SBA Loans

Small businesses are a valuable source of jobs, ideas, and innovative new products. But, not every lender is willing to take a chance on funding them. That’s why the Small Business Administration works with lenders to encourage extending loans to small businesses.

SBA Loan Benefits

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Qualify even if you’ve been turned down before.

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Get $5M or more for your small business.

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Minority and women-owned businesses supported.

What is an SBA Loan?

With the SBA acting as a type of guarantor, lenders can feel more confident their money will be protected. For small businesses, this means more opportunities to get the funding they need at affordable rates. The SBA doesn’t service these loans directly, which is why it’s important to find a knowledgeable broker. You’ll need an SBA-certified private lender or a Certified Development Company to get an SBA loan. A good broker will be able to help you choose the right lender and navigate the application process. SBA loans will cover anything from real estate and equipment needs to construction and working capital. Find out which SBA loan is right for you.
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Although the SBA backs a range of financial tools, the 7(a) and the 504 are the most common.

The two loans are similar in many ways, but with a few important distinctions. The SBA 7(a) loan will cover working capital, real estate, equipment, construction, renovations, and refinancing. The SBA 504 doesn’t cover working capital but can offer a higher loan amount for real estate, construction, and equipment.

To qualify, your business has to be eligible. The maximum net annual income is $5M and the maximum net worth is $15M to be considered a small business. Certain types of businesses like real estate, gambling, non-profit, and rare coins are not eligible. In addition, none of the main stakeholders in the business can have delinquent federal debt like taxes or student loans. For a full list of eligibility requirements, talk to your broker. SBA loans will let you borrow up to $5M with interest rates capped by the Administration.

Traditional and non-traditional lenders available to you

In Capital Accessible Through Our Network

Fastest time to funding through Platz Capital

Real Estate

Both SBA 7(a) and 504 loans can help your small business get new real estate. Real estate loans mature at 10 years, 20 years, or 25 years and require at least a 10% down payment from the borrower. The SBA 7(a) offers a fixed interest rate and the SBA 504 has variable or fixed-rate options.

Equipment

Use either loan to get new equipment for your small business. These loans mature in 10 years with fixed or variable rates, depending on which SBA loan you choose. You can buy new or used construction, medical, restaurant, and industrial equipment and technology with SBA loans.

Construction

Build an entirely new building or perform renovations to an existing one with SBA 504 loans. Get $5M or more to use for labor, materials, inspections, land development, and other construction costs. The owner must occupy at least 51% of the building’s usable space and can rent out the rest to other businesses.

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Step 1 – Preapplication

This is the step the banks miss. You’ll give us simple information that will help us position you for funding.

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Step 2 – Financing Selection

Our team sources and presents offers along with the critical information you need to make decisions.

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Step 3 – Closing

We facilitate the process from final selection to closing to create the smoothest process possible.

BEGIN THE PRE-QUALIFICATION PROCESS

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F.A.Q.

Q. Can I use an SBA loan to pay off personal debt?
No. SBA loans are exclusively for small businesses and cannot be used for personal expenses. This includes personal debt and residential real estate purchases. Talk to your broker about the best places to find personal loans.
Q. Does an SBA loan require collateral?
Yes. Most lenders do want collateral to secure an SBA loan. However, lack of collateral is not necessarily a barrier to getting one. For 7(a) loans, lenders aren’t required to get collateral for amounts less than $25K. Contact your broker to find out more.
Q. How do SBA loans affect my credit?
Lenders that provide SBA-backed loans report to credit agencies just like any other lender. How you manage the loan will most likely be reflected in your credit score. This can either raise or lower your score, depending on if you pay on time or carry a large balance.
Q. Can SBA loans be used for disaster recovery?
While the SBA 7(a) and 504 loans won’t cover disaster recovery expenses specifically, they can be used to fund construction and renovations. The SBA does have other loans that address disaster recovery in particular. Your broker can help you find out more.