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Getting a business loan can be the difference maker when starting a new venture or even expanding upon an existing offering, and there’s significant funding available to qualify businesses. In fact, the Small Business Administration (SBA) approved over $31 billion through its 7(a) loan program in 2024 alone.

But this money doesn’t come without some work on your part, and most reputable business loans require documentation of your creditworthiness and ability to repay. Whether you’re trying for an SBA loan or another funding option, you’ll need to provide the proper paperwork to back up your case.

Why preparation matters in the loan process

Having your documents complete and organized can significantly speed up the approval process. Without them, you could experience an unnecessary delay or even decline (even if you’re otherwise well-qualified). For each piece of missing or unclear documentation, the lender needs to reach out at least once, and too many back-and-forths could leave your loan in limbo.

Worse yet, a messy or incomplete set of loan documentation may give the lender the wrong impression. It’s more likely that you’ll hand over incorrect calculations or outdated tax papers instead of what’s needed to prove your profitability and get the “yes” you really need.

There’s no one-size-fits-all application packet you can use to apply for multiple loans, but many of the required documents will be the same from lender to lender. Whether this is your first loan attempt or your third, this loan application checklist can help you save time and frustration in your funding journey.

The ultimate small business loan checklist

Even if you’re not looking to borrow money just yet, having these essential documents handy can reduce preparation work when the time comes.

Business information

• Legal business name: The official, registered name of your company and any “doing business as” (DBA) names, if applicable. You can find this on your state or local business registration documents.
• Business address and contact info: The physical location and primary contact details for your company, as listed on company records, utility bills, or vendor statements.
• Business structure: Listed as Limited Liability Corporation (LLC), S-Corp, C-Corp, partnership, or sole proprietor in your incorporation documents or state registration filings.
• Employer Identification Number (EIN): This IRS-assigned tax ID number can be found in your confirmation letter or online IRS account.
• Business license and registrations: These are usually given by your local, state, or federal licensing authority, depending on your business type.

Loan request details

Consider how much and what kind of loan you’ll need before you apply. You’ll need to provide:

• Loan amount requested: The specific dollar amount you wish to borrow, including any fees.
• Intended use of funds: A brief explanation of how you’ll spend the money, including hiring, new equipment, or working capital.
• Desired loan type: The type of funding you’re seeking (example: an SBA 7(a) loan, or other, like a line of credit, or short-term funding.

If you know your desired repayment terms, you can list them as well. (Refer to the lender’s term sheet, if available.)

Personal information

In addition to the company’s information, you’ll need to provide information for the owner or sole proprietor. This often includes:

• Government-issued ID, such as a driver’s license or passport.
• Social Security Number, to help in the credit check process.
• Personal address and contact phone number.
• Ownership percentage, which can be found in the operating agreement or company bylaws.
• Personal finance statement, or a summary of your personal assets, liabilities, income, and expenses, is found within your personal finance software or bookkeeping tools.

Business financial statements

These essential financial statements show the bank how you’re doing and your prospects for the future. You can usually find them in your accounting software or request them from your accountant.

• Profit & Loss Statement: Covering the last 1-2 years, this should show revenue, expenses, and net income over a period.
• Balance sheet: This rundown of assets, liabilities, and equity is a snapshot of a certain date and
• Cash Flow Statement: It reports the money flowing in and out of your business during a set time.
• Year-to-date financials: The most current financial data for the ongoing year, plan to run this right before you apply.

Tax returns

Include both a set of your business and personal tax returns, which you can get from your accountant or tax preparer.

• For business: Show the last 2 years, including any forms that show income, expenses, and liabilities.
• For personal: Show at least a year for each of the major owners or partners.

Don't have tax returns for your business available? Read our guide to no-doc business loans for business loan options without tax returns!

Bank statements

Provide three to six months of bank statements for all accounts tied to your business. Small proprietors or very small businesses should have personal bank statements available, as well.

Business plan

Startups and those applying for SBA loans should be prepared with a business plan, which contains, at a minimum, the following sections:

• Executive summary: This short overview states your business purpose, goals, and the plan for the loan request.
• Business model and revenue strategy: Describe how your business makes money and uniquely serves customers.
• Competitive analysis: This gives an overview of competitors with similar offerings and how you’ll compete against them in the marketplace.
• Financial projections: A forecast of future revenue, costs, and profits, it’s usually created for the next three to five years and can be prepared with your accountant.
• Use of funds breakdown: This detailed list shows how the loan money will be spent, dollar by dollar.

Debt schedule

Most businesses owe at least some money on credit cards or with previous loans. These documents demonstrate this, so lenders know what type of risk they will be taking. Include all current business debts, including current loans and credit lines, the lender names, balances, monthly or quarterly payment amounts, and due dates.

