4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

Connect With Us!  (877) 600-2487 (tel:(877)600-2487)  info@creditsuite.com (mailto:info@creditsuite.com)

 (https://www.facebook.com/CreditSuite)  (https://twitter.com/CreditSuite1)
 (https://www.youtube.com/creditsuite/S2Games?sub_confirmation=1)
 (https://www.linkedin.com/company/credit-suite)  (https://www.instagram.com/creditsuite)
 (https://www.creditsuite.com/podcast/)

(https://www.creditsuite.com)

HOME BUSINESS CREDIT BUSINESS LOANS PARTNER CREDIBILITY PRICING BLOG ABOUT US CONTACT US CLIENT LOGIN

t Suite Blog
nt information on getting credit and loans
our business
(/pricing/)
RE TO LEARN MORE

SBA Lending
Published By  Janet Gershen-Siegel (https://www.creditsuite.com/content-team) at  January 27th, 2021

Help
English

https://www.creditsuite.com/blog/sba-lending/ 1/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

Tweet Share

Contents
[ show ]

Can SBA Lending Help Your Business?

While not every business will qualify, SBA lending can benefit many companies. Is yours one of them?

What Does the Small Business Administration Do?

The SBA is a government agency with one real mission, to fund small businesses and otherwise help them succeed, w
of the United States. This independent agency was created in 1953, “to aid, counsel, assist and protect the interests of
free competitive enterprise and to maintain and strengthen the overall economy of our nation”.

Eligibility for SBA Loans

(https://info.creditsuite.com/27-ways-to-get-cash/)Lenders and loan programs have unique eligibility requirements. In
general, SBA loan eligibility is based on what a business does to receive its income, the character of its ownership, and
where the business operates. Even those with bad credit may qualify for startup funding.

Normally, businesses must meet size standards, be able to repay, and have a sound business purpose. The lender will
provide you with a full list of eligibility requirements for your loan. See https://www.sba.gov/document/support–table-
standards (https://www.sba.gov/document/support--table-size-standards).

More Requirements
Help
English

https://www.creditsuite.com/blog/sba-lending/ 2/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

General eligibility also includes being a for-profit business. Also, the business must be officially registered and operati
This means the business must be physically located and operating in the US or its territories. The owner much have v
must have invested their own time or money in the business, and exhausting other funding options. In short, the bus
from any other financial lender.

(https://info.creditsuite.com/27-ways-to-get-cash/)

SBA Lending May Include More Coronavirus Funding Options

This information does change, depending on what Congress passes and the president signs into law. Many of these o
periods and funding. Even if one doesn’t currently have funds, others could. It pays to check all available options.

SBA Lending Includes Economic Injury Disaster Loans

An EIDL loan provides economic relief to small businesses and non-profit organizations currently experiencing a tem
owners and non-profit organizations in all US states, Washington DC, and territories are eligible to apply. EIDL procee
working capital and normal operating expenses, like continuation to health care benefits, rent and utilities, and fixed

Agricultural businesses with 500 or fewer employees are now eligible for EIDL loans. The 500 or fewer employees is a
businesses, unless a larger business is still considered small under the SBA’s own standards. Principals with 50% or m
up to date on child support payments. The business cannot derive more than 1/3 of its gross annual revenue from leg

SBA Lending Can Come in the Form of SBA Express Bridge Loans
An SBA Express bridge loan enables small businesses which currently have a business relationship with an SBA Expre
quickly. These can be term loans or they can be used to bridge the gap while applying for an EIDL loan. This loan will
proceeds from the EIDL loan.

Help
English

https://www.creditsuite.com/blog/sba-lending/ 3/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

(https://www.creditsuite.com)

0:58
SBA Debt Relief
The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, a
status, as well as new 7(a), 504, and microloans disbursed before 9/27/20. This relief is not available for Paycheck Prote
Borrowers do not need to apply for this assistance.

