Whether you’ve gone through a personal or business bankruptcy, lenders will consider past bankruptcies when making a loan decision. This post will cover common questions about bankruptcy and how it impacts your loan application.
Can you get a business loan after bankruptcy?
Yes, you can qualify for a business loan if you’ve had a bankruptcy. However, lenders will want to see that you’ve rebuilt your credit and will have varying waiting periods before you are eligible.
However, each platform will have rules about when you could have last had a bankruptcy, such as not within the last 24 months.
When can you qualify for a loan after bankruptcy?
Bankruptcy policy will vary by lender. Some will require waiting seven years when the bankruptcy will be removed from your credit report. Others will consider your application within two to three years after the bankruptcy is closed if you’ve rebuilt your credit score. Some lenders will disqualify you if you have had multiple bankruptcies.
Can you get an SBA loan after bankruptcy?
Yes, you can qualify for an SBA loan if you’ve had a previous bankruptcy. The policy will vary by lender but generally starts at no bankruptcies or foreclosures in the past three years with no more than two total bankruptcies.
Types of bankruptcy.
Chapter 7 bankruptcy
Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, involves the sale of a debtor's non-exempt assets by a trustee. The proceeds are used to pay off creditors. This type of bankruptcy is designed for individuals or businesses that don’t have the means to pay back their debts. For businesses, this usually means the end of operations. However, individuals might see it as a fresh start, albeit with a significant impact on their credit report for 10 years.
Chapter 11 bankruptcy
Chapter 11 bankruptcy is primarily for businesses, allowing them to continue operations while reorganizing their debts. It’s a complex process that involves negotiating with creditors to modify the terms of the debt without selling off assets. This form of bankruptcy can be expensive and time-consuming but offers businesses a chance to recover and eventually return to profitability.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is aimed at individuals with a regular income who want to pay their debts but are currently unable to do so. It involves a repayment plan lasting three to five years, allowing debtors to keep their property while making more manageable monthly payments towards their debt. The successful completion of the payment plan can lead to the remaining debts being discharged. Chapter 13 bankruptcy remains on an individual's credit report for seven years, offering a less severe impact compared to Chapter 7.
Waiting periods
Typically, a bankruptcy will remain on your credit report for at least 7 years. However, because the court filings are public, the fact that you declared bankruptcy would remain part of the public record if someone searches for it.
Steps to qualify for a loan post-bankruptcy.
Rebuild your credit.
Rebuilding your credit after bankruptcy is crucial for qualifying for a business loan. It may seem daunting, but it's possible with a strategic approach:
Start by regularly checking your credit report for inaccuracies. Dispute any errors that can negatively impact your score.
Consider obtaining a secured credit card. This requires a deposit acting as your credit limit.
Make small purchases with this card and pay off the balance in full each month. This shows lenders your responsible credit use.
Always make payments on time, keep your credit utilization low, and be patient. Credit rebuilding takes time, but consistent effort will gradually improve your creditworthiness.
Research lenders.
Find out which lenders will work with business owners with a prior bankruptcy and the thresholds you'll need to meet before you apply. If you apply through Lendio, we can help match you with lenders who will work with someone with your credit history.
Grow business income.
Lenders will also consider your business's current financial standing and future potential when evaluating your loan application. Focus on increasing revenue and building strong cash flow to demonstrate the ability to repay a loan.
Have you ever wondered why lenders pay such close attention to your credit score? It’s because they’re protecting their assets and want to determine whether they can trust you to consistently repay the money. If your credit score reflects a solid track record, you’ll get serious consideration. If you have major blemishes in your past, many lenders take defensive action.
Of course, we realize the life of an entrepreneur is full of risk. We’ve all collected our share of bumps and bruises along the way. So there’s no shame in a less-than-stellar credit score. And if you feel like your bad credit is keeping your business from achieving its potential, you’re not alone. However, don’t let one or two rejected loan applications keep you down. It is possible to get still business loans with bad credit.
Best business loans for bad credit.
The following list highlights lenders from our selection of best business loans that offer minimum credit requirements below 650 and have a lower minimum credit score requirement than their counterparts.
How a bad credit score impacts your business loan options.
Credit score requirements for business loans vary by lender and the type of loan. No credit requirements are the same, so you’ll always need to do your due diligence to find your best opportunities. This is especially true for bad credit loans online.
Traditional banks typically require good or excellent credit to qualify for a business loan. This means you should have a personal credit score of at least 670, although some banks will consider applicants with credit scores in the low 600s. If you’re applying for a long-term or SBA loan, banks may want to check your business credit score in addition to your personal credit score. In this case, you’ll want to have excellent business credit, as well—a Dun & Bradstreet score of 80 or above should suffice.
Where to find business loans for bad credit.
There’s still hope for business owners with bad credit. While big banks tend to offer the lowest interest rates, plenty of other affordable lenders out there offer bad credit loans online.
Service providers
As embedded financing unlocks new ways for business service providers and platforms to service their customers, financing options are now available in places you already frequent. From accounting software to e-commerce platforms, many tools you already use to run your business may offer access to capital directly within their interface—often with faster approvals and tailored options based on your business data.
Lending Marketplaces
Lending marketplaces have opened the door for a new range of business owners to access business loans. These marketplaces are home to a wide range of lenders and leverage technology to connect borrowers with a loan that suits their needs and credit profile.
Loans from these lending marketplaces have a much higher approval rate than those from traditional banks. They also tend to be much easier to apply for, and you’ll often receive funding very quickly. This makes them an ideal source of loans for people with bad credit.
Microloans
Microloans are exactly what they sound like—small loans. These loans are geared toward entrepreneurs and are, therefore, easier to qualify for than traditional loans.
No credit? That’s not necessarily going to be a roadblock. Your microloan will typically be fulfilled by several lenders pooling their money together, so each lender can spread their risk among many different small loans. This feature makes peer-to-peer lenders more willing to lend to people with bad credit. However, if you don’t have good credit, you will end up paying higher interest rates.
CDFIs
Community Development Financial Institutions (CDFIs) are non-profit or community-based financial institutions that offer loans to individuals and businesses in underserved communities. These institutions prioritize helping those who have historically been denied access to traditional financing options, which often includes business owners with bad credit.
CDFIs typically perform a more holistic evaluation of an applicant's creditworthiness, considering factors such as their character, community involvement, and potential for success. This approach to lending has made CDFIs a popular choice for business owners with bad credit.
Some examples of CDFIs include Accion and the Opportunity Fund. You can find more information about CDFIs through the CDFI Fund.
