If you have decided that an SBA loan is just perfect for you, you aren't alone. In fact, it can be hard to qualify for because so many small business owners want to take advantage of a low-interest and long-term loan to help them grow their business. These loans are often very affordable and can be a great way to increase your cash flow so you can grow your business.
Unsure if you might qualify? Here are some qualifications that you must have to be eligible for an SBA loan.
1. Your credit score must be 620 or above. You need to show creditors that you are reliable and trustworthy before they will allow you to borrow money.
2. You must have been in business for over two years. However, there are certain SBA microloans that work for startups.
3. Your annual revenue must be more than one hundred thousand dollars.
4. You must be willing to invest your time or money into your business. This is necessary to show creditors that you truly believe in your business and are willing to do what it takes to make it work.
5. Your business must be a for-profit one. You won't be able to get an SBA loan if you have a non-profit business.
6. Your business must be located in the United States. Creditors aren't willing to give loans to businesses that are in other countries.
7. You must have also looked at other financing options before trying for an SBA loan.
That being said, there are several different types of SBA loan programs, all of which have their own requirements. They also have their own terms, conditions, and advantages. Because of this, it is usually a good idea to talk to someone when you are applying for a loan for your small business.
Contact us to help you figure out if an SBA loan is right for you.