Looking to take your business to the next level? It may be time to take out a Small Business Administration (SBA) loan. Our team at Florida Capital Bank (FLCBank) can help with the financing.
Unfortunately, you can’t just simply get a SBA loan, you must 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, be prepared. You will need to gather certain documents and other information that is needed to qualify for a SBA loan. You should also familiarize yourself with what the lender’s guidelines are before you seek out the loan.
SBA loans through Florida Capital Bank (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.
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.
Here are some requirements for your business to qualify for an SBA loan:
- Credit score: Your lender will want to see your credit score as they may believe the past can dictate the future. Lenders are looking for people to have both great 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. If your credit score isn’t high, you can increase it by paying your bills on time or having a low debt to credit ratio. You will need an excellent business credit score and a good personal credit score to qualify for an SBA loan.
- Minimum qualifications and requirements: Your best chance of getting approved for a SBA loan is to meet or exceed all the lender’s minimums regarding credit scores, annual revenue, size standards, and years in business. You cannot be a life insurance, bank or real estate investing company and get a SBA loan.
- Annual Revenue: The lender wants to see how your sales and cash flow has grown. You want to bring monthly financial statements from the past few years. The lender will look at certain metrics to determine your business’ ability to pay bills. The lender may also ask for copies of your bank account transactions to confirm cash flows.
- Current, Strong Business Plan: The lender wants to know how the loan will be used and how you plan to grow your business and if you can repay. This business plan should include projected financials and how you will pay the loan back.
- 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.
Before you apply for an SBA loan, meet all the requirements as best and close as you can. 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 SBA loan requirements.
Looking to Apply for an SBA 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 have an extensive array of financing options to help you achieve your business goals and aspirations. SBA loan options include an SBA 7(a) Loan, which are most-widely used and can provide borrowers a more flexible loan structure with longer repayment periods and lower down payments. Or, an SBA 504 Loan, which is used for commercial real estate financing for owner-occupied properties and can be used to finance equipment and other fixed assets.
Let our loan specialists determine if these viable programs are right for your financing needs. Check out our 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.