Alright buddy, let me tell you a thing or two about SBA lending. Did you know that in the US, 20% of small businesses go under within their first year? Lack of sufficient capital is frequently the nasty culprit responsible for these business busts. Now, we don’t want this to happen to you and your venture, do we?

Enter SBA Lending

These loans are encouraged by the government via the Small Business Administration (SBA), with the motive of fostering development and prosperity of the small business ecosystem. The trick here is, these loans are guaranteed by SBA and provided by lending partners, to cut down the risk of collapse.

So When Do You Go For an SBA Loan?

Time to Refinance Sky-High Debt

Being a small business owner, the reality is that you guys are seen as high-stake borrowers before banks and lenders. As a result, you often end up trapped with high interest rates. A pricey debt means things become tough for your business. The SBA’s got you covered here. Since these SBA linked loans are supported by government, lenders generally quote lower rates.

For refinancing burdensome debt, you’d want to consider the 7(a) loan program.

When Buying an Existing Firm is on Your Mind

As your fledgling business soars, there may come a time when you might be eying the acquisition of another company to boost growth. With the 7(a) loan program, you can bag up to $5 million from the SBA’s lending partner.

When Major Fixed Asset Purchase is on The Horizon

With a successful run, growth is warranted and that might ask for buying larger fixed assets which can involve land, existing or new buildings, renovation projects, and long-term machinery. Look towards SBA’s 504/CDC program which can grant you loans up to $20 million.

In The Need of a Petite Finance

If your business is too low-key or new to meet the limits for a typical SBA lending partner, your firm might still require financing. That’s where the SBA’s microloan program steps in. They’ll finance you with up to $50,000, although the interest rate could be slightly above the market due to increased risk.

Desperately Crave Working Capital?

With irregular cash flow messing around with your business, you’re going to need working capital. The SBA is equipped to improve your working capital landscape to help you manage recurring operational costs, purchasing inventory, filling seasonal cash flow cracks, or to ensure short-term financing for contracts.

Newbies on the block or smaller firms can leverage the microloan program. On the other hand, the 7(a) program suits established small businesses.

How to Qualify for SBA Lending

Getting SBA funded can take longer than usual. Roughly around 90 days from application to cash-in-hand. You’ve got to ensure you meet these criteria so that your application sails smooth.

Business Located in the U.S.

Your business needs to reside within the US or its territories. Besides, its operations need to be confined within these regions as well.

For-Profit Business in an Eligible Industry

You need to have a registered, profit-making business in the US to qualify for any SBA financing.

Ownership Equity

The business owner has to have equity in the business. This can be an investment of money or even time.

All Other Financing Options Depleted

Businesses are obligated to explore other financing options before turning to SBA for funding. You should only apply for an SBA loan once you have exhausted all other possibilities.

Personal background checks can also be conducted for owners who possess 20% or more of the business. In such a scenario, the SBA’s lending partner may ask for your personal guarantee on loan.

The Flipside

You need to understand that if your business defaults on an SBA loan, you could be personally held accountable. The spouse of risk in lending to you, reduced by the SBA guarantee, doesn’t absolve you of your liabilities.

What you need is an experienced and defend-orientated attorney on your side, so you’re covered when it really matters. Here’s where we come in, the team at Lawscape. Lawscape and his seasoned legal brigade have handles millions in SBA loans and defenses, via Offer of Compromise, Negotiated Repayment Agreements, and without resorting to bankruptcy filings or house foreclosures.

With Lawscape, you’re going to have a hawkish representation before SBA, SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. Plus, we’re also open to treasury debt disputes.

So, when that unanticipated SBA debt problem pops up, don’t be surprised. Be ready. Contact us and let’s build a win-win relationship together.