Did you know almost any operating small business can apply for a Small Business Administration (SBA) loan?
As a business owner and entrepreneur, you should consider applying for SBA funding. SBA financing offers a wide range of credit options, extended time to repay loans, and small down payments.
Make sure you know how SBA loans work and understand your program options before applying.
Follow the guidelines.
The SBA doesn’t loan money directly to small businesses. SBA funding is provided by approved lenders, like Truist. The SBA guarantees financing and sets guidelines, reducing risk for lenders and making it easier for businesses to get their applications approved.
To meet general eligibility requirements for an SBA loan, you must own a for-profit business operating in the U.S. or its territories and prove that you’ve invested equity in that business.
Small businesses can apply for SBA loans ranging from $500 to $5.5 million. Capital can be used for most business purposes—from real estate and equipment purchases to ownership transitions and working capital.
Combine your capital projects.
SBA-guaranteed loans typically have competitive fees and rates, and some include unique benefits such as counseling and education. Most feature flexible overhead and low collateral requirements.
If your company requires financing to meet several capital needs at once, conventional lending agreements may force you to take out multiple loans with different rates and terms.
An SBA-guaranteed loan allows you to combine all your capital projects into a single loan. Simpler financing enables you to focus on opportunities to expand your business.
Define your mission.
The SBA offers a variety of programs tailored to funding need and business type. To figure out which is best for you, start by defining your company’s mission.
What’s your business strategy? What are you looking to accomplish? What are your capital needs?
To start your SBA loan application, you’ll need at least 2–3 years of solid financial statements behind your funding request. Not sure what to include? Seek advice from bankers with SBA expertise, like Truist. An experienced lender can guide you through assembling the documentation you’ll need.
Be transparent.
As a business owner, you probably have a clear vision for your company’s future. Make sure you work with an institution with deep SBA experience—like Truist—whose banking team can help make your vision a reality.
Be open about issues that might affect your company’s ability to secure a loan. If your business faces any challenges, be sure to share them early on so your lender has time to offer a solution.
Build a team.
SBA financing can provide your small business with a range of loan options and competitive rates and terms. Engage trusted financial advisors like your banker, attorney, or accountant to support you as you go through the application process.
Ready to apply for an SBA loan? Find an experienced SBA lender, like Truist. Bankers familiar with SBA financing will be able to offer advice and technology to help process your loan application quickly. Skilled lenders may even be able to fast-track your application with the SBA.
Is SBA financing the right option for your company?
Can an SBA loan help your business? Talk to your Truist relationship manager or get your SBA application started today.