Unsecured Loans

SBA Business loan programs are out there for individuals that wish to start a new business or expand an existing business. There are several loan programs that you can apply for they each have their own criteria that must be met in order to get the SBA business loan guarantee. The Small Business Association does not actually give the loans themselves they guarantee the loan through your lender. They also offer service that will assist you in your business plan like consulting, and management training.

The main part of the application process is your business plan you must have one in place to submit your request for loan assistance. Making you business plan is very important, as it will be the main stepping-stone towards your getting approval for your SBA business loan. The small business association will assist you and has tools in place to help when you are ready to write up your plan, they want you to succeed. Therefore, they are generally very helpful.

One of the main criteria you must meet to be eligible for an SBA business loan is that your business falls within the guidelines as to size. The Small Business Association is there to help the small business owner. If you meet that guideline then it is time to decide which loan you are going to apply for. If you are in one of the hurricane disaster areas you get special consideration, and they process your loan aid request much quicker then would normally happen.

The most commonly used SBA business loan is the 7a loan, you approach your lender, and most banks in the United States participate in the 7a program. The lender decides whether to make the loan to you and whether or not they will require the SBA to guarantee a portion on the loan. The maximum payout for a small business loan is 1.5 million dollars so if you were to borrow two million dollars the SBA could guarantee 1.5 million to your lender. As you can see this is a great incentive to your lender to make the loan to you. They are guaranteed 75% of their loan risk back if you default.

To qualify for the 7a SBA business loan you must be able to demonstrate good character, that you have the ability to pay your bills and that you have always done so. You also must not have another means of getting the required money. The SBA will not guarantee the loan for you if you have other options available to you.

Your best option when you are thinking of Appling for a SBA business loan is to do your research and use all of the tools that are available to you so that you can find the proper loan program and one that you meet the criteria. You can meet with a consultant at your local SBA office and they can give you all of the information that you will need to proceed with your project.

For more information about SBA business loans, see SBA Business Loan.