The SBA does not directly lend money to businesses. You actually get an SBA loan from big banks, small, regional banks, credit unions, and other lenders that participate in SBA financing. The SBA sets guidelines for loans made by its lending partners and guarantees a percentage of those loans to the banks, so financial institutions have more incentive to lend money to small businesses. Because of this guarantee, bankers may be more willing to lend you money even if you don’t fit their strict credit criteria. Nevertheless, at many major banks, getting an SBA loan can still often be a complex and lengthy process that can take several months. Lenders will want to review your credit and financial statements and expect you to have collateral to secure the loan. Thus, even with the government guarantee, many small businesses may not qualify for SBA financing.
ROI Business Funding facilitate the process and help small business owners like you secure financing through SBA loan programs. We specialize in helping you successfully apply for the right type of funding to accomplish your short-term and long-term goals. We can help you secure SBA funding to expand your business, purchase inventory, improve your cash flow, buy new equipment and finance other business needs and opportunities. The most popular SBA guaranteed loan is the 7(a) loan for general business needs. For small loans (under $50,000), consider a microloan. To buy fixed assets, such as equipment or commercial real estate, look into the CDC/504 loan. If you are unsure which program is right for you, our Funding Specialists can walk you through your options and help you determine if you might qualify for an SBA loan.