If you’re looking to expand or take your business to the next level, your best bet is to take out an SBA (Small Business Administration) loan. Our team at FLCBank can help with the financing.
You can’t just simply get an SBA loan, you must be eligible and qualify for it. It’s in your best interest to apply for a business loan before you need it.
When you are ready to apply for a loan, you will need to gather certain documents and other information that is needed to qualify. You should also familiarize yourself with what the lender’s guidelines are before you seek out the loan.
SBA loans through FLCBank are designed to help you capitalize on the opportunities that make sense for your business. SBA loans can offer a wide array of lending options for owner-operated and managed for-profit businesses. SBA loans can help provide business funding to a variety of industries such as manufacturing, wholesale, retail, and service.
SBA loan programs allow for fixed or adjustable-rate terms depending on the use of the proceeds. The maximum terms of these types of loans range from seven years for working capital to 25 years for buildings and real estate.
Florida Capital Bank is an SBA Preferred Lender (PLP). SBA loans are made and administered by Florida Capital Bank and the SBA guarantees a portion of each loan.
Before meeting with the lender, gather all financial and legal documents including a driver’s license, commercial leases (if any), business licenses, personal and business tax returns, payroll records, business insurance plans, incorporation documents, other affiliated corporate ownership, or added financial obligations.
Requirements for your business to qualify for an SBA loan
- Credit score: Your lender will want to see your credit score. Lenders are looking for people to have both well-managed personal and business credit scores. The lower your credit score, the higher risk you are to the lender. For reference, excellent credit scores for a business are above 80 and for personal credit are about 750. There are many places you can find your credit score for free including annualcreditreport.com or creditkarma.com.
- Annual Revenue: The lender wants to see how your sales and cash flow have grown. You want to bring monthly financial statements and bank transaction from the past few years. The lender will look at certain metrics to determine your business’ ability to pay bills and to confirm cash flows.
- Current Business Plan: The lender wants to see a strong business plan to know how the loan will be used, how you plan to grow your business, and if you can repay.
- Financial collateral: Lenders want to lend to someone with the least risk possible and you can reduce your risk by giving additional financial collateral that will help secure and back the loan. Such collateral includes easy-to-sell assets, real estate, equipment, accounts receivable, etc.
Eligibility for SBA 504 and SBA 7(a) loans
Eligibility requirements for a SBA 504 loan:
- The business must fall within the size standards set by the SBA.
- Owners must be U.S. citizens or registered aliens with green card.
- The business must be operated for profit and located in or planning to locate in Florida.
- The business must be a legal entity: corporation, partnership, sole proprietor or limited liability company.
- The business’s tangible net worth cannot exceed $15 million.
- The business’s average net income after Federal income taxes for the two full fiscal years prior to application cannot exceed $5 million.
- Loans cannot be made to businesses engaged in speculation or investment in rental real estate.
Eligibility requirements for a SBA 7(a) loan:
- The business must be a registered for-profit business operating legally.
- You cannot be on parole as a business owner.
- The business must have less than 500 employees and less than $7.5 million revenue on average each year for the past three years.
- The business’ net income must be under $5 million.
- The business owner must show he/she is investing own time and money into the business (equity).
- The business must be in the United States.
- The business must be an SBA-eligible industry.
- The owner must show he/she tried and failed at getting funds from other financial lenders.
Looking to Apply for a Small Business Loan in Florida?
At FLCBank, we help business owners with the financing and growth of their business. Our team of banking experts at FLCBank will help you find the right financing solution for your business. We are here to help your business grow, and we will work with you throughout the loan application process. Contact us at FLCBank to find out about our small business loans in Florida requirements.
Let our loan specialists determine if these viable programs are right for your financing needs. Check out our small business loan options at our SBA loans page.
FLCBank is a leader in the banking industry focusing on solutions for the financial well-being of businesses and their owners. We are a nationally chartered bank headquartered in Jacksonville, Florida with full-service branches located in Jacksonville, Gainesville, Orlando, and the Tampa Bay area.
To learn more, call us at 800-318-3159