Additional documents (depending on loan type)

Different loans have varying requirements. Consider having this paperwork available just in case:

• Accounts receivable aging reports: These detail unpaid customer invoices by date and can be found within your accounting software.
• Commercial lease agreement: If you rent space, you’ll need to provide a signed lease from your landlord to establish your business’s right to operate at your location.
• Equipment invoices or quotes: Requests for equipment financing require these, which you can get from your equipment seller or dealer.
• Articles of incorporation or partnership agreements: These legal documents establish your company or partnership and show the ownership structure. Request them from your state filing authority or your business legal professional.

Special considerations for SBA Loan requirements

SBA loan amounts can be higher, so the application process is often more document-intensive. Be prepared to show a higher level of detail with thorough financial disclosures than what you may need for smaller loans through private lenders.

There’s no standard SBA checklist, since lenders administer the loans in their own way, but expect to provide standard information on certain SBA-specific forms, such as Form 1919 (Borrower Information Only) and Form 413 (Personal Financial Statement).

Personal and business credit scores can carry more weight than with other lending programs, so take the time to check your score before you apply and resolve any outstanding issues that could hold you back from an approval. Also, SBA loan requirements often include a business plan. You can read up on how to create one in our step-by-step business plan guide.

Tips to streamline the application process

Since you’ll be asked to provide your most updated copies of each document, it may be helpful to digitize (scan or download from each website) before applying. This way, you don’t have to rummage through paper stacks and can quickly send documents to the lender via their secure online processes. Also:

• Store your documents in a secure cloud folder with two-factor authentication (2FA) so only you can access it.
• Update your documents and financial calculations each month to keep them accurate and available.
• Work with your accountant or CPA to validate numbers before sending to a lender.
• Check your credit reports well in advance of applying, so you have time to dispute or fix any errors.

Set yourself up for success

A business loan opens the door for expansion and new opportunities, and – in some cases – it may be just what you need to stay afloat in uncertain times. No matter what you intend to use the money for, loan approval depends on not just what you ask for, but how well-prepared you are to ask for it. Referring to this checklist early and often can reduce the number of surprises that arise during the application process and can keep your loan request moving as quickly as possible through what can be weeks or even months of qualification.

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An SBA loan may be just what you need to level up your business and stay competitive. While having a strong credit score improves your chances of qualifying and getting better loan terms, some lenders allow flexibility. It’s possible to get approved even with bad credit in some cases.

However, understanding SBA loan requirements can greatly improve your chances of hearing “yes” from a lender and can cut down on application time. This article covers the different loan types, minimum requirements, and steps you can take to improve eligibility, even if your credit is less than ideal.

Can you get an SBA loan with bad credit?

It’s true that a better score often leads to better credit terms, but approval can also depend on these factors:

• The specific loan program or type of loan you’re applying for
• The lender’s internal lending rules and policies
• Business characteristics such as your time in business, demonstrated success, and cash flow
• Whether you can put up large amounts of collateral
• Your specific credit issues (amounts owed, late payments, bankruptcies, etc.)
  

Because multiple factors play into how a lender assesses risk, there’s not a one-size-fits-all list of things to aim for. A business that’s lacking in creditworthiness may make up for it with a proven business plan and valuable collateral to secure the loan. Lenders look at the full picture, not just a credit score.

Best SBA loan programs for borrowers with bad credit

If your business got off to a rocky start or you’ve made some missteps in the past, you’re not shut out of financing. In fact, lenders report that a business’s overall financial position is the main thing they look at, not credit history.  

Because the individual lenders (banks, neobanks, credit unions) set additional requirements, on top of general SBA loan requirements, for their institutions, you may do best by shopping around. Here are the general loan options available to help you get started.

SBA Microloan Program

This SBA loan program focuses on underserved communities and startups, which often face unique challenges in starting and keeping a business going. The minimum credit score for these loans is typically around 620. (Although, because lenders each set their own internal guidelines, this can vary slightly.)

The maximum amount businesses can borrow through the program is $50,000, making this a better option for improvements, working capital, supplies, or equipment. The loan funds cannot be used for paying off debt or purchasing real estate, and average around $13,000 per loan. Plan to demonstrate creditworthiness with a strong business plan and a willingness to work with a technical assistance partner to improve your chances of approval.

SBA 7(a) Loan

This loan is admittedly a bit more difficult for those with bad credit to access. If you can show business strength, your chances improve. Things lenders may use to offset a low credit score include:

• Strong collateral (property, equipment) that can be used to secure the value of the loan
• Solid business cash flow
• Demonstrated history of being successful in your business for multiple years
  

Established businesses may achieve better results than startups and those without a proven track record of profitability.

Key requirements to offset poor credit

The saying, “credit isn’t everything,” may be true when it comes to SBA loans, as long as you can show lenders your other business strengths. Any or all of the following can work in your favor and help a lender overcome objections to past late payments, bankruptcies, and defaults.

• Time in business, especially if longer than two years
• Consistent revenue, increasing month over month
• A positive cash flow, with few if any annual losses
• A well-prepared business plan that shows your goals, details for improving profits, and plans for expansion (if applicable)
• A detailed explanation of how you’ll use the funds and pay the loan back over time
• Collateral, such as property, or personal guarantees of how you will cover the value of the loan in the event of an unforeseen business decline
  

Lenders generally don’t want to see recent bankruptcies, tax liens, or defaults on federal loans. If you have these on your credit report from years ago, be prepared to show evidence of how you’ve overcome or changed course.