Types of loans for bad credit.
It’s important to know how to get a business loan if your credit isn’t in a great place. And there is a trio of financing products that often fit the bill perfectly. These loans for bad credit options are different from typical loans both in their structure and their low barrier to entry.
Let’s review each of the types of loans for bad credit and some of their unique attributes:
1. Business lines of credit
A business line of credit is a financing option that functions a lot like a credit card. To qualify, you’ll need to have a credit score of 600 or higher, have a business that’s been operating for at least six months, and make $50,000 or more a year.
2. Business cash advance
A business cash advance is a strong choice for business owners with bad credit because the financing eligibility is primarily based on the company’s revenue and other financials. The approval process is typically fast, so it’s also good for companies that need immediate access to capital. Lenders usually require daily payments that are automatically debited from your business account. In addition to the principal balance, you’ll also pay a factor rate. Your daily payments are usually calculated as a fixed percentage of that day’s sales, which can help you avoid overleveraging your business.
3. Invoice factoring
Lenders who offer invoice factoring focus on your business’ future earnings based on your current accounts receivables, so most lenders won’t look at your credit score. Some will have other minimum requirements, such as time in business and monthly revenue. Most lenders will also have limitations on the industries with which they will work, with some specializing in e-commerce and others focused solely on B2B or B2G brands.
4. Equipment financing
Equipment financing helps you finance specific purchases, whether it’s a piece of heavy machinery or software to help run your company more efficiently. In the case of equipment leasing, the purchased asset is used as collateral, which helps to widen eligibility requirements and keep interest rates lower than with many other options.
Most lenders have a one-year minimum time in business requirement, as well as a minimum annual revenue. A personal credit score is required, but minimums start in the 500’s.
Boosting your odds of qualifying for a business loan despite bad credit.
It's not just about finding the right lender—you also have to make yourself more appealing to them. Here are a few strategies to consider:
Improve your credit score - It’s easier said than done, but the most reliable way to make yourself attractive to lenders is by fixing your credit. Pay off outstanding debts, make sure you’re making all your current payments on time, and check your credit report for errors.
Offer collateral - If you can provide assets that the lender can seize in case you default on your loan, they may be more willing to work with you. These assets could be equipment, real estate, or other business properties.
Find a co-signer - If someone with a better credit score is willing to co-sign for your loan, that can greatly increase your chances of approval. However, remember that this person will be responsible for your loan if you can't make the payments.
Increase your cash flow - Lenders want to see that you'll be able to pay back the loan. If you can show that your business has a steady cash flow, you're more likely to secure the loan.
Build a strong business plan - As mentioned earlier, a solid business plan can go a long way. It shows that you're serious about your business, and it gives the lender confidence in your likelihood of success.
By following these steps, you can improve your chances of being approved for a business loan, even with bad credit. Remember, bad credit isn't a death sentence. It’s just a hurdle to overcome—and with the right approach, you can do it.
How to improve your credit score.
Improving your credit score takes time and effort, but it is worth it in the long run. Here are some steps you can take to improve your credit score:
Pay off outstanding debts - Focus on paying off any outstanding debts as soon as possible. This will not only improve your credit score, but also save you money in interest.
Make your payments on time - Late payments can significantly impact your credit score. Make sure you are making all of your payments on time, whether it's for a loan, credit card, or bill.
Monitor your credit report - Regularly check your credit report for any errors or discrepancies. If you find any, dispute them with the credit bureau to have them corrected.
Reduce your credit utilization - Your credit utilization ratio is the amount of available credit you're using. Aim to keep this below 30%, as it could positively impact your credit score.
Don't apply for too many new lines of credit - Each time you apply for a new loan or line of credit, it results in a hard inquiry on your credit report. Too many of these can negatively impact your score.
In conclusion, having a bad credit score isn't a dead end for business owners. There are several avenues available (Ex: lending marketplaces, microloans, and CDFIs) that are designed to help businesses with less-than-stellar credit histories. Compare small business loans from multiple lenders with a single application through Lendio.
SBA loans are crucial financial tools that come with distinct terms and lengths to meet various small business needs. Typically, these loans have more flexible duration options than traditional financing, ranging from short to long-term. This flexibility allows business owners to secure funding and meet the operational and expansion needs of their businesses, without damaging their long-term financial health.
Each SBA loan program has maximum loan maturities depending on the use of the proceeds, with flexibility for the maturity based on the borrower’s ability to repay. We’ll go over typical loan lengths below, as well as long-term vs. short-term options. We’ll also cover term details for each SBA loan program and their maximum maturity limits.
What is SBA loan maturity?
Like other loans, loan maturity refers to the date when your SBA loan term ends, and the principal balance plus any outstanding interest is due. In other words, it’s the final payment deadline for your loan.
Understanding SBA Loan lengths
SBA loans are designed with a range of maturities to accommodate diverse business needs and objectives. The typical loan duration depends on the type of SBA program.
These variable timelines allow business owners to choose a loan structure that best aligns with their capacity to repay and their strategic growth plans. Many SBA loan programs have loan terms of 10-25 years, while others are designed with shorter terms of 36 months to 5 years.
It’s important to note that simply because there is a maximum, it doesn’t mean you will get the longest term possible on your SBA loan. Lenders must state a maturity on the loan, which is the shortest appropriate term based on the use of proceeds, and your ability to repay. Although lenders determine the loan maturity, the loan length must comply with SBA rules around the specific loan program and use of funds.
Types of SBA loans and their lengths
There are three main SBA loan programs: the SBA 7(a) loan program, the SBA 504 loan program, and SBA microloans. Under each of these umbrellas, there are many different types of SBA loans, each with its own limits and rules around term length.
SBA 7(a) Loan terms
The SBA 7(a) loan program encompasses several types of loans, from the Standard 7(a) to CAPlines. Below, each loan type is broken out with term lengths.
SBA Standard 7(a) and 7(a) Small loan length
Standard 7(a) loans, and 7(a) Small loans have the same maturity rules around use of proceeds. In the chart below, you can see the maximum loan term length for both loans, based on what the loan proceeds are used for.
If standard 7(a) loans or 7(a) small loans are used for mixed purposes, i.e. land and building, working capital, and/or machinery and equipment, or refinancing any of these, the maturity can be a blended maturity. This means the lender can combine the maturities for each of the different uses to create a weighted average, or reasonable blended maturity.
However, if 51% or more of a mixed-use loan is used for real estate, the entire loan can have a maturity of 25 years.
