Small Business Administration (SBA) Loans

General SBA loan requirements include:

• Meet the SBA definition of small business.
• Not delinquent on any government loans, including federal student loans.
• Strong personal credit.

An SBA 7(a) loan is a small-business loan issued by a private lender — such as Texell — and backed by the SBA.

To apply, work with our experienced lenders at Texell to complete an application. Texell submits your application package to the SBA to receive the loan guarantee. The SBA sets guidelines for maximum loan amounts, term lengths and interest rates.

General SBA 7(a) loan eligibility criteria include:

• Must be a for-profit business operating in the U.S.

• Must be a small business, as defined by the SBA

• Must have, as a business owner, invested your own time and money into your business

• Must have sought out other forms of financing before turning to an SBA loan

• Must be able to demonstrate the need for a loan and show the business purpose for which you'll use the funds

• Cannot be delinquent on any existing government loans

Real estate investment firms, religious organizations, and gambling businesses are not eligible for SBA 7(a) loans.

Lenders typically want to see an excellent personal credit score (690 and above), solid annual revenue, and at least two years in business.

• SBA Form 1919, Borrower Information Form
• Personal background and financial statement (SBA Forms 912 and 413)
• Business financial statements, such as balance sheets, profit and loss statements, and projected financial statements
• Business certificate or license
• Loan application history
• Income tax returns
• Resumes for each business owner
• Business plan
• Business lease

You can use SBA Express Loans for working capital, equipment financing, and other business needs. They are similar to a 7(a) loan with lower borrowing maximums and faster decisions. Express Loans are government-backed by 50%, and interest rates may be higher than a 7(a) loan.

Businesses must meet the following requirements to be eligible for an SBA Express Loan:

• Be a for-profit business operating in the U.S.
• Be a small business, as defined by the SBA
• Have owner equity to invest
• Already invested personal assets and resources towards the business

For major business purchases like real estate or machinery, SBA 504 loans offer long-term financing (up to 25 years). Loans are typically capped at $5 million, but some projects can qualify for up to $5.5 million.

Funding for each 504 loan comes from three places:

• A Certified Development Company (40%)

• A bank or credit union (50%)

• The loan applicant (10%). Under certain circumstances, applicants may need to put down as much as 20%.

In addition to meeting the general SBA loan eligibility requirements, 504 loan requirements include:

• For-profit business operating in the United States
• Net worth of less than $15 million
• Average net income of less than $5 million for the two years before your application

Nonprofit organizations, life insurance companies, religious institutions, private clubs, and businesses that primarily engage in lending, lobbying, or legal gambling cannot receive an SBA 504 loan.

You'll need the following documents to apply for an SBA 504 loan:

• Three years' business and personal tax returns
• Business and personal financial statements
• Business plan
• Contractor estimates (for construction loans)
• Cost documentation (for equipment loans)

An SBA loan takes between 60–90 days. SBA Express Loans can take 30–60 days.