The SBA will automatically provide this relief as follows: for loans not on deferment, SBA will start making payments w
loan. They will make six monthly payments. For loans currently on deferment, SBA will start making payments with t
deferment period has ended. In this case, they will also make six monthly payments. For loans made after 3/27/20 and
will start making payments with the first payment due on the loan. Again, they will make six monthly payments.

SBA lenders have been instructed to not collect loan payments from borrowers. If a borrower’s payment was collecte
inform the borrower that they have the option of having the loan payment returned by the lender or applying the loa
balance after the SBA’s payment.

More SBA Debt Relief

This is for current SBA Serviced Disaster (Home and Business) Loans. If your disaster loan was in ‘regular servicing’ sta
automatic deferments through 12/31/20. But automatic deferral has some specifics.

Interest continues to accrue on the loan. 1201 monthly payment notices will continue to be mailed out. They will show
is due. The deferment will not cancel any established Preauthorized Debit (PAD) or recurring payments on a loan. Bo
through Pay.Gov or an online bill pay service are responsible for canceling these recurring payments. But borrowers t
through Pay.gov must contact their SBA servicing office to cancel it.

Borrowers preferring to continue making regular payments during the deferment period may continue to do so duri
apply those payments normally as if there was no deferment. After this automatic deferment period, borrowers must
interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.

SBA’s Lender Match

The SBA has a lender matching tool whereby you can connect with SBA-approved CDFIs and small lenders. CDFIs are
institutions. They are private financial institutions with a 100% dedication to delivering responsible, affordable lending
wealth, and other disadvantaged people and communities join the economic mainstream. Help
English

https://www.creditsuite.com/blog/sba-lending/ 4/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

Lender Match is only for SBA-guaranteed loans. Do not use it for EIDL loans. You can get a match within 2 days. This c
contact information only for lenders expressing an interest in providing your business with a loan.

(https://info.creditsuite.com/27-ways-to-get-cash/)

SBA Lending Includes Traditional SBA Loans

The SBA still provides three types of loans which predate the COVID-19 pandemic. They are 7(a), 504, and microloans.

SBA 7(a) Loans

This is the SBA’s main program for providing financial assistance to small businesses. Terms and conditions, like the g
may vary by type of loan.

A standard 7(a) loan can be for up to $5 million. The maximum SBA guarantee is 85% for loans up to $150,000 and 75%
interest rate varies but cannot exceed the SBA maximum. Turnaround is 5 – 10 business days.

Lenders do not have to take collateral for loans up to $25,000. For loans over $350,000, the SBA requires that the lend
maximum extent possible up to the loan amount. If business fixed assets do not fully secure the loan, the lender may
using 10% of current book value for the calculation. Plus the lender must take available equity in the personal real est
principals as collateral. See sba.gov/partners/lenders/7a-loan-program/types-7a-loans (https://www.sba.gov/partners/le
loans).

SBA CAPLines
This is a program under 7(a). It helps small businesses meet short-term and cyclical working-capital needs. There are
contract, builders, and working.

Seasonal CAPLines
With the Seasonal CAPLines program, borrowers must use the loan proceeds solely to finance the seasonal increases
— or in some cases associated increased labor costs. It can be revolving or non-revolving. With the Contract CAPLines
labor and material cost associated with performing assignable contracts. It can be revolving or non-revolving.

Builders CAPLines
With the Builders CAPLines program, the line can finance direct labor and material costs for a small general contract
Help
renovating commercial or residential buildings. The building project serves as the collateral. It can be revolving or non
English

https://www.creditsuite.com/blog/sba-lending/ 5/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

Working CAPLines
So this program is an asset-based revolving line of credit. It is for businesses unable to meet credit standards associat

This program provides financing for cyclical growth, recurring and/or short-term needs. Repayment comes from conv
which is paid to the lender. Businesses continually draw from this line of credit, based on existing assets. And they rep
line generally for businesses that provide credit to other businesses.

SBA Lending Includes SBA Express

This program is also under 7(a). It features an accelerated turnaround time for SBA review. The SBA will respond to yo
to $350,000. The maximum SBA loan guarantee is 50%. Lenders do not have to take collateral for loans up to $25,000.
policy for loans over $25,000 up to $350,000.

