Millions of Americans work for themselves with small businesses, but how do they get a small business loan?
The process of getting the loan can be complex, but it may be worth it.
If you take your time to carefully execute the application, it will be easier.
What are small business loans?
It’s part of the Small Business Administration’s loan programs.
The name is after Section 7(a) of the Small Business Act.
The point of these programs is to help small companies earning a profit that cannot get loans or financial assistance anywhere else.
Who can get small business loans?
The loans are given based on the business, not the owners.
The SBA gives their loans out to businesses, in the business’s name.
Not owners of the business.
Requirements to obtain small business loans
- Meet standards set forth by the SBA
- Must be for profit
- You must not already have the ability to provide financing
- You need to be able to demonstrate repayment
There may be other criteria you need to meet in addition to this.
You’ll need to get your credit score to see if you qualify for these types of loans.
There are certain instances where you may be better off getting an online business loan from lenders.
This is true for anyone lacking collateral.
It may also be true if you need the funds immediately or haven’t spent a lot of time in business.
Small loans online range between $1,000 and $5 million dollars.
The term of the loan can be as long as 25 years if it’s for real estate and 7 years for working capital from the SBA.
The highest amount you’ll see from the SBA is $2 million.