SBA Loans Requirements

Many small business owners who are looking for loans consider the Small Business Administration (SBA) to be their main option. What most of them are unaware of is that qualifying for SBA loans is hard – to the point that most often, they will only allow the best qualifying businesses and candidates.

But what makes the requirements for SBA loans hard? What makes it almost impenetrable for new businesses that hardly earn high profit? In this article, we’ll just be discussing that – we’ll also show you an alternative to the SBA loans you’re looking to get with requirements that are much simpler.

Common Business Loan Requirements

What institutions and companies will look for will vary and depend from company to company. Some companies might ask for more than what the recommended requirements are, while there are some that might ask for less.

The question on what the requirements are could be a bit of a blur. However, to tell you some of the general requirements for business loans, they include:

For Existing Businesses

• Age of the business or the company
• Monthly income
• Annual income
• Statement of debt-to-credit ratio
• Purpose of the loans

For Startup Businesses

• Personal credit history or credit record
• History with other lenders
• Business Plan
• Financial Projection

SBA Loans Requirements

If you are planning to apply for a loan with the SBA, they have qualifications and requirements – and to tell you honestly, their assessment and evaluation processes and procedures are difficult for regular small business and startup owners.

But here are the loan requirements for the loans that the SBA provides:

• Must be a business that earns profit (a for-profit business)
• Should be, or planning to do business in the vicinity of the United States (U.S.) or any of its territories
• Must have invested time or money in the business; have reasonable equity
• Should use alternative financial resources before they plan on asking the SBA for help. Once they receive assistance from the SBA, the business wouldn’t be able to ask assistance from other lenders.

Can This be Attained by Any Business?

We can all agree that the eligibility requirements of the loans that the SBA offers can be quite extreme. Most stabilized and established businesses can be approved – but not those who are just starting or experiencing trouble with their industries.

They have special considerations that apply to some businesses as well as those who really aren’t eligible for it. If looked at a bigger, a more general perspective, it’s kind of difficult and challenging to attain.

But as difficult as they may seem, that’s what the SBA wants – that’s what businesses should be in order for them to apply. If you don’t pass or meet these requirements, don’t lose hope. There are other options that you can go to as well.

We here at SoFlo Funding are open to providing loans to small businesses, startups, and entrepreneurs. We are open in serving and in providing businesses the financial assistance they need so that they can push operations, providing more jobs and securing the country’s economy.

Our Business Loans

SoFlo Funding is a company that is capable of providing a wide variety of loans which include personal, business, secured, and unsecured loans. The business loans we offer can be for entrepreneurs who want to invest in themselves, startups that are looking to enter the market with a bang, small business owners who are just starting, and even small businesses that need funding.

Unlike the requirements that the SBA looks for, our requirements aren’t that hard to get. In fact, we’ll need only the proof that your business is existent or if you’re just starting the business, some type of income that could help in the paying off of debt.

For startup businesses, we usually look for:

• The credit score and the credit standing
• History with other and previous lenders
• Proof of income

We wouldn’t ask for ridiculous amounts of data and information that wouldn’t be useful for the loan you’re applying for.