SBA Loans

SBA FUNDING

Both startups and established business owners need working capital to buy equipment, cover operating costs and or expand operations. Getting the working capital you need from conventional lenders, however, is a long shot unless you have been In business for several years, own assets and or have established business credit. If your seeking funding to start a new business your funding options are even more limited than what’s available to established businesses. Even if your business idea is investment-worthy, you will have to give up a portion of your business and in some cases, control as well. 


If neither of these business financing options work for you, a small business startup loan backed by the SBA can be the funding solution you need to start, succeed and grow your dream business.   


Advantages of SBA business loans.


  • More likely to be approved because the SBA guarantees a certain percentage of the loan projection-based underwriting (which means startup entrepreneurs or business owners can obtain startup business loans based on profitability estimates)   
  • No collateral requirements for business loans less than 350k
  • Higher loan amounts 
  • Lower down payments 
  • Lower interest rates 
  • Longer payment terms 
  • No prepayment penalties 
  • Gives special consideration to women and minority business owners 


SBA business loans: a brief overview of some of the most popular SBA programs


OUR TEAM OF QUALIFIED EXPERTS SPECIALIZE IN both IDENTIFYING THE RIGHT LOAN FOR YOUR’RE SPECIFIC SITUATION, pairing you up with the right SBA preferred lender and getting you approved. The SBA’s programs are tailored to small businesses and individuals who may otherwise not be able to obtain various types of business financing, including small business startup loans.  The SBA 7(A) business loan program, of the most popular programs, can be used for a variety of purposes.   


SBA 7(A) LOAN:


  • Loan amounts: up to 5 million
  • Terms: up to 10 years
  • Payments: monthly
  • Eligible entity types: llc, s-corp, c-corp & partnership
  • Industry types: limited to specific industries
  • MINIMUM credit scores: 680 
  • Collateral requirements: yes
  • Funding time frame: AS FAST AS 30 DAYS
  • INCOME VERIFICATION: YES
  • USE OF FUNDS: PURCHASE NEW BUSINESS, SUPPLIES, INVENTORY, MACHINERY, EQUIPMENT, SUPPLIES, INVENTORY, LAND EXPAND PRE-EXISTING BUSINESS AND FINANCE/CONSOLIDATE DEBT
  • JOB CREATION REQUIREMENTS: NO
  • Down payment required: purpose of loan dictates whether a down payment is required. Down payments are at least 10% of the loan


THE SBA 8(A) PROGRAM IS A BUSINESS DEVELOPMENT PROGRAM DESIGNED TO ASSIST DISADVANTAGED GROUPS LIKE WOMEN AND MINORITY ENTREPRENEURS TO COMPETE IN THE AMERICAN ECONOMY THOUGH BUSINESS DEVELOPMENT. IF YOU ARE INTERESTED IN GOVERNMENT CONTRACTS, THIS COULD VERY WELL BE THE PERFECT FUNDING SOLUTION FOR YOU.  


SBA 8(a) Business development loans.


  • Loan amounts: up to 4 million for goods & services; up to 6.5 million for manufacturing
  • USE OF FUNDS: receipt of sole-source government contracts
  • Terms: up to 10 years
  • Payments: monthly
  • Eligible entity types: llc, s-corp, c-corp & partnership
  • Industry types: limited to businesses owned by 51% or more members of socially or economically disadvantaged group
  • Credit requirements: case by case basis
  • Collateral requirements: NO
  • REQUIRED DOWN PAYMENT: no
  • Funding time frame: 60 to 90 days
  • INCOME Verification: yes
  • Business INCOME RESTRICTION: net worth cannot exceed 4 million in assets. Personal income restrictions: net worth cannot exceed 250K in the last three years
  • JOB CREATION REQUIREMENTS: no
  • Time in business requirement: 2 years


The certified development company (CDC) 504 business loan program is a great fit for entrepreneurs seeking to purchase fixed assets like machinery and purchase or build owner occupied commercial real estate. Here are the key eligibility details:


SBA 504 LOANS.


  • Loan amounts: up to 5 million
  • USE OF FUNDS: FIXED ASSET Acquisitions only (CANNOT BE USED FOR INVENTORY, DEBT CONSOLIDATION OR WORKING CAPITAL)
  • Terms: up to 25 years
  • Payments: monthly
  • Eligible entity types: llc, s-corp, c-corp & partnership
  • Industry types: limited to specific industries; NO SPECULATIVE OR PASSIVE ACTIVITIES
  • Credit scores: 685+
  • Collateral requirements: NO
  • REQUIRED DOWN PAYMENT: at least 10%
  • Funding time frame: 60 to 90 days
  • INCOME VERIFICATION: LAST TWO YEARS TAX RETURNS
  • INCOME RESTRICTION: BUSINESS MUST HAVE AVERAGE NET INCOME OF 5 MILLION OR LESS
  • JOB CREATION REQUIREMENTS: YES


The SBA OFFERS THREE DIFFERENT TYPES OF EXPORT LOANS DESIGNED TO PROVIDE BUSINESSES WITH THE NECESSARY FINANCING FOR ENGAGING IN EXPORT ACTIVITIES, INTERNATIONAL TRANSACTIONS AND ENTERING INTO NEW FOREIGN MARKETS. BELOW IS A SUMMARY OF THE KEY ELIGIBILITY CRITERIA:


SBA EXPORT LOANS:


  • Loan amounts: up to 5 million
  • Terms: up to 25 years
  • Payments: monthly
  • Eligible entity types: llc, s-corp, c-corp & partnership
  • MINIMUM credit scores: 680
  • Collateral requirements: yes (SHORT TERM INVOICES OR PROJECT CONTRACTS
  • Funding time frame: 60 to 90 days
  • TIME IN BUSINESS: 1 YEAR OR EXPERIENCE
  • USE OF FUNDS: TO DEVELOP OR EXPAND EXPORTING OR INTERNATIONAL TRADE
  • JOB CREATION REQUIREMENTS: NO


With many more additional SBA loan programs, while there may be small variations, the rates and terms will be similar. Here, at lone star corporate funding, our specialized and highly experienced consultants will put together you’re SBA loan application and ensure your approval with the right lender. Whether it be an alternative loan, conventional business loan, SBA small business startup loan or aged shelf corporation funding, you can be certain that you are in safe hands with lone star corporate funding.

DISASTER RELIEF BUSINESS LOANS

As a response to the widespread impact of the Coronavirus, the SBA is providing emergency forgivable business loans up to $10 million per business! MORE INFORMATION? 

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