Tips to improve your SBA loan chances with bad credit

Your credit score is a constantly changing metric that can show a bank you’re responsible enough to take on new credit. Because it changes often, there are steps you can take to improve it for the near future, possibly in time for your next SBA loan application.

Actions to take include:

• Pay off existing debts, or pay down as much as you can in the short-term
• Check your business and personal credit reports, correcting any errors you find
• Build your business credit, which can be used if your personal credit is weak
• Partner with a business advisor or community lender, who may be more open to businesses in your situation
• Start with a small loan (such as a microloan) and borrow only what you need
• Consider short-term loans, which can be paid back quickly to build business credit
  

Alternative paths if SBA loans aren’t an option yet

If, despite your efforts, you’re still not in a position to qualify for an SBA loan, you may still have choices.

Secured business credit cards require you to put down a cash deposit or collateral to access a line of credit, but they do offer credit benefits and liquidity you can use to grow your business.

Revenue-based financing and invoice financing agreements are like mini loans from the companies you get supplies and inventory from; they allow you to pay for your products in increments, instead of all at once.

Even small, short-term loans can build your repayment history and put you on track for a better credit score. This newer score may put you in the driver’s seat for a better, bigger SBA loan down the road.  

Credit isn’t everything

Can you access a business loan with poor credit? In some cases, yes! But being informed is part of the hard work needed to be sure you get the best terms possible. Come prepared with all the documents and a proper strategy for how you’ll use the money.

While you may not get approved for the full amount of your loan request, 28% of small businesses still get partial funding. Finding a lender that frequently services businesses like yours can greatly improve your chances. Ready to get started? Let Lendio help you with this first step of the journey.

SBA loans don’t have official credit score requirements. But to obtain financing for your business, you’ll typically need a minimum credit score—it just might be set by the individual lender.

The SBA has also recently changed its funding requirements, so new borrowers should know what lenders expect before applying. That said, these are the typical credit-based criteria for different SBA loans, the importance of credit, and tips to improve your credit profile as a small business owner.

Why credit scores matter for SBA loans

SBA loans are business loans partially backed by the U.S. Small Business Administration. Some, like SBA 7(a) loans, are guaranteed between 50% and 90%. Even with this partial government guarantee, lenders still evaluate risk carefully.

Checking a borrower’s credit score and history is part of the standard underwriting process. A higher score generally means the individual is more likely to pay back what they owe. The better the credit, the lower the risk to the lender.

Lenders may check the borrower’s personal credit score when determining whether to offer financing. A FICO credit score of 670 or above is generally considered “good” credit.

Be aware that business credit, which is often used for larger or mature businesses, may also be used to evaluate your application. As of July 2025, the minimum FICO Small Business Scoring Service (SBSS) score for some SBA loans is 165. This is up from 155.

Minimum credit score requirements by SBA loan type (2025 estimates)

There are multiple types of financing available for your business, from the popular SBA 7(a) loan to Disaster loans. Credit score requirements for these loans depend on the lender and loan type, but these are the typical minimums.

SBA 7(a) Loan

SBA 7(a) loans offer small business owners a way to finance things like commercial real estate, furniture, and machinery. Funds can also be used to refinance business-related debt or as working capital.

Several types of SBA 7(a) loans exist, including:

• Standard 7(a) loans—these range from $350,001 to $5 million and have a 75% SBA guarantee
• 7(a) small loans—these cap out at $350,000 and have between a 75% and 85% guarantee, depending on the financed amount
• SBA Express loans—eligible business owners may take out up to $500,000 with a 50% guarantee

Other 7(a) loan programs include the Export Express Loan program, Export Working Capital Program, CAPLines program (a business line of credit), and the International Trade Loan program. Maximum amounts, percentage guarantees, and collateral requirements vary.

Typically, borrowers must have a minimum personal credit score of 650 to qualify for an SBA loan. The minimum SBSS score is 165.

SBA loans are more flexible with strong financials—that is, the ability to demonstrate steady, high business cash flow. Having collateral may also help offset a lower credit score.

SBA 504 Loan

An SBA 504 loan is one that’s jointly funded by a Certified Development Company (CDC) and a traditional lender. They cap out at $5.5 million, with some exceptions.

These loans are similar to the 7(a) program, but can be stricter if real estate is involved. Funds can only be used for specific purposes, such as purchasing land or new facilities.

In exchange for funds, the lender will place a first lien on the real estate property, while the SBA places a second lien on it. Sometimes, collateral is also required. Again, there are no preset credit score requirements, so shoot to have a score of 650 or above.

SBA Microloan

SBA microloans come in smaller amounts up to $50,000. They’re flexible in that business owners can use them for things like working capital, furniture, equipment, machinery, and inventory or supplies. However, they can’t be used for real estate or debt repayment.

