Get Service Action Checklist - Sba - Sba

The reasons depend on your industry, need for funds, and your business's general history. Other reasons for a denial could include the fact that your company is a startup, your business's finance history, or the type of industry you are in does not qualify for an SBA loan.

In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Normally, businesses must meet SBA size standards, be able to repay, and have a sound business purpose. Even those with bad credit may qualify for startup funding.

Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole.

SBA loan: Lenders offering SBA loans require credit scores between 620 and 680.

SBA loans are easier to qualify for than regular bank loans. They also have lower interest rates, longer terms and more flexible repayment options.

“SBA-guaranteed loan proceeds may not be used to pay a creditor in a position to sustain a loss (including the same institution's debt). This includes any refinancing that will shift all or part of a potential loss from the original Lender to the SBA.”

If you plan on paying more than 20%, you must: Provide the lender with three weeks worth of written notice or you'll have to pay 21 days worth of interest. Make the prepayment within 30 days of the notice date or you'll have to start the process over again.

Do I Need to Complete SBA Form 912? Any small business owner applying for an SBA loan could be required to fill out this form by the federal government. However, if you don't have a criminal record, you may not be asked to complete it.