Blended maturity also applies to all types of ownership changes, depending on what the business purchase entails.
SBA Express loan length
SBA Express loans, when structured as a term loan, have the same maturity rules as Standard 7(a) loans.
However, if an SBA Express loan is structured as a line of credit, either revolving or non-revolving, the maturity limit is 10 years.
If the line of credit is revolving, you can draw, repay, and re-borrow funds during the revolving period, which is 5 years maximum. After that, any outstanding balance is termed out to a non-revolving loan that must be repaid fully within 10 years.
If the line of credit is non-revolving, you can draw funds up to the limit, but can’t re-borrow the funds. The line of credit must be fully repaid within the 10-year limit.
SBA CAPLines and their loan lengths
CAPLines have set maturity for each type, but also come with rules to keep in mind when it comes to time needed to pay back the loan.
Seasonal CAPLines have a mandatory “clean-up” period each season. This means a 30-day period where the borrower must bring their balance to $0. This shows the business isn’t dependent on borrowed funds year-round—just during seasonal peaks. This is required for Seasonal CAPLines, but is optional for other types.
CAPLines also require an exit strategy. The final receipt of funds from the CAPLine must occur far enough in advance of the maturity date, so that any assets acquired with the loan can be converted back into cash to make the final payment on the loan by the maturity.
Export Express loan lengths
SBA Export Express loans have different lengths depending on the structure of the loan.
If the Export Express loan is structured as a line of credit, or a revolving loan, the maximum maturity is 7 years.
If the Export Express loan is structured as a term loan, it carries the same maturity rules as a Standard 7(a) loan.
Export Working Capital Program loan lengths
EWCP loans have a maximum loan term of 36 months, although loan terms are typically much shorter depending on the loan structure.
If the EWCP loan is a single transaction-specific loan, the term may be up to 36 months, but the lender will have to justify any maturity over 12 months with documentation to the SBA.
If a transaction-based line of credit is used, this EWCP loan typically doesn’t exceed 12 months, but can be approved up to 36 months with annual renewals.
Asset-Based (ABL) EWCP loans are typically issued for 12 months, and then renewed annually up to 36 months.
For both Transaction-Based Line of Credit and ABL loans, each renewal is treated as a new loan, and is subject to new SBA guarantee fees.
International Trade Finance loan lengths
Similar to Standard 7(a) loans, International Trade Finance (ITF) loans follow the same maturity limits based on use of the proceeds.
SBA 504 Loan terms
The SBA 504 loan program offers long-term, fixed-rate financing for major assets like real estate and equipment. Loan lengths are determined by the type of asset financed by the loan, with terms designed to match the useful life of the project. 10, 20, and 25-year debenture options are available.
Here are the maximum loan term lengths for 504 loans, depending on the project:
Third-party loans (a required loan from a private lender that is paired with the SBA portion) are required to have terms of at least 7 years for 10-year maturity loans, and 10 years for 20 to 25-year maturity loans. If multiple third-party loans are used, a weighted average maturity must be calculated.
SBA Microloan loan terms
When it comes to loan length for SBA microloans, things are a little simpler. Any SBA microloan issued has a maturity of 10 years from the note date.
Key Takeaways: What influences SBA loan length?
Ultimately, SBA loan terms are designed to match the asset’s expected economic life, and your ability to repay within the term limits., ensuring these small business loans are structured for both stability and sustainability.
SBA loans are a popular financing option for small businesses, offering affordable interest rates and flexible terms for entrepreneurs looking to start or expand their business.
However, like any loan, there are limits on how much money you can borrow through the SBA program. Let's dive into the details of maximum SBA loan amounts and what they mean for small business owners.
Understanding maximum SBA loan amounts.
The maximum SBA loan amount refers to the highest sum a borrower can receive through a specific SBA loan program. These limits are in place to ensure that the loans are used for their intended purpose—to help small businesses grow and succeed.
The SBA sets different maximum loan amounts for its loan programs, including the 7(a), 504, and microloan programs. Each of these programs is designed to meet unique funding needs of small businesses, and limits will vary based on each loan program's requirements. , which we'll explore in more detail below.
Why are loan limits important?
While it would be great to receive limitless financing when you apply for a loan, loan limits help small businesses achieve a balance between being underfinanced, so they can’t grow and expand their business, and over-financed with debts that exceed their ability to pay.
Loan limits, especially those set by the U.S. Small Business Administration, help you make informed decisions and maximize financing without harming your business in the long run.
Now that you understand more about what SBA loan limits are, let's take a look at the unique loan limits for each SBA loan program.
Maximum SBA (7a) loan amounts.
The most popular SBA loan program is the 7(a) loan program, which provides working capital for small businesses. Each loan type under the SBA 7(a) loan program umbrella has different maximum amounts. They are listed in the chart below, along with the maximum amount of the loan the SBA guarantees.
Small Business Administration (SBA) loans are a popular financing option for small businesses. These loans offer affordable interest rates and flexible terms, making them an attractive choice for entrepreneurs looking to start or expand their business. However, like any loan, there are limits on how much money you can borrow through the SBA program.
Let's dive into the details of maximum SBA loan amounts and what they mean for small business owners.
Maximum SBA 504 loan amount.
The SBA 504 loan program is specifically designed to support small businesses in acquiring major fixed assets, such as real estate or equipment. Because the 504 loan is structured differently than 7(a) loan programs, the limit for the loan amount is not intended to cover all project costs.
With 504 loans, there are three parties to the loan structure. Usually:
- 50% bank/lender financing
- 40% CDC/ SBA-backed debenture
- 10% borrower contribution (this could be more depending on the project and some business characteristics).
With that in mind, here are the maximum loan limits the SBA will provide for 504 loans.
The minimum loan amount for a 504 loan is $25,000.
Maximum SBA microloan amount.
The SBA offers a microloan program designed specifically to aid small businesses and non-profit childcare centers in need of small-scale financing. This program caters to businesses that require smaller amounts of funding than offered under the larger SBA loan programs.
Microloans are distributed to borrowers through intermediary lenders, and the SBA microloan loan limit is $50,000. The average loan awarded tends to be around $13,000.
SBA Loan Limits by use case
If you’re interested in applying for an SBA loan for specific purposes, like buying a business or improving a commercial property, this chart can help you figure out which loan program you would use, and the applicable maximum SBA loan amount.
Keep in mind that most businesses will not qualify for a loan of the maximum amount, and you must meet SBA eligibility requirements for each of these uses of proceeds to qualify.
