What is an SBA Loan?

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SBA loans are one of the most attractive business loans in existence. Many small business owners take out an SBA loan before looking into other options. Between lower interest rates and long repayment terms, SBA loans tend to give you funds without ruining your cash flow. New research has shown that 99% of all companies with 100+ employees apply for at least one type of federal or state funds when they are in need.

 

While small business loans can be obtained through financial institutions like traditional banks and online lenders, not all of the risk is taken on by either party. SBA loans are guaranteed by the SBA, a branch of the government dedicated to fostering stronger small businesses.

 

An SBA loan is one possible option for funding your business. A drawback of conventional lender SBA loans is the lengthy waiting time before it gets consideration - 8 months, to be exact. Unlike traditional lender processes, banks thoroughly review loan applications, business plans, personal credit score, and more before providing an answer to your application. When you go with an SBA loan to drive revenue in your business, it can significantly improve cash flow.

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How do you qualify for an SBA Loan?
 

There are different types of SBA loans, the underlying requirements for any types of SBA financing are very similar. To qualify, you will have to meet the following criteria:

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• You must be officially registered as a for-profit business, and you must be operating legally.

• Your business must have fewer than 500 employees, and less than $7.5 million revenue on average each year for the past three years

• You must show you’re investing your own time and money into the business, having “invested equity.”

• A good credit score - preferably above 680.

• A history free from recent bankruptcies, foreclosures, or tax liens.

• Having been in business for at least two years.

• Sufficient working capital (once you subtract liabilities from assets).

• You’ll need to prove you’ve got a sound business purpose for the loan you’re requesting, and that your intended funds usage is approved by the SBA.

• You’ll need to prove you’re not delinquent on any existing debts to the U.S. government (taxes, student loans)

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Why choose Avanta Financial Group for an SBA Loan?

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"We Provide Better Terms, Hassle Free Process and Faster Funding!"

Avanta Financial Group has eliminated this issue by streamlining the process to average 30 to 60 days! As the SBA official loan broker, we can speed up the funding process to complete it in nearly half the time, while also simplifying the long and complex procedure to make SBA funding much easier for you. With guidance from your Business Financing Advisor, the Entire process is streamlined so your business won't have to stress as they move forward towards success.

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