SBA Loans

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SBA Loans

Small business owners looking to take out a traditional term loan may turn to the U.S. Small Business Administration (SBA) to help with their financing needs. The SBA offers flexible loan options for all types of businesses – from startups to existing businesses – who need extra working capital to help grow their business.

The SBA is not a direct lender, but rather a federal government agency that works with local lending institutions, such as your nearest bank, to guarantee loans. The most popular SBA loan program is the 7(a) loan program, which guarantees a maximum of $5 million in loans to be used for nearly any business purpose.

Should I consider an SBA loan?

While the SBA makes it easier for small business owners to obtain term loans from traditional banks, for those seeking smaller loan amounts, a direct lender such as LoanLynx may be a better option. SBA loans require a good deal of time and effort to obtain, and require proof of the business owner’s financial stability. Personal credit score, collateral, and years of financial statements are required to apply for an SBA loan.

 

Further, if you need funding fast, an SBA program may not be ideal – the application and funding process could take up to 3 months. Check out the chart below to see how LoanLynx compares.

Compare Us: SBA Loans

SBA Loan LoanLynx Loan
Documentation:

  1. Multi-page sba loans application
  2. Previous 3 years of income statements and business balance sheets
  3. 2-year projected balance sheets and income statements
  4. 12 months of projected cash flow statements
  5. Previous 3 years of personal and business tax returns
  6. Business plan
  7. Accounts receivable aging report
Documentation:

  1. One-page loan application
  2. Previous 3 months of bank statements
  3. Previous 3 months of credit card statements
SBA Loans Collateral Required?Yes (typically 10%) LoanLynx Collateral Required?No
Average SBA Loans Application Time2-3 months Average LoanLynx Application TimeDecisions in minutes; funding in as little as 1 business day
Average Term60 months Average Term12 months

For businesses that qualify, aa LoanLynx loan is a faster and easier way to obtain needed funds. However, if your business requires over $250,000 and requires a payback period over years instead of months, the SBA offers a plethora of options to support your small business and provide the funding you need.

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