What is the maximum loan amount for a SBA 7(a) loan?
The maximum SBA 7(a) loan amount is $5 million dollars.
What industries are eligible for SBA financing?
Almost any for-profit businesses are eligible. Businesses that are ineligible include: businesses engaged in lending; passive businesses; businesses engaged in illegal activities, gambling, pyramid plans; businesses engaged in promoting religion; businesses that restrict patronage; and businesses providing prurient sexual material.
How long does it take to get a SBA loan?
So many people have heard horror stories about SBA loans taking forever to get funded. That can certainly happen when you go to an inexperienced lender, or a bank that does a couple of SBA loans a year. At ReadyCap Lending, a SBA loan takes just as long as a standard conventional loan. All we do is SBA loans, and our staff has decades of experience doing them. From the time a customer submits a complete application and all the checklist items, a typical deal can fund in 45 to 60 days.
Are personal guarantees required for SBA 7(a) loans?
Yes. Any owner with a 20% stake or greater must personally guarantee the loan. If a married couple jointly owns a combined 20% of the business, then both must guarantee.
What can a SBA loan be used for?
SBA loans can be used for many financial business needs, such as: purchase and refinance of real estate and equipment; business acquisitions; business start-ups, debt consolidation, and working capital.
What size businesses qualify for SBA 7(a) financing?
Most small businesses qualify. Small is a relative term. To be eligible, a business must have average net income of less than $5 million for the last two years, and the maximum tangible net worth of the applicant and the affiliates cannot be more than $15 million.
How do I apply for a SBA 7(a) loan?
What types of fees are associated with a SBA loan?
SBA 7(a) loans do have a guarantee fee associated with them, which is an upfront fee paid to the government for guaranteeing the loan.
When should I consider a SBA 7(a) loan versus a conventional loan?
Always! Each time you face a financing need, the SBA 7(a) loan product should be considered. Examples of times when 7(a) financing is most attractive include:
- I want a lower down payment.
- I want a lower monthly payment.
- I do not have three years in business.
- The bank says my debt service coverage is tight.
- The bank is averse to my industry.
- I want to finance my closing costs.
Why choose ReadyCap Lending?
As a non-bank, dedicated SBA Lender with a management team averaging over 20 years each, we can provide service, creativity and product knowledge second-to-none. We can get your deal funded in a swift, professional manner. Better yet, you can keep your large business investment out of the banks that handle your day-to-day business banking activities, leaving you free to bank where you want to bank.