You might be wondering who can qualify for an SBA loan if you’re currently running a business. The following is some information about SBA loans, qualifications and more.
What Makes SBA Loans So Good?
SBA loans come from the Small Business Administration, and various lenders issue them. Many people are eager to get their hands on SBA loans because they’re such good options. One reason SBA loans are so desirable is that they have low interest rates.
The SBA loan rates are much lower than other types of business loans, and they have longer repayment periods. Some of them have repayment periods of up to 30 years. That gives a new business plenty of time to get in high financial standing to repay the advance.
What Are the Qualifications for an SBA Loan?
To qualify for an SBA loan, a business must meet several requirements. For one, it must be a for-profit organization. Secondly, the business needs to be conducting business within an eligible industry. An interested person can talk to an agent about the various industries and what it takes to qualify for help.
Another factor that applies to SBA loans is the length of time a business has been operating. Lenders like to see that a particular business has been operating for at least two years before issuing a loan. Furthermore, a business requesting a loan from the SBA must also be operating in the United States.
Aside from that, businesses requesting loans must show a need for such loans. For instance, the business owner will need to show a business plan for a new wing or proof of a temporary loss of business due to a pandemic.
What Types of Businesses Get the Most SBA Loans?
A variety of businesses receive SBA loans to fund their operations. Restaurants get many business loans from the SBA. Retail stores and hotels are popular for getting loans from the SBA as well. Other types of establishments that usually get SBA loans are law firms and accounting firms.
Agricultural businesses and farmers can receive SBA loans as well. According to Lantern Credit, the list of qualified businesses is extensive. Therefore, you should never assume that you don’t qualify. Instead, you can speak to an expert to find out more.
How to Get an SBA Loan
The first step to get an SBA loan is to contact a reputable provider of such loans. Make sure you have all the documents you might need to present, such as business plans, financial statements, business licenses and other information. A friendly financial expert will talk to you about your options and try to help you get the funds you need.
As you can see, getting an SBA loan is not so difficult. It will be in your best interest to reach out to a provider if you feel as though you may qualify for this type of loan.