SBA LOANS

When conventional financing has let you down, utilize the power of the federal government to get the funds you need for your small business. The SBA has a range of loans designed to help for-profit business owners cover expenses.

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Small Business Loans

What ARE SBA LOANS?

SBA loans are loans that are backed, or partially guaranteed, by the U.S. Small Business Administration. An SBA backed loan can be used for a broad variety of purposes, including aquiring real estate, funding a construction project, getting new equipment, purchasing inventory, buying a business, as general working capital, or even to refinance existing non-SBA loans.

The SBA is not a bank or direct lender. Instead, the SBA can guarantee (in case of default) a portion of a private loan made to a small business, thereby reducing risk to the lender. Because of the guarantees made by the SBA, these lenders will then provide financing to small businesses that would otherwise be declined without the SBA’s support.

SBA loans have a more rigorous documentation process, but are often the most affordable loans for growing companies.

Traditional and Non-Traditional Lenders Available to you

Amount Of Capital Accessible Through Network

Quickest Time To Funding Commitment Through Motiva Capital

SBA 7(a)

The 7(a) loan can give you up to $5M for real estate, construction, equipment, or working capital. Interest rates vary by the type of loan but they’re capped by the Administration. Working capital loans and equipment loans mature in 10 years. Real estate and construction loans mature in 25 years.

SBA 504

The 504 loan can be used for real estate, construction, and equipment but not working capital. Most 504 loans max out at $12M, but some circumstances allow you to borrow more. They’re available in 10, 20, and 25-year terms, depending on how you use it. Interest rates cannot go over the SBA maximum.

Small Business Loans

F.A.Q.’s

When are SBA Loans not a good fit?

Although SBA loans are a great source of capital for most small businesses, there are some eligibility restrictions. Borrowers must operate for profit, do business in the US or its territories, and use alternative financial resources, including personal assets, before seeking financial assistance. Certain types of businesses don’t qualify, and owners with a criminal record or any delinquent federal debt (including taxes or student loans) could have trouble qualifying. Click here to visit the SBA website for full terms, conditions, and ligibility. If you’re not eligible, we can help you find alternatives like conventional term loans, lines of credit, bridge loans, and equipment leasing.

How do I qualify for an SBA loan?

If you meet the eligibility requirements, you will need to show your business’s profitability. You should have at least two years in business and positive cash flow. The owners will need good personal credit (640 or higher) and an adequate business FICO score (approximately 640). If you don’t meet the requirements now, we can help you position your business to reapply.

What are SBA interest rates based on?

Interest rates are negotiated with the lender, but the SBA’s terms restrict how much lenders can charge. The SBA bases these rates on the Prime Rate. Rates change depending on how much you borrow and how long the term is and range from Prime plus 2.25% to 4.75%.

Can I use an SBA loan to pay off debt?

You can use either the SBA 7(a) loan or the 504 loan to refinance debt. To qualify, the original loan would need to meet SBA loan requirements. You must also show that refinancing would significantly benefit your business.

Small Business Loan

Advantages

Offers to fund when other lenders refuse.

Designed to help small businesses.

Interest rates are capped by the SBA.

Great for women-owned and minority-owned businesses.

Motiva Capital

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Motiva Capital is your bridge to capital. Work directly with brokers who have been in your shoes. Let us show you what we can do for your business.

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