It’s possible to get a microloan through a qualified nonprofit, community-based organization. Borrowers may qualify with a strong business plan, solid financials, mentoring, and a lower credit score of around 620.

Economic Injury Disaster Loans

The SBA’s disaster loans are geared toward small businesses that have suffered economic damages due to a declared disaster. Minimums vary but cap out at $2 million (when combined with a physical disaster loan). Exact amounts are based on the business’s financial needs in relation to the disaster.

While disaster loans have no specific credit score requirement, lenders may consider the borrower’s financials and overall credit. Collateral is required for loans exceeding $50,000.

What lenders look for — beyond the score

SBA loan requirements, including business loan credit score, can vary by lender. This is true even of SBA-backed programs.

Since every SBA loan program has its own criteria, it’s important to do your research. It also helps to have a strong overall financial and credit profile before applying.

Beyond that, these are some things lenders often look for besides your credit score:

• Overall credit profile, including payment history, credit utilization, and length of credit history
• Recent delinquencies or bankruptcies on your credit report
• Overall financial health of your business (including cash flow and debts)
• Solid business plan and clear financial statements
• Owner’s invested equity in the business
• Collateral (such as business real estate)

Having a down payment could also help you qualify. Know that SBA loans generally have lower down payment requirements than other forms of business financing.

Applying for a larger loan may also require a larger down payment, stronger financials, or higher credit score. It all depends on the lender and program.

How to improve your credit score before applying

With SBA loans, credit score matters. If yours needs some work, here are some tips to improve your credit score.

• Check your personal and business credit reports—and dispute any errors bringing down your score
• Pay down outstanding balances—personal and business
• Avoid new credit inquiries before applying—a hard inquiry can cause your score to drop by up to five points
• Work with a credit advisor if needed

Try to wait until your credit score reaches at least 650 before applying for an SBA loan. This will increase your approval odds—but remember, some lenders will still work with borrowers with a lower score.

Can you still qualify with a low credit score?

It’s possible to get a business loan even with a lower credit score. SBA lenders may work with borrowers who have:

• Strong cash flow (boost your business revenue!)
• Valuable collateral or a large down payment
• Been in business for several years or more
• A co-signer or guarantor
• Significant business equity

If you don’t qualify, consider an alternative SBA lender or microloan instead.

Credit is a key part of the equation

When it comes to getting an SBA loan, your credit score is important. But it’s not the only factor. Having a business with strong financials, proven longevity, and a solid plan could help you qualify for financing.

Review your business (and personal) financials and credit holistically. Taking the time to prepare can boost your approval odds and maximize your overall success.

Ready to get started? Apply now with Lendio and get funded in as little as 24 hours.

Getting approved for an SBA loan is a big step and a huge relief for many small business owners. But approval doesn’t mean funds in hand. This guide breaks down what happens next, so you can stay ahead of the process and avoid delays.

If your SBA loan was just approved, take a moment to celebrate. You’ve passed the biggest hurdle in the process! But before those funds land in your account, you’ll need to complete one more important stage. SBA loan closing.

This stage is often misunderstood, especially by first-time borrowers. That’s why we believe it’s essential to provide small business owners with a clear understanding of what comes next.

So, in this guide, we’ll walk you through what happens after approval, what documents you'll need, and how long closing typically takes, so you can stay ahead and put your capital to work without delay.

Why SBA loans take time to close

SBA loans take longer to close than traditional loans because there’s more red tape. Since they’re partially backed by the government, lenders have to check every box (collateral, permits, compliance paperwork, etc.) before the funds are released.

Borrowers can support this process by staying proactive and organized, for example, by responding promptly and keeping documents up to date. This goes a long way towards avoiding unnecessary delays and keeps closing on track.

Please read our guide on what an SBA loan is to better understand how they work and why the closing process is more involved.

What happens after SBA loan approval?

After your SBA loan is approved, your lender will send over a Loan Commitment Letter. This lays out what needs to happen before closing can move forward, and usually covers:

• How much you’re approved to borrow, and at what rate
• The repayment plan you’ve agreed to
• Any collateral you’ll need to provide
• Additional requirements (e.g., insurance, permits, or licenses) that must be in place before funding

It’s worth going through this letter carefully. If anything looks off or unclear, ask your lender now rather than later. A quick conversation upfront can save you time and frustration down the line.

If you want to get a head start on your prep, read our guide on how business loans and taxes work to make sure you’re set up for tax season.

Key steps in the SBA loan closing process

The SBA closing process is pretty straightforward once you know what’s coming. While the exact steps vary depending on your loan and business, most borrowers go through a similar checklist:

1. Document collection and verification

Lenders often ask for fresh copies of key paperwork, even if you already submitted them earlier. This is because they need to confirm that your business still matches the terms of your approved loan.

In light of that, expect to resend things like:

• Personal and business financial statements
• Business licenses, permits, and insurance certificates
• Proof of business structure (such as Articles of Incorporation or an LLC Operating Agreement)
• Lease agreements or property-related documents (if real estate is part of the loan)

If anything is outdated or missing, your lender may pause the process. So, gathering these items in advance helps keep things on track.

