Frequently asked questions
These answers are meant to help you plan with confidence. Every request is unique, and final terms are always set by the lender, but this guide will give you a clear sense of what’s possible and how to prepare a strong file.
SBA lending is designed for healthy small businesses with a credible path to repayment. Strong use of funds, realistic projections, and organized financials go a long way. If there’s a solid story and plan, we can usually outline a path and match you with lenders whose credit appetite fits your request.
- SBA 7(a): Versatile—working capital, business acquisition, partner buyout, refinance, equipment, and business owner-occupied real estate.
- CDC/504: Focused on business owner-occupied real estate and major equipment with long fixed terms on the CDC portion.
- Express: Smaller requests with streamlined decisions.
- USDA B&I: For eligible rural businesses; can broaden collateral and term options.
Timelines vary by program, complexity, and third-party reports. Packaging readiness is the biggest accelerator. By presenting an underwriter-ready file up front and working with Preferred SBA Lenders (PLP) when appropriate, reviews can move more smoothly and decisions can come sooner.
Collateral helps, but lack of collateral isn’t automatically a decline. Many successful SBA requests emphasize demonstrated cash flow and overall credit strength. In some cases, unsecured SBA options may be available depending on profile, use of funds, and lender guidelines. We’ll help you frame the story that best supports repayment.
Rates are set by the lender within SBA guidelines and reflect market conditions, loan size, and risk. Third-party costs (appraisals, reports, filings) may apply. We prioritize lenders who are transparent about pricing and closing requirements, so you can plan with clear expectations.
It depends on the program and use of funds. Many 7(a) acquisitions and start-ups include an injection; CDC/504 often targets ~10% borrower contribution for eligible projects. Your structure can incorporate multiple sources (e.g., cash, seller note on standby, eligible credits). We’ll outline realistic options early.
For SBA eligibility, the operating business typically needs to occupy the majority of the property: 51%+ for existing buildings and 61%+ for new construction. We help plan usage and growth so the project aligns with these thresholds and remains financeable.
Rent Replacement is a planning approach that helps convert existing rent into an ownership payment when occupancy rules are met. In certain scenarios, projects may qualify for up to 100% financing. Eligibility and structure are project-specific—we’ll model options and outline a practical path.
Yes—when timing or readiness is the constraint, a Bridge to SBA can help you move now and refinance into SBA 7(a) or 504 when the file is ready. Bridge options may be real estate-secured or unsecured (up to $1,000,000), subject to credit and lender guidelines.
Lenders look for evidence of repayment behavior and overall profile strength. Strong operations, experience, and cash flow can be meaningful compensating factors. We’ll help you present the full picture in the best light.
Yes. We support start-ups, franchise expansions, partner buyouts, and acquisitions. Strong management experience, credible projections, and a clear operating plan are key. We’ll help you frame those elements for underwriting.
Common uses include working capital, equipment, inventory, business acquisition, partner buyout, refinance of eligible debt, and business owner-occupied real estate (purchase, construction, or improvements). We’ll confirm eligibility and align the structure with program rules.
It varies by project, but you can expect business financials, tax returns, personal financial statements, capitalization details, and a clear use of funds. We assemble these into an underwriter-ready package with narrative, sources/uses, DSCR view, and three-statement projections.
We work across the U.S. (where allowed by law) with a wide range of industries—manufacturing, distribution, healthcare, professional services, trades, logistics, technology services, hospitality, and more. If there’s a credible path to repayment, we’ll help you present it.
PLP lenders have delegated authority, which can streamline reviews and decisions. We maintain relationships with experienced PLP partners and use a research-driven approach to match your request with lenders who regularly fund similar projects or asset classes.
Some SBA loans include a declining prepayment consideration for early payoff within the first years. Terms vary by program and lender. We’ll highlight relevant items in plain language before you proceed so you can make an informed choice.
SBA programs can refinance eligible debt when it improves cash flow or structure under program rules. We’ll review your current obligations and outline practical refinance paths when available.
Ownership and control generally guide guarantor requirements, along with lender policy. We’ll help you map the ownership structure and set expectations early in the process. Generally speaking, anyone with a 20% or greater ownership.
Information above is general and may not apply to every situation. Final terms, eligibility, and timing are determined by the lender and program guidelines. We’ll help you set realistic expectations and present the strongest possible file.