SBA 504 Loans

Also called the Certified Development Company Loan program. CDCs are nonprofit corporations promoting econom
communities via 504 loans. The SBA authorizes CDCs to provide financing to small businesses with the help of third-
generally at a $5 million cap. But certain eligible energy-efficient or manufacturing projects may qualify for more tha
to $5.5 million each.

A low down payment (often 10%) conserves your working capital. So you can get 10, 20 or 25 year terms. Use for long-t
modernization. This is often real estate or large equipment. Refinancing of large equipment and/or owner-occupied c
possible. See sba.gov/brand/assets/sba/sba-lenders/504-Loan-Fact-Sheet-Borrower-Version.pdf (https://www.sba.gov/
Loan-Fact-Sheet-Borrower-Version.pdf).

SBA Lending Includes SBA Microloans

So this program provides loans up to $50,000. The idea behind these loans is to help small businesses and specific no
and expand. So the average microloan is about $13,000. Often, intermediaries require some type of collateral and the
owner. See sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/microloan-program%20 (https://www.sba.go
offers/sba-loan-programs/microloan-program%20).

(https://info.creditsuite.com/27-ways-to-get-cash/)

Alternatives to SBA Loans Help

English

https://www.creditsuite.com/blog/sba-lending/ 6/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

Of course there are alternatives to SBA loans. Not eligible? Or do you need more? There are plenty of alternatives to S
on your business’s age and revenue, and your FICO score. But there are options out there for you. Credit Suite can he

SBA Lending: Takeaways

The Small Business Administration has various eligibility requirements, and a number of different types of loans. The
COVID-19 pandemic. But they also have more traditional loans with different funding sources. Always check the fine p
don’t forget that Credit Suite can help you choose your best funding option.

Leave a Reply
Your email address will not be published. Required fields are marked *

Comment *

Name * Email * Website

Save my name, email, and website in this browser for the next time I comment.

Search the Blog

Help
English

https://www.creditsuite.com/blog/sba-lending/ 7/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

(https://info.creditsuite.com/27-ways-to-get-cash/)

POPULAR POSTS
Get the Secrets of Which SIC Codes Get You Denied (https://www.creditsuite.com/blog/which-sic-codes-get-you-denied
How to Avoid High Risk NAICS Codes – This is Foolproof! (https://www.creditsuite.com/blog/how-to-avoid-high-risk-naic
Get Business Credit Cards with EIN Only (https://www.creditsuite.com/blog/business-credit-cards-with-ein-only/)
A Complete Guide To Using Business Credit to Buy Real Estate (https://www.creditsuite.com/blog/using-business-credit
5 Vendor Accounts That Build Your Business Credit (https://www.creditsuite.com/blog/5-vendor-accounts-that-build-yo

Subscribe to Our 
Weekly Email Newsletter to Get Actionable Credit Building & Financing Info

First Name *

Last Name *

Email *

​HELP MY BUSINESS FUNDABILITY

We Respect Your Privacy


Help
English

https://www.creditsuite.com/blog/sba-lending/ 8/9
4/6/22, 10:11 PM SBA Lending | Check Out SBA Loans and Alternatives |Credit Suite

© Copyright 2014-2022 - Credit Suite - All Rights Reserved. Privacy Policy (/privacy) | Terms and Conditions
(/termsandconditions ) | Media Kit (https://s3.amazonaws.com/CreditSuite/Misc+Files/Credit+Suite+Media+Kit+2.zip)
 (https://www.facebook.com/CreditSuite)  (https://twitter.com/CreditSuite1)
 (https://www.youtube.com/creditsuite/S2Games?sub_confirmation=1)
 (https://www.linkedin.com/company/credit-suite)  (https://www.instagram.com/creditsuite)
 (https://www.creditsuite.com/podcast/)

Help
English

https://www.creditsuite.com/blog/sba-lending/ 9/9