2. SBA-specific documentation

After reviewing your paperwork, your lender will move on to the final SBA forms:

SBA loan authorization: This spells out the terms, things like the loan amount, interest rate, repayment schedule, collateral, and any extra conditions attached.

Proof of flood insurance (if applicable): If your loan involves real estate in a designated flood zone, flood insurance must be in place before closing. The policy must meet federal standards and name your lender (or the SBA) as the loss payee.

Environmental due diligence: If the loan includes commercial real estate (especially properties with past or current uses that may pose environmental risks), your lender may require a Phase I Environmental Site Assessment to identify any concerns.

Certification of use of proceeds (SBA form 1050): This form is required for all 7(a) loan disbursements. You and your lender must complete it at closing to confirm how funds will be used, consistent with the loan authorization. Supporting documentation (like invoices or wire confirmations) may also be required.

Other SBA forms and certifications: Depending on your loan type and business situation, you may be asked to complete additional documents, such as:

• SBA Form 159 (if you paid a broker or agent)
• IRS Form 4506-C (to verify business tax returns)
• Hazard insurance documentation (for collateral)
• Borrower certifications confirming no material changes since loan approval.

3. Legal and compliance requirements

Once the SBA-specific paperwork is out of the way, your lender will move on to the legal checks to confirm that your business is on solid legal ground and that everything meets SBA program rules.

You may be asked to:

• Sign legal documents that reflect the final loan terms
• Show that you’ve invested some of your own money into the business
• Provide proof that your location complies with zoning laws or environmental rules
• Back the loan with a personal guarantee or collateral

These steps are all about protecting both you and your lender while keeping everything above board.

Since SBA loans often require personal guarantees or assets as collateral, it’s worth understanding what happens if you default on an SBA loan and how to protect yourself.

4. Lender due diligence and final review

Right before closing, your lender will go over the details one last time to make sure everything lines up before funds are released. That could mean:

• Taking a second look at the title report, especially if real estate is involved
• Making sure all the collateral paperwork is in the file
• Following up with any lingering questions from underwriting

It’s routine, but important because it’s how lenders protect both sides before the loan goes live.

5. Signing the closing documents

This is the part where everything becomes official. You’ll go over the final loan agreement and sign documents like the promissory note, personal guarantee, and security agreement.

However, if real estate is part of your loan, there’s usually extra paperwork involved, like a deed of trust or lien filings. Some of those documents may need to be notarized. But don't worry, your lender will tell you what’s needed and when. These days, many lenders offer digital signing options to make things easier

6. Disbursement of funds

After you’ve signed all the paperwork and your lender has done a final review, the funds can be released.

How that happens depends on your loan and what it’s being used for:

Lump sum: For some loans, such as those primarily for working capital or refinancing existing debt, the full loan amount may be disbursed all at once directly into your business bank account.

In stages (draws): For projects involving construction, major renovations, or phased equipment purchases, funds are typically released in stages. This "draw" process allows the lender to monitor project progress and verify that funds are used appropriately at each phase.

Direct to third parties: Sometimes, the funds don’t go straight into your account. Depending on your loan terms, the lender might send the money directly to vendors like equipment suppliers or business sellers, or place it in an escrow account managed by a title company. This helps make sure the money gets used exactly as approved.

The typical timeline for fund disbursement is generally within 7–21 business days after the loan closing documents are signed. While some lenders, particularly those with highly streamlined or digital processes, may be able to release funds faster, it's prudent to anticipate this timeframe.

Get ready to put your capital to work

Once you close, the hard part is behind you. Now it’s time to focus on growth. It doesn't matter whether you’re purchasing new equipment, expanding to a second location, or managing seasonal cash flow; your loan is likely the key to moving your business forward.

Interested in a SBA loan? Lendio stays in your corner every step of the way, offering tools, expert guidance, and support when it matters most. If you're planning your next big move, our team is ready to help you make it happen. Start your SBA loan application today.

Update: BayFirst announced they would be discontinuing the Bolt loan program on August 4, 2025. Read on for alternatives to the program.

You can’t always anticipate your business needs. So, when a new opportunity arises, and you need funding fast, it’s good to know all of your available options. One popular option was until recently the SBA Bolt loan. It offered flexible business financing in a more streamlined way than what you may expect from SBA funding. These loans were built for speed and could be your fast-track option for small business financing when minutes really matter.

What is an SBA Bolt loan?

The SBA Bolt was a type of SBA 7(a) loan that limited borrowers to no more than $150,000 but had fewer business loan requirements to meet when applying. It had a faster approval process, too, so was ideal for those in a crunch to get funding for a time-sensitive need.

The Bolt loan was an offering issued by CreditBench, the small-business lending division of BayFirst. However, on August 4, 2025, BayFirst announced that they would be discontinuing the Bolt loan program.

Was the Bolt loan an SBA loan?

