Get The Lender's Advantage - To SBA Home Page - Sba

An SBA Preferred Lender is a lender that has been approved by the Small Business Administration to make loan decisions without approval from the SBA. This allows for a much faster loan approval process, with many potential borrowers being approved in as little as 24 hours.

The SBA guarantee enables banks to extend more favorable loan terms and to lend to businesses that sometimes wouldn't be able to borrow money conventionally.

SBA loan pros and cons ProsConsFavorable interest ratesStacks of paperworkLonger repayment termsLong waiting periodExtra support availableYou can't use the money for everythingVariety of loan types availableCollateral may be required1 more row • May 10, 2023

SBA 7(a) Loan This is the most popular of all SBA loans because it has low-interest rates, long repayment terms, and a very flexible use of loans clause.

SBA Express It features the easiest SBA application process and accelerated approval times, plus it offers longer terms and lower down payment requirements than conventional loans.

A Community Advantage loan is a type of SBA 7(a) loan offered under the Community Advantage loan pilot program. It provides loans up to $350,000 to underserved communities, such as businesses in low-income areas.

* Generally used for working capital, the SBA 7(a) loan is a flexible product that can also be used for debt refinance, change of ownership, etc.

A PLP lender is authorized by the SBA to make decisions about whether a loan application complies with the SOP, while GP lenders are required to send each loan to the SBA for review and approval.