If you’re interested in an SBA Express Loan, you’ll need to meet the eligibility requirements for the 7(a) loan program. This is the SBA’s most popular loan program, as it provides broad funding solutions and more specialized options for a wide range of businesses.

SBA 7(a) loans are offered up to $5 million and can be used for a variety of business purposes.

SBA loans are offered through three main programs: 7(a), CDC/504, and microloans. In fact, over $24 billion in SBA loans were approved in fiscal year 2019. Lenders are often more willing to underwrite loans backed by the SBA, since their stringent loan application process tends to reduce the risk that the borrower won’t repay their debt. In addition, you may also be required to pledge personal assets as collateral, such as your home or business equipment. For example, you’ll need to have an excellent personal credit score and show solid business financial statements to be approved. Yet, SBA loans are usually harder to qualify for, since the SBA has strict borrowing requirements. Essentially, the SBA guarantees a portion of the loan, while the SBA approved lender covers the rest. These loans are relatively flexible and can be used to cover working capital needs or fixed assets. What You Should Know About Taking Out Multiple SBA Loans: The Basics of SBA Loans:Īpplying for an SBA loan can be a great way to obtain financing from a bank, community development organization, or microlender at reasonable terms. Before applying for multiple SBA loans, there are a few things you should keep in mind, which we’ll detail in this blog post.

Still, while most SBA lenders will allow you to apply for multiple SBA loans, doing so comes with limitations and adds risk to your company balance sheet. For instance, many entrepreneurs take out more than one Small Business Administration (SBA) loan since their terms are often more favorable than other financing options. In some cases, taking out one business loan isn’t enough to meet your business’s objectives. In fact, small businesses borrow approximately $600 billion each year. Fortunately, if you lack the funds to sustain your business operations or recover from the past few months, you have options.Ĭredit cards, lines of credit, term loans, and outside investments are all common financial solutions for small business owners. Bottom Line The Sky’s the Limit, But Be Careful When Borrowing From the SBAĮspecially during these uncertain times, while your business navigates the ongoing COVID-19 pandemic, ample financing is more crucial than ever.What Are My Other Business Financing Options?.The Pros and Cons of Taking out Multiple SBA Loans.What You Should Know About Taking Out Multiple SBA Loans.

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