Get Fall 2009 - SBA - Sba

To be considered creditworthy, the SBA typically requires a credit score of 690 or above and prefers owners over more than 20 percent of the business provide a personal guarantee. Typically, the SBA will require businesses to explore other financing options before pursuing an SBA 7(a) loan.

How long does each loan type take? Loan typeAverage funding timelineSBA 7(a) loan60 to 90 daysSBA Microloan30 to 90 daysSBA 504/CDC loanUp to 6 monthsSBA Express loan5 to 30 days1 more row • May 30, 2023

Use of loan proceeds 7(a) loans can be used for: Acquiring, refinancing, or improving real estate and/or buildings. Short- and long-term working capital. Refinancing current business debt.

The minimum credit score required for an SBA loan depends on the type of loan. For SBA Microloans, the minimum credit score is typically between 620-640. For SBA 7(a) loans, the minimum credit score is typically 640, but borrowers may find greater success if they can boost their credit score into the 680+ range.

It can be difficult to get an SBA 7(a) loan if you don't have strong annual revenue, a good credit score (690+) and at least two years in business. SBA 7(a) loan requirements vary from lender to lender, but you'll generally need to meet these criteria to qualify.

SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns; preserve free competitive enterprise; and maintain and strengthen the overall economy of our nation.

Terms: Loan terms vary ing to the purpose of the loan, generally up to 25 years for real estate or 10 years for other fixed assets and working capital.

7(a) Small For loans $50,000 or less: SBA does not require collateral, except for International Trade loans, which have different requirements.