Flexibility in use, from acquiring real estate to equipment purchases.
Be matched with a lender in the 7(a) Loan Program according to your needs.
Requirements to qualify
While requirements will vary by lender, you will generally need to:
Be an operating business.
Operate for profit.
Be located in the U.S.
Be small under SBA Size Requirements.
Not be a type of ineligible business.
Not be able to obtain the desired credit on reasonable terms from non-Federal, non-State, and non-local government sources.
Be creditworthy and demonstrate a reasonable ability to repay the loan.
Check the SBA website for additional terms, conditions and eligibility.
BlackStone Funding
How does this work?
An SBA loan is a form of financing backed by the U.S. Small Business Administration (SBA). While private lenders provide the funding, the SBA guarantees up to 85% of the loan amount, reducing the risk for lenders and making it easier for small businesses to secure financing.
Although SBA loans can be more challenging to qualify for, they offer low interest rates, flexible terms, and other valuable benefits. Whether you’re considering a 7(a) loan, a microloan, disaster relief funding, or debt consolidation, there are various SBA loan programs designed to meet your business needs. Blackstone Funding LLC is here to help you explore and navigate the options best suited for your business goals.
SBA loan rates and terms can be more favorable as they’re federally-backed.
SBA Loan programs offer both small and large funding amounts for optimal coverage.
Businesses typically not approved for traditional bank loans could qualify for SBA loans.
With larger loan amounts and low rates, these small business loans can be ideal for growth initiatives.
Cons
SBA loan applications are more strict and time-consuming than applications for other term loans or working capital products and can take months to get approved.
The borrower may be required to make a down payment.
Collateral may be required and low-credit applicants may not be approved.
Time to receive funds is slower, which means that SBA financing may not be a good fit for certain business needs.
In general, SBA loans require a minimum of two years in business, $100,000 in annual revenue, and a credit score of 620 or higher. However, different SBA lenders may require elevated criteria.
The exact time it takes to be approved for an SBA loan depends on your application and your lender.
SBA 7(a) loans typically take two to three months to be approved but if you are working with an SBA Preferred Lender, your application may be approved much faster, relatively speaking.
Generally speaking, SBA loan credit score minimums typically range from 620-640+. That said, the credit score needed for an SBA loan depends on the specific lender you work with and which SBA program is applying for.