Yes and no. The SBA loan program doesn’t offer an official Bolt loan program. Instead, the “Bolt” loan designation was created by BayFirst Financial to market its expedited small-dollar SBA 7(a) loans. So, the Bolt loan was an SBA 7(a) loan, but the name for this segment of small-dollar loans was created by BayFirst.

Key features of the SBA Bolt loan for small businesses

SBA Bolt loans weren’t the only fast, small business loans on the market, but they did stand out for a few reasons.

1. Loan amounts were significant enough to make a difference in a business, but not so large that they needed extensive documentation or collateral.
2. Processing time was just days, so businesses received funding much faster than the weeks or even months of traditional business loans.
3. The streamlined application process required much less paperwork. Most businesses would have the documentation they need on hand (or could access it quickly).
4. The shorter 10-year repayment period helped businesses plan for the near future and not worry about being saddled with decades of additional debt.
5. Competitive interest rates made the SBA Bolt loans a more stable option compared to “fast cash” alternatives.

Application requirements at a glance

While the SBA Bolt loans may have been quicker to get, they still had minimum requirements to meet. These loans were for legitimate, proven businesses that could demonstrate creditworthiness.

Businesses had to:

• Be in an approved industry for SBA loans (no life insurance, lobbying, or primarily gambling businesses, among others)
• Be U.S.-based
• Meet the SBA’s standards for “small”
• Operate for profit
• Have 2 years of demonstrated operations (some small startups may also qualify)
• Show proof of revenue and ability to repay
• Be unable to get financing on reasonable terms from other sources

Alternatives to SBA Bolt Loan

Now that the Bolt loan program has been discontinued, you might be wondering what your other options are. Here’s a comparison of the SBA Bolt Loan against other small-dollar SBA loan programs.

SBA Bolt Loan vs. SBA Express Loan

Closest in speed and simplicity to the SBA bolt loan would be the SBA Express loan, a small-dollar SBA loan meant to eliminate excessive paperwork and decisioning. Of other SBA loan program offerings, the SBA Express loan reduces the number of forms and procedures required, and allows lenders to use more of their own loan analysis, procedures and documentation than other SBA loans.

SBA Bolt loans vs. other small business loan options

SBA Bolt loans were fast, flexible, and available to businesses that may have been shut out of other financing opportunities. Now that they have been discontinued, take a look at some other options available. Here’s how they compared to common business funding programs used by companies today:

• Traditional SBA 7(a) loans: Offer much larger amounts (up to $5 million) and broader use cases, but the approval and funding take much longer (weeks or more). Paperwork and documentation needs can be extensive.
• Term loans: Offer a lump sum that’s repaid over a set period, usually with a customizable term, and for larger amounts. Approval process can take longer, require physical collateral, and may not be guaranteed by the SBA or partner banks.
• Lines of credit: Offer flexible funding to borrow from again and again, instead of the single, one-time lump payout of a Bolt loan. Comes with a higher interest rate in most cases and can be harder for the average small business to qualify for. ‍
• Revenue-based financing: Provides upfront cash that is rapidly repaid through a percentage of daily sales. Comes with a higher interest rate and lacks a fixed repayment structure that helps businesses budget better.

Many SBA loan portals let you shop around to see what rates, terms, and limits you qualify for. Don’t be afraid to ask questions about these various lender offers so you know how the loan process will look and to ensure you get the best service – and deal!

Lendio makes a great first step in the process, showing you the loans you’re likely to qualify for, rates available, and the loan terms you can expect before you fill out all the paperwork.

Running a business means constantly juggling priorities, and cash flow is always at the center of the equation. Whether it’s making payroll, covering vendor invoices, or seizing a new growth opportunity, your ability to see what’s coming (and act quickly) makes all the difference.

That’s where QuickBooks comes in. With the suite of QuickBooks Money tools, business owners can accept payments, pay bills, and access capital all in one place. This gives small business owners a real-time view of money in and money out. You can track every transaction, automate key workflows, and spot cash flow trends before they become problems.

Tracking what matters: Money in, money out, and what’s next

Managing cash flow isn’t just about tracking dollars. At its core, it comes down to three components:

• Money coming in (revenue, payments received)
• Money going out (expenses, bills, payroll)
• Timing (when those inflows and outflows hit your accounts)

It’s not enough to know how much money you made last month. You need to know if your upcoming bills will outpace your receivables. That’s where many small businesses get stuck: juggling different systems, manual spreadsheets, and late payment surprises.

The QuickBooks Money portfolio simplifies this. It brings together tools to support processing money coming in, money going out, and funding opportunities to help you fill gaps and fund growth with flexible financing.

By centralizing the tools that drive cash in and cash out, QuickBooks gives you a living, breathing picture of your cash position and helps you automate cash flow forecasts, so you have financial clarity, and you can plan for what’s ahead.

QuickBooks Capital: Funding that fits your flow

Traditional business loans take time—often weeks—and demand piles of paperwork: income statements, balance sheets, cash flow projections, bank records, and more. And even after all of that, approval isn’t guaranteed.

