What Is An SBA Loan?

This article is part of  SmartBiz Loans’ series to highlight topics of interest to our community.

Are you an entrepreneur? You might have heard that SBA loans are the best bet for small business owners who want to expand and save. But what the heck is an SBA loan? Here’s a quick snapshot of what you need to know.

Those Three Little Letters

The Small Business Administration (SBA) is a government agency founded in 1953 and created to support hard-working entrepreneurs and small business owners in the US.  

So I Can Get an SBA Loan from the SBA?

The SBA does not actually make direct loans. The agency provides loan guarantees, promising the bank to pay back a certain percentage of your SBA loan if you are unable to.

Why Are SBA Loans the Best?

Four words: Low rates, long terms. This means payments will be small and won’t impact cash flow like large monthly payments can.

How Can I Use SBA Loan Proceeds?

  • Working capital
  • Equipment purchases
  • Adding employees
  • Increasing marketing
  • Refinancing existing debt

I’ve Heard that the SBA Loan Process is Tedious

Not anymore! SmartBiz offers a fast and easy way to get an SBA loan. Our online, streamlined platform makes the application process easy and cuts the funding time significantly, from months to as little as a week. Additionally, every borrower is assigned a dedicated Relationship Manager who provides “white glove concierge service” to assist with the process.

Why SmartBiz Loans?

Don’t take our word for it! More than 100 happy SmartBiz customers have posted reviews on TrustPilot. With an overall score of “excellent” (9.5 out of 10) glowing comments include:

I will recommend them to anyone any day.

The customer service was beyond exceptional! … The loan process was fast and simple as the team there was on top of everything.

Smart Biz loans were so awesome to work with, they helped my get my SBA loan and even gave me advice on how to get it.

How About the Rates?

It’s tough to beat our low rates. SBA loans from banks in the SmartBiz network range from an interest rate of 4.75% – 7.00%.*

*SBA loans offered from banks in the SmartBiz lending network have a variable rate of Prime Rate plus 1.5% to 3.75%.

How Much Can I Borrow?

Banks in the SmartBiz network offer SBA loans up to $350,000. For commercial real estate financing, we offer loans from banks in the SmartBiz network of up to $5 million.

What do I Need to Qualify?

Businesses that qualify for an SBA loan from banks in the SmartBiz network typically have $50,000 to $5 million in annual revenue and 1 to 40 employees. Most are profitable and cash flow positive. All are able to show that they can afford to make our low monthly loan payments.

Requirements include a minimum of 2 years in business, no outstanding tax liens, no bankruptcies & foreclosures in the past 3 years, no recent charge-offs or settlements, no criminal record other than minor vehicle violations and current on government-related loans.

I’m Convinced. How Do I Get Started?

It’s easy! Simply create an account here. You’ll find out in about 5 minutes if you’re qualified for a low-cost SBA loan from banks in the SmartBiz network. BONUS: During pre-qualification, we perform a “soft pull” of your credit that will not impact your credit score or show up as an inquiry on your credit report.

An SBA loan is the best bet for small businesses with low rates, long terms and low monthly payments. Visit SmartBiz Loans® today and discover in about five minutes if you’re qualified to apply for an SBA loan with one of our bank partners.