Small Business Administration Loan
Keep your business afloat with a straightforward cash flow solution that a small business administration loan can provide. Achieve financial stability and long-term success.
Maximum loan amounts of $5,000 – $5,000,000
Interest rates begin at 7.75%
Loan terms last from 5-25 years
Get your approval within two weeks
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Apply
Fill out our form to start the qualification process.
Review
One of our agents will review your application and get you the best rate available.
Approved
Receive working capital for your business in as little as 24 hours.
How Do I Qualify for a Small Business Administration Loan?
Small business administration loans aren't easy to acquire. Although SBA loans are easy to qualify for among small or new business owners, it's also one of the most tight ones. The most important factor of an SBA loan is your credit score.
In qualifying for an SBA loan, be prepared because it's going to require a lot of time, energy, patience, attention, and documentation. Don't believe other lending firms that offer approval within days. SBA loans take time. But that said, SBA loans are ideal for growing your business and refinancing other debts at lowest rates available.
Most businesses who received approval had:
Business annual revenue of over $180,000
Been in business for over four years
Credit scores of 680
How to Apply for a SBA Loan
You can apply for a small business administration loan in a more convenient and comfortable way with Merchant ReFi's easy application process.
Some documents we require include:
Driver’s License
Voided Business Check
Bank Statements
Profit & Loss Statements
Business Tax Returns
Personal Tax Returns
Business Plan
Business Debt Schedule
Ready to get the funding your business needs?
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The Basics of Small Business Administration Loan
SBA loans are named as such because they are guaranteed and implemented by the Small Business Administration.
Because of multiple SBA funding programs, the Small Business Administration provides SBA loan guarantees that amount up to 85% of the loan amount. These are provided via an SBA-approved lender -- usually credited banks.
We, at Merchant ReFi, take pride in our diverse marketplace. We are all about helping all sorts of business owners fund their own business. We can help you find flexible funding in the form of secure SBA loans.
SBA Loan Fundamentals
The Small Business Administration is a federal agency, and they are dedicated to helping entrepreneurs improve their small businesses. Plus, they also aid you in taking advantage of contracting opportunities and getting better access to other more traditional business loans. They use federal money to guarantee a percentage of loans doled out by traditional banks. And as a result, these banks have more incentive to lend money to small businesses.
An SBA loan has three main programs that allow you to borrow money for whatever the business purpose. This includes purchasing equipment or inventory, coming up with working capital, acquiring real estate, or even to refinance other business debts. What’s more? SBA lowers the risk for lenders, and that means more small business owners can get longer-term, lower rate financing that comes from the bank.
Guarantees brought by the SBA reassure bankers and they are more inclined to lend your business some money if you don’t necessarily fit into their strict credit criteria.
Things to Expect From an SBA Loan
SBA loans are significantly a lot easier to qualify for, but you’ll still be working with a bank. Applying for an SBA loan will entail an extensive loan application process. There’ll be plenty of documents regarding your business that you have to provide.
Even with the aid of a government guarantee, the participating banks will still look for your financial statements, a description of your business, information about your collateral, etc. But most of all, applicants would be qualified if they can afford to repay the loan. One great factor for consideration here is your company’s borrowing history. It determines your SBA loan’s approval.
Benefits of an SBA Loan
Your access to a small business administration can help your business achieve the sort of financial stability needed for long-term success. There are benefits you can have by through an SBA loan. And they include:
- Additional capital:Additional capital: SBA loans have this choice as a viable option.
- Consistent cash flow:Consistent cash flow: You can avoid “uneven” cash flows throughout the year.
- Reasonable terms & conditions:Flexible terms & conditions: Enjoy the privilege of reasonable terms like lower down payments and interest rates.
Should You Consider a Small Business Administration Loan?
The SBA loan program that you should apply for will depend on the size, age, and the goals of your business. Reevaluate your reasons for getting an SBA loan before deciding on the right SBA loan program for you.
Here are the three most popular programs among SBA loans:
- The 7(a) Loan Program
- The Microloan Program
- The CDC/504 Loan Program
How Much Will a Small Business Administration Loan Cost?
Small business administration loans are difficult to qualify for, but getting through can entail significant benefits for your business. An SBA loan can fund so much of your business' growth and your daily functioning.
So how much will a small business administration loan cost you?
SBA Loan Programs & Different Fees
The cost and the repayment of your Small Business Administration loan depend entirely on the type of program that you choose.
- 7(a) SBA Loan Program:Guaranty fees of 1.7% for loans up to $150,000 & 2.25% for loans larger than $150,000. Interest rates at a maximum of 2.75%. Ten years of repayment for working capital and equipment loans.
- CDC/504 SBA Loan Program: Loan fees at about 3% of the loan amount. Interest rates begin at 5-6%. And maturity terms of 10-20 years.
- Microloan Program: There are no fees in microloans. The interest rates range from 8-13%. And the repayment term lasts up to 6 years with monthly repayments.
Will the Cost be Worth it?
A small business administration loan is ideal for any business in need of reserve cash, and financial resources for carrying out big investments. However, an SBA loan does come at an even more meticulous application process. But getting through the initial application process is worth it.
It is, however, far-fetched to say that SBA loans are entirely good or always bad for small businesses. Keep in mind that every business is different and has diverse needs and situations, and therefore, it’s crucial to consider the advantages and disadvantages of how an SBA loan can affect your company before applying.
However, if you’re looking for straightforward cash flows and you can’t get it from traditional lenders, a Small Business Administration loan can be your feasible option.
What’s In It For You
Your small or even medium-sized business has financial obligations. We recognize that and our merchant advance can help! You can use your advance for anything related to your business — such as real estate, taxes, payroll, and more — and you can get it as soon as you’re approved. Our merchant cash advance company also doesn’t require you to put down any collateral, making the process easier and less stressful for you. Looking for an increase in working capital? Welcome to Merchant ReFi.
Merchant ReFi
Not sure how to find working capital? Merchant ReFi is the answer. Get merchant finance as soon as you’re approved — which is often the same day you apply — and repay your merchant advance easily through small percentages taken out of your company’s credit card transactions or through a fixed ACH debited to your bank account. We’re business lenders who are here to help your business succeed.
