Small Business Administration loans are designed to help smaller businesses—the ones big banks often turn away.

A common frustration for many small business owners is that big-name banks won’t consider their loan requests because the amount is too low. Fortunately, there’s an alternative: SBA loans that can be approved for as little as $500.

What’s an SBA loan?

SBA stands for the Small Business Administration which is a federal U.S. agency dedicated to helping small businesses with capital in the form of loans, as well as counseling and contracting expertise.

Lending partners, like Consumers and other banks, work together with the SBA to make loans available locally. An SBA loan can be as little as $500 or as much as $5.5 million.

The three most popular types of SBA loans are:

• 7(a) loans: can be used for many purposes, including business startup
• 504 loans: long-term fixed rate loans to finance business growth
• Microloans: up to $50,000 for small businesses and certain non-profit and childcare centers

Who can get an SBA loan?

To be eligible for an SBA loan, there are financial requirements like creditworthiness and the ability to repay the loan. In most cases, SBA loans are issued to for-profit businesses. In all cases, the business must physically operate in the U.S.

Where can I get an SBA loan?

Many lenders offer SBA loans, and we invite you to check out Consumers SBA loans. Our commercial loan officers can walk you through the qualification details and application process. We’d be honored to help you start or expand your business with an SBA loan, contact us.

 

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