Why Not Apply for the SBA Loans?- Quicker and Easier

Benefit from easier qualification, longer terms and lower down payments on fixed assets than most standard loans.

Qualifications
You own and operate a for-profit business
Your business is legally organized as a sole proprietorship, corporation, partnership or LLC
Your business does not generally qualify for conventional credit

SBA 504                                                                        Loans from $350,000
Purchase equipment                                           Terms:
Purchase commercial real estate                7-10 years on equipment
Fund construction or renovation                10-20 years on real estate
Loans from $350,000                                         Up to 2-year construction period

SBA 7(a)                                                                       Loans from $350,000-$3.5 million
Purchase equipment or inventory              Terms:
Purchase or expand a business                     Up to 7 years for working capital
Get working capital                                             Up to 10 years for purchases
Refinance debt                                                       Up to 25 years for real estate

About qualifying for an SBA loan
Bank of America meets all SBA Preferred Lender Program eligibility criteria, including proficiency in processing and servicing SBA-guaranteed loans. Talk to a small business specialist by phone or in person to get a recommendation and start your application.

Top FAQs

What is a Small Business Administration (SBA) loan? 
The SBA is a federal agency that helps established businesses grow and helps new businesses get started. As a borrower, you’re not borrowing from the SBA, you’re borrowing from a financial institution like Bank of America that works with the SBA to provide loans to small business customers.

Is an SBA loan only for a new business?
No. Bank of America provides SBA loans to many established businesses so they can grow and expand.

What’s the difference between an SBA loan and a business loan from Bank of America?
A conventional business loan from Bank of America is solely the bank’s risk and subject to Bank lending guidelines. An SBA loan is a business loan that splits the risk between the Bank and the SBA, which guarantees a portion of those loans. SBA loans are subject to the lending guidelines of both the SBA and Bank of America.

Is an SBA loan from one bank the same as from another bank?
No. An SBA loan must be approved by the issuing bank, and each bank has its own lending criteria. An SBA Preferred Lender is likely to provide you with better terms and a smoother application and closing process than a bank that is not an SBA Preferred Lender.

Is Bank of America an SBA Preferred Lender?
Yes. This means we meet all Preferred Lender Program eligibility criteria, including a proficiency in processing and servicing SBA-guaranteed loans. As an SBA Preferred Lender, we’re part of the SBA’s effort to streamline the procedures necessary to provide financial assistance to the small business community.

How can I apply for an SBA loan from Bank of America?
A business lending specialist can assist you by phone or in person with any loan or line of credit application. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

Things to know about SBA loans

Understanding these 5 features of SBA-backed loans can help you decide if they’re right for your business.

The SBA (Small Business Administration) backs loans, they don’t lend money. Understanding a little more about loans backed by the Small Business Administration can help you decide whether they’re right for your business.
The SBA does not engage in direct lending
The SBA offers a variety of loan programs for very specific purposes. When you apply for an SBA loan, though, you do so through a bank, not through the SBA itself. While the bank is providing the actual loan, the SBA is guaranteeing a portion of that loan. In effect, the SBA is serving as a co-signer, which in turn helps banks provide more flexible terms to borrowers.

Not all banks offer the same SBA programs
The SBA has several loan programs, including 7(a) for general small business loans, 504 for real estate and equipment, microloans and disaster loans. An SBA loan must first be approved by the issuing bank, which may choose which programs to offer. Also, the lending requirements for any given SBA loan may vary from bank to bank, depending on specific bank policies.

SBA loan programs are not just for new businesses
The SBA has several loan programs, including 7(a) for general small business loans, 504 for real estate and equipment, microloans and disaster loans. An SBA loan must first be approved by the issuing bank, which may choose which programs to offer. Also, the lending requirements for any given SBA loan may vary from bank to bank, depending on specific bank policies.

An SBA loan means additional paperwork
Applying for an SBA loan means you need to provide paperwork to both the bank and the SBA. In addition to the documentation a bank will typically require, the SBA requirements (some of which may also be bank requirements) typically include an SBA loan application, a business plan, a personal financial statement, 3 years of business financial statements, 3 years of federal business tax returns, a one-year cash flow projection, information about all owners and an explanation of how a loan will help the business; and a copy of the business lease or proposed terms. By the way, that’s not a complete list; other documentation and information may be requested.

You can get better terms with an SBA loan
SBA loans are designed to help borrowers who may not meet the lending standards set by most banks. These can include issues such as a recent change in business ownership, a shortfall in collateral to secure the loan, business principals who have a low net worth or the need for extended payment terms.

 

 

 

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