Navigating the world of small business loans can be complex, and changes in policies or procedures by the U.S. Small Business Administration (SBA) add a new layer of challenge. However, staying informed about SBA updates isn’t optional - it’s essential for business owners who want to capitalize on growth opportunities or secure working capital in today’s environment.
In early 2025, the SBA released new guidance that goes into effect on June 1, 2025. These changes impact eligibility criteria, loan classifications, and documentation expectations across SBA 7(a) and 504 programs. If your business is considering a government-backed loan - or already relying on one - this guide breaks down what’s new, what it means, and how to prepare.
Why this matters now
The SBA SOP 50 10 8 (Lender and Development Company Loan Programs) is 448 pages long - not exactly light reading for a busy business owner. But within it are critical shifts that could impact your funding journey.
SBA loans offer some of the most favorable terms on the market, supporting everything from working capital to equipment, disaster recovery, and growth. Missing these changes could mean:
- Being disqualified from overlooked criteria
- Delays in the loan process due to missing documentation
- Leaving money on the table while competitors secure better funding
Key 2025 SBA Updates Every Business Should Know
The latest SBA Standard Operating Procedure (SOP 50 10 8), replaces SOP 50 10 7.1 and brings substantial changes across the board. Here’s what small business owners need to know:
Citizenship requirements just got stricter
To qualify, 100% of owners, guarantors, and key employees must now be U.S. citizens, nationals, or lawful permanent residents (green card holders). This replaces the previous 51% threshold and disqualifies any company with foreign stakeholders, even indirectly.
With the new rule, all direct and/or indirect owners or SBA guarantors must be U.S. citizens, U.S. nationals, or lawful permanent residents. SBA lenders must certify that no owners or guarantors are ineligible persons in E-Tran.
The new rule also defines an ineligible person:
- Foreign nationals
- Those granted asylum
- Refugees
- Visa holders
- Nonimmigrant aliens
- Deferred Action for Childhood Arrivals (DACA) recipients
- Undocumented aliens in the U.S. illegally
Finally, the SBA has introduced a six-month lookback requirement. Applicant businesses are ineligible if any associate of the business was an ineligible person in the six months before the SBA loan number was issued unless they have completely divested their ownership interest and severed all relationship with the applicant and company for the life of the loan.
More industries are now ineligible
SOP 50 10 8 introduces a dedicated section for types of ineligible businesses in the update, with criteria for determining eligibility by business type. Businesses involved in marijuana, hemp, and cannabidiol (CBD) operations are now officially excluded again, reinstating pre-2023 policies.
Higher SBSS score minimum for 7(a) small loans
Previously, the minimum acceptable SBSS score to be eligible for a 7(a) small loan was 155. The SBA has updated the minimum to a 165 score as of June 1, 2025.
There’s another change worth noting. Regardless of the SBSS score obtained, a business is ineligible if it has an existing 7(a) or 504 loan that is not current (required payment not made in more than 29 days).
Stricter “Credit Elsewhere” documentation
Demonstrating that credit is not available elsewhere on reasonable terms from non-federal, non-state, or non-local sources has been a longtime requirement for eligibility. This hasn’t changed; however, where lenders had to give a broad certification and substantiation that credit wasn’t available elsewhere, they now have to give specific reasons why the applicant doesn’t meet conventional loan policy, with supporting documentation.
Lenders also can’t certify based on the applicant's credit score alone, which means a more thorough analysis of why a small business won’t meet standard loan policy requirements beyond a poor credit score.
As part of this, an applicant's personal liquidity, not just business liquidity will be assessed, and if an applicant has significant personal cash or assets they may be disqualified, even if the business would otherwise qualify on paper.
Lenders are now responsible for verification
While not a direct requirement, it’s worth noting that lenders are now accountable for verifying applicant eligibility. Before the rule change, the SBA took responsibility for verifying applicant eligibility requirements. Now, specific processes and frameworks have been developed for lenders to take on the burden of reviewing and documenting eligibility for an SBA loan directly, except for certain determinations that will be handled by the SBA.
Changes to SBA 7(a) loan categories
Another notable rule update is to 7(a) loan categories themselves, decreasing the upper limit for 7(a) small loans, and the lower limit for 7(a) standard loans.
SBA Franchise Directory reinstated
SOP 50 10 8 has reinstated the SBA Franchise Directory, creating a catalog of preapproved businesses for easier decision-making by lenders. As a positive, this helps franchise owners benefit from a streamlined certification process. However, if a franchise is not listed in the directory, or hasn’t submitted the required documentation to verify eligibility and receive new certification by July 31, 2025, they will be removed.
If a franchise is not in the directory, applicants will need to apply to get added to it before the SBA loan file can move forward.
Revenue-based financing and factoring debt can’t be refinanced
Previously, merchant cash advances (revenue-based financing) and factoring weren’t explicitly listed as being ineligible for refinancing. However, the SBA now defines merchant cash advances as “a purchase of future receivables”, not a traditional loan, so as of the effective date, these loans can’t be refinanced with SBA funds.
How SBA Rule Changes Affect Small Business Owners
The 2025 changes bring both new challenges and new responsibilities. For many small business owners, this means it’s time to:
Reassess your ownership structure
The SBA’s eligible person requirements are stricter than ever, and many small businesses that were eligible prior no longer are. You’ll need to carefully assess your current ownership structure and determine if your business meets ownership eligibility requirements.
If it doesn’t, you can consider the path of changing your ownership structure, or explore your funding options through alternate sources beyond the SBA.
Strengthen your documentation
There's an increased need for strong documentation in multiple areas of the application process, from person eligibility to demonstrating why conventional credit isn’t available. Review your business's current documentation practices and make improvements in advance to reduce stress and errors in the updated SBA application process.
Confirm industry eligibility
Not only do the 2025 SBA rule changes bar certain businesses from eligibility, but it also provides expanded context and examples of types of businesses that are ineligible or exceptions to each rule. Familiarize yourself with the SBA SOP 50 10 8 Section A, Chapter 1 to determine whether your business is eligible based on industry.
Know Your SBSS score
As the SBSS minimum score has increased, many businesses that were previously eligible for smaller SBA 7(a) loans may find themselves battling stricter credit requirements. Take steps to improve your score proactively to avoid being shut out of SBA eligibility.
Where Lendio can help
At Lendio, we’ve helped small businesses secure more than $535 million in SBA funding. We work with a trusted network of SBA lenders to help you:
- Understand your eligibility
- Compare loan options across lenders
- Navigate updated documentation requirements
- Explore alternatives if you’re no longer SBA-eligible
We know these rule changes are complex—but you don’t have to face them alone.
