Loan FAQs

An SBA loan is a small business loan that is guaranteed in part by the U.S. Small Business Administration and typically made by a bank.

SBA loans offer longer terms, better rates, and lower monthly payments than other loans. With our process a small business can apply online and get funds in as little as 7 days.

We facilitate SBA 7(a) loans for equipment purchases, working capital, debt consolidation, and SBA 7(a) loans for commercial real estate purchases or refinance.

Businesses that qualify for an SBA loan from a SmartBiz marketplace bank typically have more than $100,000 in annual revenue. Most of our businesses are profitable and cash flow positive. All are able to show that they can afford to make our monthly loan payments. Learn More

SBA 7(a) Working Capital or Debt Consolidation Loans from $30,000 to $350,000

• Minimum 2 years in business
• U.S. based business owned by US citizen or Lawful Permanent Resident who is at least 21 years old
• Good personal credit score of 640 or higher
• No outstanding tax liens
• No bankruptcies & foreclosures in the past 3 years
• No recent charge-offs or settlements
• Current on government-related loans

SBA 7(a) Commercial Real Estate Loans from $500,000 to $5 million

• The real estate must be majority owner-occupied. This means that at least 51% of the square footage of the property you’re buying must be occupied by and used by your business.
• Time in Business: 2+ Years
• Business owners must have personal credit scores above 660
• Cash Flow: Sufficient business and personal cash flow to service all debt payments demonstrated by 3 years of tax returns and interim financial data
• SBA Specific Requirements: No delinquencies and/or default on government loans

All business owners who own 20% or more of the business must provide a personal guarantee. Married couples who collectively own 20% or more of the business when their shares are combined, must both provide a personal guarantee.

Nearly every industry is elibible. The few that are NOT eligible are:

• Mining
• Bail bond
• Gambling
• Life insurance
• Oil wildcatting
• Religious teaching
• Mortgage servicing
• Pawn or private clubs
• Real estate development
• Primarily political and lobbying activities

Funds can be used for:

• Working capital
• Debt refinancing
• Commercial real estate
• Hiring employees
• Purchasing equipment
• Marketing programs
• Expanding your business
• Inventory/operational expenses

SBA loan funds can be used in different ways depending on how much is borrowed. 

For a detailed explanation, click here.

Yes, we have helped many small business owners in this situation to obtain an SBA loan.

In such cases we may be able to get you qualified for a bank term loan. We'll work with you to get the best financing possible given your situation. We can also work with you to repair your credit so you will be more likely to qualify for an SBA loan.

Yes, as your business grows you may need  additional capital. Contact us for details. 

This is a proprietary system the SBA provides to lenders to determin if the SBA will allow them to lend with SBA backing.  We can work with you to help you improve your E-Tran Score if needed.

Our lending partners offer SBA 7(a) working capital loans with a 10 year term. SBA 7(a) Commercial Real Estate loans come with a 25-year repayment term.

Bank loans from our lending partners have a 2 - 5 year term.

SBA interest rates vary depending on the loan amount.

SBA 7(a) Commercial Real Estate Loans

• 7.00% to 8.25% (Loans have a fixed rate of Prime Rate plus 2.00% to 2.75% *or a variable rate of 1.50% to 2.75%) for loans $500,000 - $5 million*

SBA 7(a) Working Capital and Debt Consolidation / Refinance

• 9.25% (Prime Rate plus 3.75%) for loans $30,000 - $49,000
• 8.25% (Prime Rate plus 2.75%) for loans $50,000 - $350,000

Bank Term Loans

• Fixed Interest Rate - 6.99% - 26.99% (based on borrower’s business credit and financial profile as well as the term of loan)

For a detailed explanation, click here. 

For a quick summary of loan rates, click here. 

If you are purchasing commercial real estate then a deposit will be required. However, no deposit is required for working capital loans.

For CRE loans over $500,000 a first lien on the real estate is required. Based on the appraised value, you must have at least 10% - 20% equity in the real estate for a refinance or put 10% - 20% down for a purchase of the real estate. If you qualify for the rent replacement option with minimal down payment, your loan payment cannot exceed the current monthly lease expense.

To determine if you are pre-qualified we analyze a soft pull of your credit report, which does not impact your credit score. 

When your application progress to the funding stage, at which point you have been matched with a lender who is likely to approve your loan, then the lender will perform a hard pull, which is classified as an inquiry on your credit report.

Generally we will need:

• 2 years of personal and business taxes and bank statements
• Current year income statement and balance sheet
• Current outstanding debt / loan information

Bank term loans require a lien on assets, and there is no minimum requirement on the value of such assets.

You can e-sign your closing documents to save time.

Upon proper completion of the application you will typically receive funds in as little as 3-7 days.