed by the SBA. Must be a nonprofit business.
- SBA Express: Features an accelerated turnaround time for review; will respond to an application within 36 hours.
- USDA B&I Loans: link – This program bolsters the existing private credit structure by guaranteeing loans for rural businesses, allowing private lenders to extend more credit than they would typically be able to.
How Do I Qualify?
All SBA loans require that you are a small business operating in the U.S., have reasonable invested equity, and can demonstrate a need for the loan proceeds. You also must not be behind on any existing debt to the U.S. government. The only major difference between SBA loan types is that some are for-profit only, while others are nonprofit only.
Whether it’s an SBA loan or another loan type you want to pursue, BitX Funding can help match you with the best loan options by leveraging our network of over 75 lenders. The average SBA loan can take as much as 90 days to process, but with BitX Funding, you could get SBA funding in as little as 30 days. Let us help make the process easier. Apply here today!
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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.