Final word: Stay ready, stay funded
The SBA’s 2025 updates reflect a shift in how government-backed capital is distributed—and who qualifies. While some of the changes may feel like roadblocks, they can also be navigated with the right information and support.
Whether you’re applying for your first SBA loan or reevaluating your funding strategy, now is the time to prepare. Review your structure, improve your documentation, and talk to a trusted partner.
One key aspect that small business owners encounter when applying for Small Business Administration (SBA) loans is the SBA guarantee fee. This fee is a critical component of the loan process, yet it can cause confusion and questions among entrepreneurs. In this guide, we'll explain everything you need to know about it, including its associated costs, how it's calculated, and implications for your loan.
New to SBA loans? Start with our overview of SBA loan options to explore types, terms, and how they work.
What is the SBA guarantee fee?
Because SBA loans are guaranteed up to 50-90% by the Small Business Administration, lenders pay guarantee (or guaranty) fees for some types of financing they issue under the program. These fees help cover the SBA’s costs in the event that a borrower defaults on a loan.
Although the guarantee fee is charged to the lender, the SBA allows lenders to pass the fee onto the borrower. Most lenders will typically do this.
Which SBA loans have guarantee fees?
Not every type of SBA loan will have a guarantee fee assessed. You can expect them for 7(a) and 504 loans, but not for SBA microloans. It’s also important to note that the guarantee fee is assessed only on the portion of the loan guaranteed by the SBA - not the total approved loan amount.
SBA guarantee fee costs (by program)
SBA guarantee fees are based on the guaranteed amount on your SBA, the type of SBA loan, and your repayment term.
SBA 7(a) loan guarantee fees
Guarantee fees for SBA 7(a) loans change each fiscal year. Usually, the SBA will publish updates to lender fees for the coming fiscal year in advance. However, in March 2025, the SBA published an update to lender fees in effect for the remainder of the fiscal year, which means 7(a) loans issued prior to March 27, 2025, and 7(a) loans issued after March 27, 2025 have different fees associated.
Both are included in the tables below.
Guarantee fees for 7(a) loans issued after March 27, 2025
Guarantee fees for 7(a) loans issued before March 27, 2025
*The SBA guarantees a maximum of $3.75 million on 7(a) loans.
SBA Express loan guarantee fees for veterans
For SBA express loans made to businesses owned and controlled by a veteran or the spouse of a veteran, the guarantee fee is $0.
Export Working Capital Loans guarantee fees
Export Working Capital Program loans, another type of 7(a) loan, also have their own guarantee fee structure depending on the maturity term of the loan.
SBA 504 loan guarantee fees
Similar to the 7(a) program, the SBA publishes guarantee fees for the 504 loan program to remain in effect for the coming fiscal year.
Since the 504 program has a two-part funding structure, consisting of a portion of funding from the borrower, from a Certified Development Company (CDC), and a third-party lender, the SBA guarantee fee applies only to the CDC portion of the loan.
For the 2025 fiscal year, there is no guarantee fee on SBA 504 loans. However, the lender can charge the SBA’s annual service fee to the borrower for these loans, which is currently 0.331% for the 2025 fiscal year.
How are SBA guarantee fees calculated?
Calculating the SBA guarantee fee can seem complex, but once you understand the calculations behind it, it's much more manageable. Here is a simplified process:
- Identify the guaranteed portion: Determine the amount of the loan that the SBA guarantees. This typically ranges between 50%-90% of the entire loan, depending on the specific SBA loan program.
- Apply the fee structure: Using the fee rates provided by the SBA, which vary depending on the size and term of the loan, calculate the fee charged on the guaranteed portion.
- Total loan cost: Add up the fee amount and any additional associated loan costs to understand the total cost of the loan.
Remember, the fee is based on the guaranteed portion of the loan, not the total loan amount, which means that the actual amount paid can be less than the full percentage of the entire loan.
Reach out to your SBA lender for assistance if you are having difficulties calculating potential guarantee fees. You can also check out the SBA’s online calculator to determine your guarantee fees.
Additional SBA 7(a) loan fees
Beyond the guarantee fee, small business owners should be aware of other potential charges associated with an SBA 7(a) loan. Here's a breakdown of other fees that the SBA allows lenders to collect from borrowers:
Packaging fees
Lenders can charge borrowers service and packaging fees for the SBA loan. This can take a few forms and structures, so it's important to understand what they are. These fees are for things like:
- Completing an application
- Completing documents related to an application, like business plans or cash flow projections
- Software or tech used to prepare documents
Here’s how packaging fees can be structured:
Flat fee:
The SBA allows lenders to charge a flat fee of up to $2,500 per loan without documenting services performed. Flat fees of above $2,500 require the lender to provide itemization and documentation to the SBA.
Hourly rate:
For packaging fees charged on an hourly rate, the fees must be reasonable and customary for the services performed. It must also be consistent with fees the lender charges on an hourly rate for similarly-sized non-SBA loans.
Percentage of loan amount:
For packaging fees structured as a percentage of the loan amount, the fee can’t exceed either: what the lender charges on a percentage basis for similar-sized non-SBA loans, or the following (whichever is less):
- For loans $150,000 or less: 5% of the loan amount
- For loans $150,001 or more: 3% of the loan amount
If the packaging fee is structured as a percentage of the loan amount, it cannot be more than $30,000.
Extraordinary Servicing fees
Extraordinary servicing fees are charged when your loan requires intensive, out-of-the-ordinary servicing. Examples of this could be: loan workouts, special monitoring, or complex restructures.
The fee must be reasonable and justified based on the services performed, and is subject to SBA approval. The fee can’t exceed 2% of the portion of the loan requiring the extraordinary servicing on most 7(a) loans, with the exception of EWCP loans and CAPlines.
Extraordinary Servicing fee limits for EWCP and CAPLine
Lenders can charge extraordinary servicing fees more that 2% on EWCP and Working Capital CAPlines that are disbursed on a Borrowing Based Certificate. However, these fees must be reasonable based on the extraordinary effort required, and can’t be higher than fees charged on a lender’s similarly-sized, non-SBA commercial loans.
Out-of-pocket expenses
You may see out-of-pocket expenses charged with your SBA loan. These cover necessary expenses for the lender, and typically include: filing or recording fees, photocopying, delivery charges, appraisal fees, and necessary reports.
Each out-of-pocket expense must be itemized and kept in the file for review by the SBA at any time.
