The SBA 7a loan is a great option for small businesses looking to get access to capital in
Understand the Basics of an SBA 7a Loan.
Before applying for an SBA 7a loan, it’s important to understand how it works. The Small Business Administration (SBA) 7a program provides government-backed financing for qualified businesses that need access to capital. During the application process, you’ll be asked to provide financial documents and explain how you intend to use the funds. Be sure to review the eligibility requirements and understand your repayment options before proceeding with the loan application.
Determine Eligibility for the SBA 7a Loan Program.
Before applying for an SBA 7a loan, you must ensure that you meet the eligibility requirements. According to the SBA, businesses must meet certain guidelines to qualify for this type of loan. These include having less than 500 employees, being in business for two years or more, and having a credit score of 650 or higher. You must also have sound business management and access to cash flow if you’re dealing with seasonal credit fluctuations.
Prepare Your Application Documents and Get Credibly Pre-Qualified.
Before you can apply for an SBA 7a loan, you must make sure that all of your required documents are in order and have been reviewed. This includes obtaining financial statements, tax returns, business plans, lease agreements and other relevant economic information. It’s also important to get pre-qualified with Credibly – an online lender – so that you can reduce the time it takes to receive loan approval from the Small Business Administration (SBA).
Meet the Requirements for Credit History, Business Structure, and Collateral.
Once you’ve assembled the necessary documents and pre-qualified with Credibly, the next step is to meet the requirements for the SBA 7a loan. Specifically, you must demonstrate an acceptable credit history, provide proof of ownership & business structure, and have sufficient collateral to secure the loan. It’s important to note that each lender may have additional criteria which they use to evaluate loan applicants. Make sure you do your homework and research all potential lenders before applying.
Submit Your Loan Package to Participating Lenders
Once you’ve gathered the necessary documents, completed the Credibly pre-qualification process and have met all SBA 7a loan requirements, it’s time to submit your package to participating lenders. You can apply for a loan directly through the SBA (Small Business Administration) or via approved lending partners. Make sure you’re prepared to answer any questions lenders may have about your financial history, collateral and other special requirements they may impose.