There seems to be much confusion in the marketplace as to what kind of business can qualify for an SBA loan. Much of this confusion is caused by SBA lenders who have a specific “credit box” that they will lend in, and these lenders like to tell borrowers that if they don’t fit into their banks “credit box”, they cannot get an SBA loan.
Let me clarify what can and can’t be done. A business that generally CAN get an SBA loan is one that is organized for profit, is a start-up or an existing business, has a net worth of less than $15.0 million or has average taxable net income over the last two years of less than $8.0 million. A business that CANNOT get an SBA loan is a business engaged in gambling, lending or a speculative real estate type of business, a business with a net worth over $15.0 million or average taxable net income over the last two years of more than $8.0 million.
The key to getting a straight and accurate answer is not always going to the “biggest” SBA lender in the marketplace, but a lender who has a dedicated SBA department who is big enough to handle your business needs and small enough to remember how to take care of a customer. At BNC National Bank, we are one of the leading SBA lenders and our lending team has over 85 years of combined SBA lending experience.
For more information about SBA financing, visit our SBA Lending page.