• Apply directly through QuickBooks. No need to visit another portal and start from scratch with paperwork.
• Get a decision in as little as 30 seconds, instead of waiting 30 days.
• Access a Term Loan or Line of Credit, and get quick funding when you need it.
• Repay on predictable, fixed terms, with no origination fees.
• Receive funds in 1-2 business days², so you can move quickly and confidently.

Whether you’re bridging a short-term cash flow dip or making a bold move to grow, QuickBooks Capital enables you to make fast, confident decisions without slowing down your business.

Plan ahead with confidence

When your finances live in QuickBooks, you don’t just see where you’ve been. You can spot what’s coming. With built-in forecasting tools and real-time insights into cash flow, you can identify slowdowns before they impact your business, and act fast to stay ahead.

• Smooth over slow months without skipping a beat
• Purchase inventory ahead of demand, so you’re always stocked and ready
• Hire or scale at the right moment, not just when cash allows

Your financial data isn’t just for reporting, it’s a launchpad for your next move—whether that’s staying steady or stepping into something bigger.

The bottom line

Cash flow clarity is powerful—but when you combine that with fast, flexible capital access, your business has the tools it needs to succeed. With QuickBooks Capital, you can move quickly, invest wisely, and grow on your terms, without jumping through hoops.

SBA loans are one of the most popular ways for small business owners to secure affordable financing. Features like low interest rates and extended SBA loan repayment terms make funding more accessible, but they also create high demand, so competition for loan approval can be steep.

The loan application requires careful attention to detail. Accuracy is critical, and you’ll need to follow a clear set of steps. Otherwise, a single mistake could derail the process, costing you time and potentially leading to a loan denial.

Understanding exactly how to get an SBA loan approved and the top application mistakes to avoid could be the difference between securing the funds you need and starting over from scratch. Here’s what you need to know.

SBA loan applications require extra attention.

The SBA loan application process is more detailed than many expect. SBA financing has stricter requirements, leading to more paperwork and additional layers of review.

It’s important to note that the SBA does not issue loans directly. Instead, it partners with approved banks, credit unions, and online lenders that follow SBA guidelines for evaluating and processing applications.

The process typically starts with gathering financial documents, completing SBA-specific forms, and outlining a clear plan for how you’ll use the funds. Then, the lenders are required to verify every detail of your application and make sure your business is a solid credit risk. To pass this examination, it’s important to submit a complete, accurate, and well-documented application.

Common SBA loan application mistakes to avoid.

Even businesses with solid backgrounds and strong credit profiles can sometimes get tripped up during the SBA loan application process. Here’s a look at some of the most common mistakes business owners make, and how to avoid them.

Incomplete or disorganized documentation.

Lenders need a full picture of your business before they can approve your loan, so you’ll need to provide every requested piece of documentation. This includes:

• SBA Form 1919
• Recent tax returns
• Financial statements
• Your business plan
• A clear breakdown of how you’ll use the funds

Failing to provide these items can slow down your approval and could stop it altogether. Avoid this common mistake by creating a checklist and reviewing everything with a trusted advisor before hitting submit.

Underestimating the importance of credit.

When you’re applying for a business loan, your personal credit doesn’t matter—right? Actually, when you’re dealing with SBA loans, that’s not the case. Your personal credit history helps lenders evaluate risk, so that’s typically one of the first things they’ll look at. Make sure you’re prepared by reviewing your most recent credit report well ahead of time. This can help you identify errors or other issues that need to be addressed before you apply.

Overstating financial projections or revenue.

It’s tempting to present big growth numbers, especially when you’re excited about the direction your business is headed. But if your projections aren’t based on verifiable data or market trends, they can raise red flags. Lenders want to see realistic, well-supported forecasts, so be honest about your revenue. Back up your projections by explaining your assumptions and showing that while your goals are ambitious, they’re also grounded in reality.

Lack of clear loan purpose.

SBA lenders want to know exactly where the money is going and how it will help your business grow or stabilize, so vague or inconsistent explanations for how you’ll use the funds could raise more red flags.

The more specific your answers, the better. Whether you’re planning to use the funds for payroll, equipment, or working capital, make sure you can show that each dollar is tied to a clear business goal. This shows that you’ve given it plenty of thought and will use the money to make smart business moves.

Ignoring debt-to-income or debt-service coverage ratios.

Make sure you’re realistic about how much debt your business can afford to repay. Before approving a loan, SBA lenders look closely at your debt-to-income (DTI) and debt-service coverage ratio (DSCR). These calculations help assess your ability to handle an additional loan. If the numbers don’t make sense, they may deny your application, even if everything else checks out.

Before submitting your SBA loan application, carefully run the numbers and make sure the amount you’re requesting aligns with what your business can reasonably support.

Not understanding the SBA loan type you’re applying for.

Applying for the wrong type of SBA loan can delay your application or lead to a mismatch in funding. For example, an SBA 7(a) loan may work well for general business needs, while a 504 loan is better suited for purchasing real estate or equipment. And if your business is fairly new and you meet the requirements, you may benefit from applying for an SBA Microloan instead.  

