subject: SBA Loan Requirements: Do You Meet Them? [print this page] SBA Loan Requirements: Do You Meet Them? SBA Loan Requirements: Do You Meet Them?
An SBA loan is a loan given to a small business. If you run a small business and is in dire need of a loan but the banks keep turning you down or have given you the run around, you should consider applying for an SBA loan. In these tough economic times, exploring other options for financing a business venture can give an aspiring entrepreneur the loan he or she needs. There are many private sector lenders who are willing and able to provide you with loans which are guaranteed by the government through the Small Business Administration (SBA) program.
The 504 SBA Loan operates as a partnership between a third party lender like Payon Capital Funding, a certified development company and the borrower. These types of loans offer many benefits to business owners, including low down payments, below market fixed interest rates and long-term financing.
SBA loan requirements vary depending on the type of SBA loan you are applying for. An SBA 504 loan made all the difference for me when I was looking to finance my property rental business. To be approved for that type of loan, the borrower must meet all the SBA loan requirements namely:
The borrower will need to have relatively good credit.
The borrower can not have defaulted on a government guaranteed loan in the past.
The borrower needs at least 3 years of direct industry experience.
The borrower will have 10% or more of their own money to put towards the project cost or equity in a property they already own.
There is also the SBA 7a program which is a little more flexible than the 504 program and can be used for business acquisition as well as real estate.