You may have to reimburse your lender for any direct costs (including overhead) incurred for legal services by in-house counsel. However, these fees can’t exceed the cost of outside counsel, and must be assessed on an hourly basis.
Late payment fee
If you are more than 10 days delinquent on your regularly scheduled SBA loan payment, your lender can charge a late payment fee. It can’t exceed more than 5% of the regular loan payment.
Additional SBA 504 loan fees
Additional allowed fees for 504 loans differ in structure from 7(a) loans, and may be paid to several parties to the loan. Before you review the breakdown, here’s a quick refresher on some loan terminology that differs from 7(a) loans that you’ll see in use below.
- Debenture: a loan funded by investors
- Net Debenture: the amount of the SBA portion of your loan that’s actually available for your project after required fees are taken out, or your take-home amount of the loan.
- Gross Debenture: the total amount raised through the debenture to fund the SBA portion of the loan, or the sticker price before any fees are deducted.
Conclusion
For small business owners accessing capital through SBA loan programs, understanding the SBA guarantee fee is fundamental. It's just as important to plan for this expense as it is to forecast other business costs. Always make sure to assess the full picture of loan costs and discuss any fee-related questions with your SBA-approved lender.
With careful consideration, the SBA's programs can be a powerful tool in growing and sustaining your business. Your efforts to comprehend the fee structures will position you to make well-informed financial decisions that keep your business's bottom line healthy. Remember, staying informed about the costs of borrowing is essential in the stewardship of your enterprise.
According to the U.S. Small Business Administration (SBA), small businesses account for 99.9% of all businesses in the U.S. But what exactly is a small business?
The SBA sets specific criteria to categorize businesses under the ‘small business’ designation, in order to determine eligibility for support initiatives and funding, like SBA loan programs. Below, we’ll dive deeper into how the SBA defines a small business, so you can determine whether you meet and qualify for certain benefits.
The SBA definition of a small business.
The SBA defines a small business by the maximum number of employees, or maximum amount of annual receipts it has. However, these maximum limits depend upon the industry of the company, which we'll explore below.
Criteria for qualifying as a small business.
The SBA uses two possible size criteria that a business can qualify as “small” under - the Industry Size Standard, and the Alternative Size Standard.
SBA Industry Size Standard
For each industry classified by the North American Industry Classification System (NAICS), the SBA weighs economic characteristics like:
- Degree of competition
- Average business size
- Start-up costs and entry barriers
- Distribution of businesses across the industry by size
- Technological changes
- Competition from other industries
- Growth trends
- Historical activity
- Unique factors
Then, the SBA establishes an industry size standard to define a small business in that industry, consisting of the maximum number of employees, or maximum amount of average annual receipts a business can have to be classified as small.
To find the specific size standard for your industry, here’s what to do.
1. Look up your NAICS code.
You’ll need to have your NAICS code on hand to find your size standards. This is a six-digit code number that helps companies explain what they do. You can use the NAICS search tool to find your industry, or read our guide on how to look up your NAICS code for more information.
2. Look up your SBA industry size standard.
Once you’ve found the NAICS code that best describes the primary activity of your business, or the one that produces the most revenue, you can find the SBA size standards for that industry.
Here’s a sampling of several industries and the maximum average annual receipts or number of employees that qualify them as a small business. In reality, there are hundreds of NAICS codes, so you should look at the complete listing in the SBA table of size standards.
3. Verify you meet the SBA size standard
Confirm your employee count, or your annual receipts meets the industry size standard. You can also use the SBA size standards tool to input your information and find out if you meet the SBA’s criteria for a small business.
In addition to maximum average annual receipts and maximum number of employees, the SBA will consider whether your company meets other eligibility requirements for SBA loans.
SBA Alternative Size Standard
Small businesses can also meet the SBA size requirement through the alternative size standard.
To meet this size standard, the business can’t have a tangible net worth over $20 million dollars, and the average net income after Federal income taxes (excluding carry-over losses) for 2 full years before the application can’t exceed $6.5 million.
Benefits of being classified as a small business.
If the SBA does classify your company as a small business, this opens the door to several resources and benefits.
SBA loans
There are a number of SBA loan programs that offer low rates and longer repayment terms you might not be able to find elsewhere.
The 7(a) loan is the SBA’s most popular program and offers up to $5 million in capital for small business owners. Upon approval, you can use this capital to cover a variety of expenses, such as startup expenses, real estate, short- and long-term working capital, and equipment.
Business development programs.
The SBA has Small Business Development Centers (SBDCs) throughout the U.S. to provide small businesses with counseling, training, and technical assistance. Another organization called SCORE also offers free mentorship and resources. You can utilize these development programs if you qualify as a small business.
Government contracts.
The SBA works partners with federal agencies to award 23% of prime government contract dollars to qualifying small businesses. If you meet the SBA definition for small business, you can submit bids and take advantage of government contracts, which offer an additional, reliable stream of income.
Research grants
The Small Business and Innovation Research research grants are designed to encourage small business owners to dive into technology and commercialization opportunities. While this is a highly competitive program, it also offers small businesses the chance to expand your technological investment and potentially profit from commercialization.
Tax incentives
As a small business, you can also save money with tax incentives. The Small Business Health Insurance Tax Credit, for example, gives eligible small business owners the chance to save up to 50% of employee health care costs, if they buy insurance from the Small Business Health Options Program (SHOP). Some cities, like Philadelphia, also award tax credits to entrepreneurs and small business owners.
Bottom line
If you believe you’re a small business owner, there’s a good chance the SBA does, as well. But your average annual receipts and number of employees may position you as a medium sized or larger business instead. That’s why it’s wise to do some research and determine where you stand. If the SBA does consider you as a small business, you’ll have access to resources, funding options, and incentives that larger businesses won’t qualify for!
SBA loans are some of the most sought-after forms of small business financing, because of their favorable rates and terms. They also provide small businesses with a premium financial product, without necessarily having the established track record required by banks and traditional financial institutions. For a broader overview of how SBA loans work and what to expect, start with our SBA Loans overview.
However, the SBA loan program has strict eligibility criteria to qualify for 7(a) and 504 loans. As an added layer, the SBA-approved lender who provides your SBA loan will also have their own set of criteria for approval.
In this guide, we’ll break down the general eligibility requirements outlined by the Small Business Administration (SBA), specific criteria for each loan program, and common lender requirements that your small business will have to meet in order to qualify for this government-backed financing.