To avoid this mistake, take the time to research your options or meet with a loan advisor who can help you choose the program that best fits your business goals.

Skipping the business plan (or submitting a weak one).

A strong business plan shows lenders where your business is headed and how you’ll get there. Generic, outdated, or incomplete plans can lead lenders to believe you haven’t fully thought through your strategy or aren’t committed to the long-term success of your business.

Creating a robust business plan is well worth the time and effort it requires. Make sure your plan includes your current financials, clear growth strategies, and a thorough competitive analysis. Demonstrating that your business plan aligns with the loan request helps lenders see that you’re thinking strategically and ready to use the funds with purpose.

Strengthen your SBA loan application.

Once you’ve sidestepped the most common SBA application mistakes, there are a few additional things you can do to make sure your submission is as strong and lender-ready as possible. Taking these steps can help speed up the process and may boost your chances of approval:

• Stay organized: Keep all of your paperwork in a digital folder so it’s easy to access and update
• Work with a professional: An accountant or small business advisor may help spot missteps before you submit
• Be transparent: Most challenges will come up during the review process anyway, so it’s better to be upfront. Let lenders know what you’ve overcome and how your business is stronger because of it
• Double check everything: Review the SBA’s official borrower checklist and lender guidelines before submitting your application

A complete, well-prepared application shows lenders you’re serious, and may make it easier for them to say yes.

Use the SBA application process to strengthen your business.

SBA loan application mistakes are fairly common. Even experienced business owners can miss a step, but with the right preparation, most errors are avoidable.

The application process is about more than completing paperwork. It’s an opportunity to polish your business plan, get a clear picture of your financials, and build confidence in exactly what you’ll do with the funds. Not only will this level of clarity help improve your chances of approval, but it can also help you run a more successful business.

Take the next step toward reaching your business goals. Explore SBA loan options with Lendio and check your eligibility today.  

The words “flexible” and “financing” don’t seem like they should be in a sentence together. When you think of financing, you may think of a stuffy banker stamping rejections on loan applications. Maybe you think about how your business is stalled in growth because you’ve reached the end of your credit line. It is not often that you think about financing options that are flexible to your needs. They do exist, however. Here are some flexible financing options for your small business.

Does your financing plan account for unexpected losses?

As we have all seen, life is unpredictable. Your business could be performing well, but then revenue may drop off a cliff for outside reasons. Here is where that flexibility will come in handy. The COVID-19 pandemic was terrible for small businesses, and it also shed light on some huge holes in small business finances. Many small business owners turn to personal funds to keep their businesses afloat because they lack cash reserves. If anything, the pandemic taught small business owners the importance of access to flexible financing and being prepared for unforeseen challenges.

Flexible financing options.

Many business owners found they were at risk of breaching their banking covenants with the sudden revenue loss. Some business owners were struggling to meet payroll. Others had to close altogether. To keep the lights on for your business, you either need a large cash reserve or flexibility in your financing. If you have maxed out a bank line of credit, do you have access to working capital from somewhere else? Is your bank willing to extend your credit limit?

Equipment financing

It is worth considering some supplemental financing options to round out your financing plan. Equipment financing is a great option that can unlock working capital to support your business growth. Equipment financing is a loan that you can use for specific reasons, like buying manufacturing gear or any other equipment you need for your business. If you are looking to upgrade your cybersecurity and tools because you have moved mostly remote, equipment financing can cover those costs. This type of financing will be a loan that probably has strict repayment terms, but you can use the money pretty flexibly for your business’s needs. 

Accounts receivable financing.

Accounts receivable financing can help you meet payroll while waiting to collect on your receivables. In simpler terms, the amount of capital you can access is based on the amount of capital you are waiting to collect from your customers. With accounts receivable financing, you can add to your team without the stress of adding to your overhead. Since it’s based on your outstanding invoices, it does not require a high credit score or lengthy time in business, which makes the approval requirements very flexible. This type of financing is similar to a line of credit, but the limit will not be as rigid. Typically, the higher your accounts receivable, the more capital you can access.

Line of credit.

A line of credit gives you some flexibility in drawing capital and repaying it. You don’t have to use all the money, and you only pay interest on the amount you use. Online lenders and traditional banks offer lines of credit, and it’s a great tool to have available if you want a more flexible financing plan.

Revenue-based financing

Revenue-based financing—also called a business cash advance— is basically a lump sum of cash that is repaid through daily or weekly withdrawals based on your future earnings. These are typically costly because the interest rates are high. Make sure you read your contract carefully before taking out a cash advance.

Which Flexible Funding Option Is Right for You?

Most of these financing options can work together to round out your financial plan. For example, you can use accounts receivable financing to cover your payroll and also take out an equipment loan to cover your production tools. You could use a cash advance alongside a line of credit. It is crucial to consider your business and your industry when signing up with a new lender. It’s best to choose a lender that knows your industry and can offer solutions to your unique financing challenges. Ultimately, your financing plan should include some flexibility to account for sudden gains or sudden losses.