Frequently Asked Questions about Small Business Lending Administration Loans
1. What are the advantages of SBA financing for my business?
SBA loans offer longer terms which mean lower payments that allow you to retain more working capital
2. Is my business eligible for SBA financing?
More than 95% of the nation’s companies are classified as “small businesses” by SBA standards. Qualification requirements are set by total revenues and number of employees according to the industry. Most types of businesses qualify for SBA financing with the exception of speculative businesses or businesses engaged in gambling.
3. How much can I borrow?
The loan amount is limited only by the capacity to repay it. Coast’s SBA Lending Center offers SBA 7(a) financing up to 2 million and USDA Business & Industry Loan financing up to $12 million.
4. What can the funds be used for?
Loans can be used for virtually any business purpose, such as: purchasing real estate, property improvements, equipment purchases, business expansion, debt consolidation, franchise financing, constructing a new facility or purchasing an additional business.
5. Are SBA loans only for businesses that don’t qualify for traditional banking standards?
SBA financing is only offered to businesses that demonstrate the ability to pay debts. The longer terms allowed with SBA financing provide easier debt qualification based on lower payments.
6. Will the government be looking over my shoulder for the duration of my loan?
As with any commercial loan, your lender not the government monitors and services your loan. The government becomes involved only in the event of a default.
7. What are some common myths about SBA financing?
It does not take six-nine months to get funding. On average, SBA loans are processed in 15 to 45 days. You also don’t have to be “turned down” by a bank prior to applying.
8. What makes Coast National Bank’s SBA Loans better than other bank’s?
We are the county’s leading SBA lender it’s our specialty!