SBA Loans

The Gold Standard in Small Business Financing

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What to Expect

SBA Loans at a Glance

Loan Amounts

$50,000 - $5,000,000

Terms

Up to 25 years

Rate

Starting at Prime + 2.75%

Payment Options

Fixed monthly payments

SBA Loan 101

What are SBA Loans?

SBA loans are government-backed financing solutions that represent the gold standard for small business owners who want to expand. Because these loans are partially guaranteed by the Small Business Administration, they offer more favorable terms and flexible underwriting criteria compared to conventional loans.

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These loans provide the stability of long-term financing with competitive rates and predictable monthly payments. They can be used for various business purposes, from working capital and equipment purchases to debt refinancing and business expansion.

How do SBA Loans Work?

The SBA partners with approved lenders to provide these loans, guaranteeing a portion of the loan amount to reduce the lender's risk. This guarantee allows for better terms, including lower down payments and longer repayment periods. With typical terms up to 25 years and no prepayment penalties, SBA loans offer extremely competitive monthly payments.

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In most cases, the only collateral required is a blanket lien on business assets and a personal guarantee, making these loans accessible to businesses that might not qualify for traditional bank financing.

Benefits of Getting an SBA Loan Through Joseph Capital Network

Competitive Terms

SBA loans offer some of the most favorable terms available, including lower interest rates, longer repayment periods, and lower down payment requirements. This combination results in manageable monthly payments that help preserve your cash flow.

Flexible Use of Proceeds

SBA loans can support various business needs, including working capital, inventory purchases, equipment acquisition, debt refinancing, and marketing expenses. This flexibility allows you to address multiple business objectives with a single financing solution.

Expert Guidance

Our team of SBA specialists guides you through every step of the process, from application to closing. We understand the complexities of SBA lending and help ensure your application meets all requirements for optimal approval chances.

Building Business Credit

Successful repayment of an SBA loan helps establish strong business credit, potentially leading to even better financing options in the future.

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Minimum Requirements to Qualify

Our SBA loan programs are designed for established businesses with strong financials. While we evaluate each situation individually, these are our general requirements:

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- Minimum 2 years in business

- FICO score of 660 or higher

- Minimum annual revenue of $250,000

- U.S.-based business owned by citizens or permanent residents

- No outstanding tax liens

- No bankruptcies or foreclosures in the past 3 years

- Business debt service coverage ratio > 1.15x

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Understanding SBA Loans Requirements

SBA loans are a great option for small businesses. They are backed by the federal government through the Small Business Administration which makes them more affordable than other business financing options. However, they are much more difficult to acquire with strict requirements and an abundance of paperwork. Here are the initial factors you must consider before applying for an SBA loan.

Business Requirements

Your business must be for-profit and demonstrate stability with at least 2 years of operation. We evaluate revenue trends, cash flow, and overall business viability. A clear business plan and use of proceeds helps strengthen your application.

Financial Requirements

We conduct a thorough cash flow analysis using tax returns, financial statements, and bank statements. Strong cash flow that demonstrates ability to service the debt is essential, along with a clean credit history.

Documentation Requirements

Standard documentation includes 2 years of business and personal tax returns, 6 months of bank statements, current financial statements, business debt schedule, and proof of ownership. Additional documentation may be required based on loan size and use of proceeds.

If you meet these minimum requirements, you will then need to meet a plethora of additional financing and industry-based requirements that will be based on the size of the loan along with the intended use of the loan.