You’ll learn:
- General SBA loan eligibility requirements (for any SBA loan regardless of type)
- Specific qualification requirements for 7(a) and 504 loans
- What lenders look for, and their requirements to approve an SBA loan
General SBA loan requirements
Before you can be considered eligible for any SBA loan program, there’s a standard list of eligibility requirements your small business must meet.
Business operations requirements
In order to qualify for an SBA loan, your small business must be:
- An operating business. There are some exemptions for Eligible Passive Companies (EPCs), according to the use of the loan proceeds.
- A for-profit business, officially registered and operating legally.
- Located in, primarily operating in the United States, and authorized to do business in the state or territory where applying for a loan. If the business operates internationally, the loan proceeds can only be used exclusively for U.S. operations.
Size standards
To qualify for an SBA loan, businesses must meet the SBA’s definition of a small business. The business can qualify for this definition in one of two ways - by industry size standards, or by alternative size standards.
Learn more about how the SBA defines a small business.
Industry restrictions
The SBA identifies some business industries, types or characteristics that make them ineligible for SBA loan financing. There are some exceptions to each, but for the most part, if your business is any of the following, you won’t qualify.
- Nonprofit
- Government-owned organization
- Lender, or engages in loan packaging, lending, investment or financing
- Apartment building, mobile home park or nonmedical residential facility
- Developer or landlord leasing land and/or buildings
- Marijuana producer or engaged in the production or sale of marijuana products (some exceptions for hemp products that meet federal definition.)
- Church, synagogue, mosque, or other religious organization
- Business that restricts patronage for any other reason beyond capacity (ex: women’s health club)
Further, if your business engages in any of the following, you won’t qualify.
- Political or lobbying activities
- Gambling
- Illegal activities
- Live adult or lewd performances, services, presentations or displays
- Pyramid or multilevel sales distribution plans
Citizenship requirements
The SBA updated its citizenship eligibility requirements to limit SBA loans to businesses with 100% direct and indirect owners and guarantors who are U.S. citizens, U.S. nationals, or lawful permanent residents ("green card" holders).
A business is ineligible for an SBA loan if any owners or guarantors are “Ineligible Persons”, including foreign nationals, asylum seekers, refugees, visa holders, nonimmigrant aliens, and/or DACA recipients.
“Credit Elsewhere” rule
If you apply for an SBA loan, you must be able to demonstrate that some or all of the desired funding is not available elsewhere on reasonable terms from non-government sources. In other words, you would not be able to be secure a loan for the amount from a bank or financial institution based on your credit history or other business characteristics. As of June 2025, lenders now assess personal liquidity of owners and guarantors when making the determination if you would be able to meet credit standards from non-government sources.
Going forward, lenders will now certify to the SBA that some of all of the loan is not available from:
- Personal liquidity of owners with 20% or more equity, their spouses and minor children, (with exceptions for reasonable funds to cover future medical, educational and retirement.)
- Conventional lenders or other non-government sources
Your lender will also need to provide detail on the specific factors that demonstrate weakness in your credit for the SBA. Going forward, your lender will not be able to use only your credit score to determine credit weakness.
Business character requirements
In order to be eligible for an SBA loan, your business cannot have any owner incarcerated, on parole, or probation. Criminal history may also prevent qualifying for a loan, depending on the nature of any convictions.
Your business also must be current on any existing government debt obligations, and can not have defaulted on any federal debt that resulted in a loss to the government. This includes prior SBA loans.
Finally, anyone applying for an SBA loan must be current on all federal, state and local taxes, and must have filed federal tax returns to be eligible.
Allowed use of funds
SBA loans have requirements around how funds are used. You can use any SBA loan to:
- Acquire, lease or improve land
- Purchase, convert, expand or renovate one or more existing buildings
- Build new buildings
- Buy or lease equipment or machinery
Each SBA loan program has additional specifications around allowed use of funds. You'll find more detail in the following sections for each loan program.
Guarantee and collateral requirements
Guarantee requirements
All individuals who own more than 20% of the business are required to submit an unlimited personal guarantee to secure an SBA loan, with the exception of SBA Disaster Loans under $200,000. This includes all SBA 7(a) loans, 504 loans, and most microloans.
If you use jointly-owned property as collateral for a loan, your spouse may also have to sign a limited guarantee.
Collateral requirements for SBA loans
Collateral is required for SBA loans in excess of $50,000. Here’s how it works:
To qualify for an SBA loan, there isn't a fixed amount of collateral you have to have. Lenders must use what's reasonable available to secure the loan, even if it doesn't cover the full amount.
So you aren’t required to have a minimum amount of collateral, but you are required to make what you have available depending on the size of your SBA loan.
SBA program specific qualification requirements
In this section, we’ll cover additional requirements beyond the core SBA requirements that apply to 7(a) loans and 504 loans.
SBA 7(a) loan requirements
Once you’ve determined you meet the general SBA loan qualification requirements, there are a few more specific to the SBA 7(a) loan program you’ll need to meet.
Eligible uses of proceeds for 7(a) loans
In addition to the general requirements for use of proceeds, 7(a) loan proceeds can be used for:
- Debt refinancing
- Ownership changes
- Inventory
- Supplies and raw materials
- Working capital
Equity injection rules for 7(a) loans
Equity injections may be required in a few scenarios when applying for a 7a loan. If you’re:
- Starting a brand new business
- Buying an existing business
You’ll typically be required to provide an equity injection (put some of your own money into the business).
Equity injections can be:
- Cash you put into the business
- Seller financing
- Equipment or assets you’re contributing
If you aren’t starting or buying a business, you may not need an equity injection. Your lender will look over whether the existing equity in the business is strong enough. If it is not, you may still be asked to inject equity.
Cash flow requirements for 7(a) loan
When evaluating your application for an SBA loan, lenders will work off the assumption that loan repayment will happen from the businesses cash flow - not assets or collateral. So, if your financials don’t reflect a reasonable ability to repay the loan from cash flow, you won’t be approved.
Credit requirements fo 7(a) loan
The SBA does not require any minimum credit score, time in business, or average monthly sales for 7a loans. However, SBA lenders often have their own requirements for businesses to meet, which we will discuss below.
One notable credit requirement exception is a minimum business credit score (FICO score) of 165 for businesses applying for a SBA 7(a) small loan. As of June 1, 2025, this increases from the minimum of 155.
SBA 504 Loan Requirements
These loans are intended for small business owners who want to expand their operations. In a nutshell, 504 loans (aka Certified Development Company loans) are laser-focused on real estate.
