Qualifying for SBA Loans
Understanding SBA eligibility.
Small Business Administration (SBA) loans are designed to be accessible to small businesses that might not otherwise qualify for conventional loans. Learn more about the requirements to see if your business could qualify.
SBA Definition of a Small Business
The SBA defines a small business as one that:
- Is independently owned and operated
- Is not dominant in its field
- Is for-profit
- Meets SBA employment or sales standards
Size Standard Qualifications
To be eligible for the 7(a) and 504 loan programs, a small business cannot have:
- A net worth that exceeds $15 million
- An average net income of greater than $5 million over the past two years
Small business characteristic qualifications
- Owners with good character and strong management skills
- Business net worth consistent with industry averages
- Ability to repay based on historical cash flow
- Reasonable collateral
Small business loan application requirements
- Personal and business tax returns
- Business financial statements for three past years
- Current business financial statement
- Report showing age of unpaid invoices
- Articles of Incorporation and Bylaws
- Personal tax returns from prior three years
- Current personal financial statements from key people in the company
- Collateral information i.e. valuation
All credit products are subject to collateral and/or credit approval. SBA loans subject to SBA eligibility.
SBA Preferred Lender.