Finance Start-Up
SBA Loans FAQs Approximately 95% of all businesses are eligible for SBA assistance. Size standards vary widely depending upon the industry; however, as a general rule, your business is within SBA size limits if it is in manufacturing or wholesaling with fewer than 100 employees or in retailing or service with annual sales under $5,000.000 To find out more about size standards, call the SBA Office of Size Standards at (202) 205-6618. No, you do not have to be turned down by a lender to qualify for a loan guaranteed by the SBA. The SBA does not let loan minimums. Many lenders may prefer to process loans for under $100,000 under SBA's LowDoc program. The maximum amount the SBA can guarantee is generally $750,000. A borrower's capital contribution generally must be one-fifth to one-third of the total project cost. A credit decision on a complete loan package is usually made within ten working days after it is received by the SBA, not including bank processing time. This assumes that the borrower and lender have provided all the information necessary to process the loan. SBA loan forms are available from a participating lender, who will also be able to provide information about both the bank and SBA documentation required. The above text is taken from Small Business Resource Guides published for individual SBA District Offices in co-sponsorship with RENI Publishing of Winter Haven, FL 33880-3052. SBA's participation in this publication is not an endorsement of the views, opinions, products, or services of the publisher or any advertiser or other participant appearing herein. All SBA programs or co-sponsored programs are extended to the public on a nondiscriminatory basis. Individual District Office editions are copyrighted. SBA Auth. No. 97-7110-64. Certification programs can help you market your business to both large business and government procurements. There are two core certification programs: the 8(a) Business Development Program and the HUBZone Program. You have done your homework: you have a complete business plan, you know where you want to operate, you know how much cash you will need, and you have specific information on employee, vendor, and market possibilities. You now may want someone to look over your plans objectively. Contact the business department at a local college for another opinion. A SCORE representative at the Small Business Administration can also review your work and help with the fine-tuning. Then, when you have made the final decision to go ahead, it is time to call the bank and get going. Good luck! All of SBA's programs and services are extended to the public on a nondiscriminatory basis. |