Eligible uses of proceeds for 504 loans
504 loans are strictly for fixed asset projects, such as:
- Buying land or buildings
- Constructing or renovating facilities
- Purchasing long-term machinery or equipment
Unlike a 7(a) loan, you can’t use a 504 loan for working capital, inventory, refinancing debt that isn’t for financing fixed assets, or buying a business.
Equity injection requirements for 504 loans
Most 504 loan borrowers are required to contribute at least 10% of the total project cost. This is because the loan is a two-part structure between a Certified Development Company (CDC) and a bank or private lender.
The bank typically finances 50%, the CDC finances 40% via the SBA, and you contribute 10-20%.
In some scenarios, you may need to contribute more (15-20%). For example, if your business is a startup (less than 2 years old), or the project involves special-use or limited-market property.
Economic development objectives requirements for 504 loans
504 projects must meet at least one of the following economic development objectives to be eligible for financing:
- Job Creation or retention - the project must create or retain at least 1 job per $90,000 of SBA-guaranteed financing ($140,000 for small manufacturers and energy public policy projects.) In addition, 75% of the jobs must be located in the same community as the project.
- Public Policy goals - The project meets one of the community development or public policy goals outlined by the SBA, including revitalizing a business district of a community, expanding exports, supporting minority, veteran, or women-owned businesses, meeting energy efficiency standards or reducing energy consumption, or supporting rural development.
Net worth and income limits for 504 loans
In order to qualify for an SBA 504 loan, businesses must meet the SBA’s size standards as mentioned before. However, it’s important to note that these cover restrictions on net worth and net income under the Alternative Size Standard. Your business (including associates), must have:
- A tangible net worth of $20 million or less
- An average net income (after federal taxes) for the two full fiscal years before applying of $6.5 million or less. This excludes any carryover losses.
SBA disaster loans requirements
An SBA disaster loan is a low-interest way to recover from the physical and economic damage caused by declared disasters. These loans are open to a more diverse range of businesses than other SBA programs. There are no size restrictions, and private nonprofit organizations, homeowners, and renters can qualify.
You can use a disaster loan for repairing or replacing personal property, real estate, equipment, machinery, inventory, and business assets. Basically, these loans are meant to help you get your operation back where it was before the disaster struck. You’re not allowed to use the funds to try expanding your business beyond where it was pre-disaster.
Here are the 4 main types of disaster loans:
1. Home and Personal Property Loans
To qualify for one of these loans, you aren’t required to own a business. Instead, this program is meant to help a wide variety of victims of a disaster.
2. Business Physical Disaster Loans
For times when a business or organization sustains damage during a disaster, these loans offer up to $2 million to assist in replacing and restoring damaged property. To qualify, you must live in the declared disaster area.
3. Economic Injury Disaster Loans
Not all damage from disasters is of the physical kind. These loans are meant to assist those who may not have experienced physical damage but have still been negatively impacted. If you qualify, you’ll get as much as $2 million to pay for expenses you would’ve been able to handle if not for the disaster.
4. Military Reservists Economic Injury Loans
These loans are meant for business owners who are employing one or more military reservists called to active duty. The SBA provides financing that makes it possible to continue your business operations.
If you have questions about whether or not you are in a presidential and SBA-declared disaster area, you can search by state and territory with the SBA’s online database. Common examples of disasters added to the database include fires, tornadoes, flooding, earthquakes, and drought.
For those who qualify, it’s important to follow the SBA loan requirements as carefully as possible. The first step is registering with the Federal Emergency Management Agency (FEMA). You can do this by calling FEMA at 1-800-621-3362 or visiting DisasterAssistance.gov. Once you’ve received a FEMA registration number, you’ll be eligible to fill out the SBA online application.
Before starting the application, make sure you have this additional information on hand:
- Contact information for all applicants
- Social Security numbers for all applicants
- Employer Identification Number for business applicants
- Deed or lease
- Insurance information
- Business income
- Business account balances
- Business monthly expenses
Once you’ve clicked submit on the application, you’ll need to sit back and wait for the SBA to review your documents and dispatch an inspector. Following an on-site evaluation from the inspector, the SBA will have an estimate for the cost of your damage. You should know that the SBA considers disaster loans a priority, so if you qualify, you’ll get the good news in as little as 3 weeks.
SBA Express Bridge Loans (EBLs) requirements
The Express Bridge Loan (EBL) Pilot Program was created to complement the other disaster loans provided by the SBA. It empowers 7(a) lenders to provide financing on an emergency basis. Of course, the only way to qualify is if the need is tied to a disaster-related purpose.
The key words in the name are “express” and “bridge.” Essentially, these loans provide expedited money to businesses hurt by presidentially-declared disasters. These loans are smaller than most, tapping out around $25,000. The idea is that they help you bridge the gap between the disaster and the arrival of more substantial loans.
This SBA loan program requires that you are located in a primary county or contiguous county that’s been presidentially-declared a disaster area, your business had established a banking relationship with the lender as of the date of the disaster, the funds are used for the survival or reopening of your business, and that the application process must be concluded within 6 months of the qualifying disaster.
Lender requirements for SBA loans
In addition to the eligibility requirements outlined by the SBA, lenders will have their own requirements to qualify for an SBA loan. While these requirements will vary, minimum requirements generally start at:
- Minimum two years time in business
- Credit score of 650+
- $50,000k + annual revenue
As of June 1, the burden is on lenders to verify applicants eligibility for SBA loans, which means your lender will require more documentation from you in areas where the SBA previously handled verification.
Required Documentation
- Six months of business bank statements
- Driver's license or state ID
- Voided check from your business account
- Month-to-date transactions
- Two years of business tax returns
- Two years of personal tax returns from any owners with 20% or more ownership
- Debt schedule
- Year-to-date profit and loss statement
- Year-to-date balance sheet
SBA Loans aren't your only option
While SBA loans are undeniably great, always account for the fact that they take extra time and effort to obtain. You can’t simply stroll along and expect positive results. Do your homework to find the best option, then meticulously gather all the required documents.
Ultimately, the biggest SBA loan requirement is patience. If time is limited and you don’t want to wait for the lengthy SBA approval process, there are other excellent loans you may want to consider. These alternatives include short-term loans, cash advances, equipment financing, and accounts receivable financing.
Each loan product has its pros and cons, which is why it can be helpful to get an expert’s opinion. For questions about a broader range of loan products, including short-term loans and other non-SBA options, feel free to talk to the experts at Lendio. We can answer any questions you have and guide you to the best choice for your needs.
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