What are some of the most common SBA loans?

• Commercial Real Estate Purchase: You can use the SBA program to purchase commercial real estate, in some cases with 0% down! Loan terms up to 25 years and no balloon payments. Most SBA loans used to purchase commercial real estate are likely to require 10-20% down.
• Business Acquisions The SBA loan program is one of the best programs to finance mergers and business acquisitions that have little or no collateral. The SBA is mainly a cashflow program and doesn’t always rely on loan to value calculations to approve your loan. There are some caveats to approving a loan with no collateral and may or may not apply to your current situation
• Refinance: The SBA loan program can be utilized to refinance or restructure your businesses current debt! This can allow you, the business owner to refinance seller carry loans, balloon notes, high interest debt, or debt that is on unreasonable terms (shorter loan term than what the bank could offer you through the SBA program), private notes and much more!
• Furniture, Fixtures and Equipment (FF&E): An SBA loan can assist business owners with the purchase of needed (FF&E) furniture, fixtures and or equipment for their current or future needs. Instead of leasing equipment or financing equipment on a short loan or lease term you can utilize the SBA loan program and obtain a 10 year loan allowing you to have lower payments than most other loans options available. Equipment that has a longer useful life may be eligible for up to 15 year term loans! 
• Expansion: Expansion loans are great for existing business owners that are seeking financing to open an additional location. The SBA loan product can encompass all loan uses listed above and combine them into one loan making it a streamlined to cover most every need for an expansion. 
• Working Capital: Does your business need cash to pay for marketing, advertising or payroll? Need cash because your business relies on accounts payable to cover your cash burn cycle leaving your business in a tight cash crunch? If you said yes to anyone of these your business may need a working capital loan or a business line of credit, both covered by the SBA program. 
• Construction: Construction loans can be used to remodel or upgrade your current leased or owned space or build from the ground up. Many business owners choose ground up construction loans because they can’t find a building that suits them. For example if you are a business owner that typically needs a special use property such as Self Storage, Gas Station, Car Wash, Hotel or a Medical Facility such as an Urgent Care or Free Standing ER etc. and you have found a demand for your business in any area that is lacking what your business would offer. Ground Up Construction through the SBA program might be the best option for you!
• Start up loans: If you are an experienced owner operator or experienced key employee that has sufficient management experience and wants to start your own business you may be eligible for Start Up Financing through the SBA program. These loans typically require higher down payments (20-30% of the overall project cost) and adequate business experience but can give you the funding you need to get your business up and running!
• Mixed Use: If you have many financing needs and feel like you have to obtain multiple specific loans to fund separate business obligations, know that there is a better way. The SBA loan program allows you to combine multiple loan purposes into one loan and provide loan terms from 10-25 years depending on the use of the loan proceeds. 

How do I qualify for an SBA loan? 

You will be asked for different documentation depending on what business you have and what loan use you are requesting but typically up front lenders will want to review (but not limited to) the following:

• Last 3 years business tax returns: Lenders ask for these to see the trends in your financials over the years. Hopefully the trend is getting better and better annually or staying the same. If not be prepared to tell them why your financials aren’t consistent.
• Current profit and loss and balance sheet: These financials are requested to see how your business is doing in the most recent year prior to you filing your next business tax return also assisting the bank look at how your financials are trending and helps them understand how well your business will cash flow currently with the addition of the new debt. 
• Debt Schedule: If your business has any debts you would list them here. The debts listed on the Debt Schedule need to match the long term liabilities listed on your current balance sheet that you provide. This will help the lender see if you have adequate cash flow to cover your current debts and the new loan debt. Click here for an easy template to use. 
• Personal Financial Statement: The lender will ask for this document to learn more about your current personal financial state. Remember to only include personal financials here and not business financials. The lender reviews this document to get a good idea of your cash on hand, salary, and what your net worth is. This also tells the lender if you own real estate that could possibly be used as collateral for the loan if need be along with other info that may help them qualify you for the loan. Click here for the SBA Personal Financial Statement Template.
• Most recent personal tax return: The lender mainly asks for your most recent personal tax return to see the current income you bring in and if you have any additional affiliates or other businesses that you own that they would potentially need to review financials on. 

Match with a qualified SBA lender!

In today’s world it shouldn’t be hard to connect with SBA lenders. Most people go to their local lender who may or may not know much about SBA lending and end up getting strung along for months leading to a dreaded decline and a deal that falls apart. No one has time for this especially while running a business. Not having the right SBA lender can cost you your hard earned time and money! Here at SBA Gurus we pride ourselves in matching you with the most qualified SBA bankers nationwide. Take the guess work out of lending by speaking with a lender that knows the SBA product like a pro... or better yet, like a Guru! Click the button below to get matched with an SBA lender now to save time and learn more about the SBA program. Most SBA lenders that you match with will give you a letter of interest within 24 hours!