What Do I Need to Qualify for an SBA Loan?
Due to the recent pandemic, many small companies and businesses are experiencing fiscal shortfalls and relying on creditors to get by. A Small Business Administration loan, or SBA loan, is one way that entrepreneurs can survive these troubled times.
While the criteria for qualification has relaxed a bit due to the current economic crisis, the general requirements for approval include the following:
One area that the Small Business Administration may look at when determining if you are qualified to borrow is your business experience: how long have you been in business? If you are a new company, they may look at your past endeavors and qualifications before approving any business loans.
Do you have any collateral to secure your loan? This isn’t always real estate, but often is inventories, stock, or equipment, too. Talk to your lender to learn more and to determine what you have that qualifies as collateral.
What are your company revenues like? Right now, the SBA is offering small business grants and loans to help restore revenues and pay staff; visit their website to find out more about funds for economic disaster relief. Lenders for loans of any kind may want documentation of potential and past revenues before agreeing to lend money.
Naturally, any lender is going to look at your company’s credit score and rating. This helps them tease out whether you are vigilant about paying creditors, or if lending money to your business is risky. The threshold for approval is going to vary depending on the amount borrowed, terms of the loan, and the lender that you utilize.
Wondering if you qualify for an SBA loan? You may have more borrowing options than you realize to help get you through these hard times. Learn more about your money; visit Advanced Commercial Capital LLC today.